DreamHack

Invitation to Subscribe for Class B Shares: Modern Times Group MTG AB

Modern Times Group (MTG) is executing a rights issue of up to 28,320,697 new Class B shares to raise approximately SEK 2,549 million.

• MTG is launching a rights issue of up to 28,320,697 Class B shares at SEK 90 per share to raise approximately SEK 2,549 million.
• The capital raised is primarily earmarked to repay a SEK 1,800 million bridge loan and a vendor note associated with the acquisitions of Hutch and increased ownership in InnoGames.
• Failure to complete the rights issue risks a working capital shortfall and potential breaches of financial covenants within the next twelve months.

Modern Times Group Q3 2020 Financial Results

Modern Times Group’s financial results for the third quarter of 2020 demonstrate a period of record profitability driven by strong performance in the gaming vertical and disciplined cost management within the esports sector.

• Modern Times Group achieved record profitability in Q3 2020 with net sales of SEK 912 million and an adjusted EBITDA of SEK 196 million.
• The gaming division drove financial performance, reaching all-time high adjusted EBITDA margins due to elevated in-game spending and normalized marketing costs.
• The esports vertical experienced a 44% year-over-year decline in net sales due to live event restrictions, though losses were mitigated by cost-cutting and new online production formats.

Modern Times Group Q2 2019 Financial Results

Modern Times Group demonstrated strong operational momentum during the second quarter of 2019, characterized by an 11 percent increase in reported sales and a significant improvement in profitability.

• Modern Times Group reported an 11% increase in total sales for Q2 2019, with its core esports and gaming verticals achieving a combined 14% growth.
• The gaming division grew sales by 19% with an adjusted EBITDA margin of 29%, driven largely by mobile gaming and the title Forge of Empires, which surpassed EUR 500 million in lifetime revenue.
• The divestment of Nova in April generated SEK 1.8 billion in cash, bringing the company's total cash balance to SEK 2.1 billion to fund future strategic acquisitions.

Annual Report 2018: Shaping the Future of Entertainment

In 2018 MTG delivered a robust financial rebound while executing a decisive strategic shift toward esports and digital-video assets.

• MTG executed a major strategic pivot toward esports and digital video in 2018, highlighted by the acquisition of ESL, DreamHack, InnoGames, and Kongregate alongside the divestment of non-core assets like Trace Partners.
• The company completed the separation of Nordic Entertainment Group (NENT) in 2018, which subsequently listed on Nasdaq Stockholm in March 2019.
• Financial performance showed growth with net sales rising 12–13% to SEK 19.7 billion and operating income increasing 24% to SEK 1.57 billion.

Modern Times Group Annual Report 2015

Modern Times Group (MTG) underwent a fundamental strategic pivot in 2015, transitioning from a traditional broadcaster into a diversified digital entertainment entity.

• MTG executed a strategic pivot in 2015 to become a digital entertainment entity, highlighted by the acquisitions of esports leaders Turtle Entertainment and DreamHack.
• Net income dropped significantly to SEK 251 million in 2015, down from SEK 1,172 million in 2014, due to restructuring costs, currency headwinds, and losses from discontinued operations.
• Annual net sales reached SEK 16,218 million, marking a 3% increase compared to the previous year.

Annual Report 2016

Modern Times Group’s 2016 annual report presents a comprehensive overview of the company’s transition toward a digital-entertainment model and its financial outcomes for the fiscal year.

• MTG achieved a 7% increase in total net sales to SEK 17.3 billion and an operating profit of SEK 1.35 billion for the 2016 fiscal year, driven by a strategic pivot toward digital entertainment.
• The MTGx digital-video unit experienced a 194% surge in net sales following the acquisitions of Turtle Entertainment, Zoomin.TV, Splay, and DreamHack, which improved the unit's operating margin from 0.2% to 4.4%.
• Organic growth turned positive at 2.2% in 2016, a significant recovery from the 14.2% contraction recorded in the previous year, largely fueled by the expansion of esports leagues and events.

Modern Times Group Q4 2015 Financial Results

Modern Times Group achieved record sales in the fourth quarter of 2015, driven by a strategic shift toward digital transformation and underlying growth in its core broadcasting businesses.

• Modern Times Group achieved record sales in Q4 2015, though EBIT declined due to an 80 million SEK negative impact from foreign exchange fluctuations.
• The Board of Directors proposed a 5% dividend increase to 11.50 SEK per share, representing an 86% payout ratio.
• The company launched a cost transformation program for 2016 targeting 450 million SEK in savings to offset ongoing pressures from sports rights investments and currency headwinds.

Modern Times Group Q4 2015 Full Year Report

Modern Times Group concluded the 2015 fiscal year by accelerating a strategic pivot from traditional broadcasting toward a digital-first entertainment model.

Modern Times Group Q2 2016 Investor Presentation

Modern Times Group’s Q2 2016 investor presentation outlines the company’s strategic transition from a traditional broadcaster into a leading digital entertainment provider.

MTG Q2 2018 Financial Results

MTG’s second quarter 2018 financial results demonstrate sustained momentum, characterized by 9% organic sales growth and a 12% increase in profit.

• MTG achieved 9% organic sales growth and a 12% profit increase in Q2 2018, marking the eighth consecutive quarter of at least 5% organic growth.
• Digital sales surged 76% during the quarter and now account for 36% of total group revenue.
• The MTGx segment drove significant expansion with a 44% increase in esports revenue, fueled by strong performances from ESL and DreamHack.

Modern Times Group Q3 2020 Interim Report

Modern Times Group demonstrated significant operational resilience during the third quarter of 2020, successfully navigating the disruptive effects of the global pandemic through a strategic pivot toward digital engagement and rigorous cost management.