“Throughout 2019, we have continued to develop our business verticals - esports and gaming - with an emphasis on becoming even more commercial and product relevant. As a result, we have seen both increased sales to record high levels, and improved operational performance.” says President and CEO Jørgen Madsen Lindemann in the report CEO letter.

“From a strategic and product perspective, additional important milestones have been achieved: we have launched the ESL Pro Tour format attracting the best teams in the world, added and grown mobile esport and landed new publisher relationships including a new multi-year agreement with Blizzard” President and CEO Jørgen Madsen Lindemann continues.

Q4 and full year 2019 financial report highlights follow below. For the full below see attached file or www.mtg.com.

Record sales driven by esport and gaming in Q4 2019

• Esports sales were up 15 percent, with O&O growing by 21 percent, supported by investments into sport games and one additional Master property compared with Q4 2018
• Strong sales growth for the gaming vertical, supported by a continued operational recovery in Kongregate and solid development for InnoGame’s Forge of Empires. ARPDAU increased by 14 percent in constant currencies compared with corresponding period last year
• MTG VC fund invested SEK 14 million in two growth companies

Q4 2019 financial highlights

• Net sales growth of 15 percent to SEK 1,163 (1,009) million
• Adjusted EBITDA of SEK 84 (43) million, including adjustments for Items Affecting Comparability of SEK 98 (-18) million, impairment of own capitalized costs of SEK 93 (4) million, Long-term incentive (LTI) programs of SEK 11 (4) million and M&A transaction costs of SEK 5 (12) million
• EBITDA of SEK -123 (40) million, of which SEK 11 million due to the impact of IFRS 16
• Operating income (EBIT) of SEK -206 (-18) million
• Net income from continuing operations of SEK -207 (-66) million
• Basic earnings per share of -3.08 (-1.25)
• Total net income of SEK -367 (478) million
• Cash flow from operations of SEK -34 (594) million

Shareholders information

Financial calendar 2020

Conference call MTG AB will hold a conference call at 03.00pm CET that will be hosted by President & CEO Jørgen Madsen Lindemann and CFO Maria Redin. 

Dial in details:

The access pin code for the call is 863 81 58 

To listen to a streamed webcast of the conference call visit: https://edge.media-server.com/mmc/p/txu95hir 

This information has been published in accordance with the EU Market Abuse Regulation and/or the Securities Markets Act or the Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 02.00pm CET February 6th 2020.

For more information:  Lars Torstensson, EVP Communications & Investor Relations  Direct: +46 (0)702-734 879, lars.torstensson (at) mtg.com  

Oliver Carrà, Public Relations Director Direct: +46 708 666 433, oliver.carra (at) mtg.com

Reach us: communications@mtg.com  Download high-resolution photos: Flickr  Follow: mtg.com / Twitter / LinkedIn

About MTG AB  

MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is a strategic and operational investment holding company in esports and gaming entertainment. Born in Sweden, the shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).