Q3 2019 interim report July-September

• MTG continued to deliver on its strategic direction, reporting seasonally robust operational development for the quarter
• Esports sales were up 12 percent, despite one less Master property compared with Q3 2018. The positive development was mainly driven by increased sponsorship sales
• Stable development for the gaming vertical, supported by a strong operational recovery in Kongregate. ARPDAU increased by 7 percent in constant currencies compared to same period last year
• MTG VC fund invested SEK 10 million in three growth companies, two of which comprised new investments

STOCKHOLM, October 29 07.30am CET, 2019 — Modern Times Group MTG AB (MTG) today publishes its Q3 2019 financial results. MTG continues to deliver on its strategic direction, reporting seasonally robust operational development for the quarter.

“The third quarter 2019 showed a high level of activity with important initiatives taken to professionalize the commercial part of esport through agreements and partnerships formed and previously announced. Our esport sales grew by 12 percent, driven by improved performance in our Master properties and strong revenue development for sponsorship,” says President and CEO Jørgen Madsen Lindemann.

“The gaming vertical had a solid performance impacted by sequential seasonality in Q3 2019, namely the timing of bigger in-game events, and investments in marketing. However, the underlying operational development was positive with ARPDAU increasing by 7 percent year-on-year in constant currencies,” says President and CEO Jørgen Madsen Lindemann.

MTG Q3 2019 Financial report

Higher revenue driven by esport in Q3 2019

• MTG continued to deliver on its strategic direction, reporting seasonally robust operational development for the quarter
• Esports sales were up 12 percent, despite one less Master property compared with Q3 2018. The positive development was mainly driven by increased sponsorship sales
• Stable development for the gaming vertical, supported by a strong operational recovery in Kongregate. ARPDAU increased by 7 percent in constant currencies compared to same period last year
• MTG VC fund invested SEK 10 million in three growth companies, two of which comprised new investments

Q3 2019 financial highlights

• Net sales growth of 4 percent to SEK 1,066 (1,027) million, mainly attributable to changes in FX rates
• EBITDA of SEK -17 (44) million, of which SEK 14 million due to the impact of IFRS 16
• Adjusted EBITDA of SEK 19 (27) million, including adjustments for long-term incentive (LTI) programs of SEK 17 (-20) million and M&A transaction costs of SEK 19 (-) million (1)
• Operating income (EBIT) of SEK -98 (-13) million
• Net income from continuing operations of SEK -98 (-43) million and basic earnings per share of SEK -1.73 (-1.16)
• Total net income of SEK -123 (192) million
• Net cash flow from operations of SEK -38 (251) million

  
Shareholders information

Financial calendar

Conference call
MTG AB will hold a conference call at 10:30am CET that will be hosted by President & CEO Jørgen Madsen Lindemann and CFO Maria Redin.

The access pin code for the call is 578 72 07

To listen to a streamed webcast of the conference call visit:
https://edge.media-server.com/mmc/p/cpr9xk5m

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
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About MTG
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’).

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 07.30am CET on Tuesday October 29 2019.

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