Hutch
Company
Documents about Hutch
Modern Times Group Q1 2022 Investor Presentation
Modern Times Group’s Q1 2022 investor presentation details the company’s strategic transition into a pure-play gaming entity following the divestment of ESL Gaming for $1 billion.
- Modern Times Group has transitioned into a pure-play gaming company following the $1 billion divestment of ESL Gaming.
- Q1 2022 revenue reached SEK 1,357 million with an adjusted EBITDA of SEK 342 million, representing a 10% pro forma year-over-year growth rate.
- The company maintains a user base of 35 million monthly active users and 7 million daily active users across its studio portfolio, which includes InnoGames, PlaySimple, and Hutch.
Modern Times Group Q4 2021 Investor Presentation
Modern Times Group’s Q4 2021 investor presentation outlines a strategic transition into a pure-play gaming company, highlighted by the divestment of ESL Gaming to Savvy Gaming Group.
- Modern Times Group is transitioning into a pure-play gaming company following the divestment of ESL Gaming to Savvy Gaming Group to unlock capital and shareholder value.
- Q4 2021 financial performance reached SEK 1,658 million in total revenue and a record-high adjusted EBITDA of SEK 346 million.
- The gaming segment grew 13% on a pro forma basis, driven by the successful integration of acquisitions including PlaySimple, Hutch, and Ninja Kiwi.
MTG Capital Markets Update 2022
Modern Times Group has successfully transitioned into a pure-play gaming entity, marking a strategic pivot defined by the divestment of ESL Gaming and a renewed focus on scaling evergreen mobile franchises.
- Modern Times Group has transitioned into a pure-play gaming entity, targeting a 7–10% organic revenue CAGR and a doubling of EBITDA by 2025.
- The company aims for an adjusted EBITDA margin of 23–25% and a cash conversion rate of 50–60% to support future acquisitions and shareholder distributions.
- The business model centers on Games as a Service (GaaS) across strategy, word, and simulation titles, utilizing the Flow platform for shared data and cross-promotion.
Modern Times Group Q3 2021 Financial Results
Modern Times Group achieved record financial results in the third quarter of 2021, characterized by a 16% organic pro forma net sales growth.
- Modern Times Group achieved 16% organic pro forma net sales growth in Q3 2021, supported by a 21% adjusted EBITDA margin.
- The gaming division reported a 63% increase in net sales at constant currencies, driven by the acquisitions of PlaySimple, Ninja Kiwi, and Hutch.
- Mobile platforms now account for 73% of gaming revenue, with the company implementing a new central organizational structure to drive synergies in user acquisition and data analytics.
MTG Q2 2021 Financial Results
The second quarter 2021 financial results for MTG demonstrate a period of strategic expansion and operational growth, characterized by a dual-focus strategy in the gaming and esports verticals.
- MTG achieved a 15% increase in net sales at constant currencies in Q2 2021, reaching a total of SEK 1,198 million.
- The gaming vertical reported pro forma sales of SEK 1,169 million, representing an 8% year-over-year increase driven by mobile acquisitions like Ninja Kiwi and Hutch.
- MTG expanded its gaming portfolio through the acquisition of PlaySimple, a leader in the word games genre, as part of its ongoing 'Buy & Build' strategy.
MTG Q1 2021 Financial Results
Modern Times Group’s financial performance for the first quarter of 2021 reflects a bifurcated operational landscape, characterized by robust growth in the gaming segment contrasted with ongoing pandemic-related headwinds in the esports vertical.
- Modern Times Group reported total net sales of 1,064 million SEK in Q1 2021, a 9% increase when adjusted for foreign exchange.
- The gaming division drove performance with a 32% increase in net sales and a 55% rise in adjusted EBITDA, supported by the integration of Hutch.
- MTG acquired New Zealand-based developer Ninja Kiwi for 1,217 million SEK to secure the Bloons intellectual property and expand its tower defense portfolio.
MTG Q1 2021 Interim Report
Modern Times Group achieved a 9% increase in net sales during the first quarter of 2021, reaching SEK 1,011 million.
- Modern Times Group achieved a 9% increase in net sales to SEK 1,011 million in Q1 2021, driven by an 8% organic growth rate in the gaming vertical.
- The gaming segment's performance was bolstered by the strategic acquisitions of Hutch and Ninja Kiwi, helping to offset an 18% decline in the esports division caused by pandemic-related event cancellations.
- Adjusted EBITDA improved to SEK 100 million, supported by internal cost-saving measures and the strength of the gaming portfolio.
Modern Times Group Q4 2020 Financial Results
Modern Times Group concluded the 2020 fiscal year with record financial results and significant strategic expansion within its gaming and esports verticals.
- MTG improved its adjusted EBITDA margin to 18% in Q4 2020, a significant increase from 7% in the same period of 2019.
- The company raised 2,549 million SEK through an oversubscribed rights issue to fund the acquisition of Hutch and the formation of the GamingCo holding company.
- The esports vertical achieved positive adjusted EBITDA for the first time in Q4 2020, driven by a shift to online master-level events in the absence of live tournaments.
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.
Stunning UK Success Story
The acquisition of mobile racing game developer Hutch Games by Modern Times Group for $375 million serves as a primary case study for the efficacy of early-stage public investment in the United Kingdom’s video game sector.
- Mobile racing game developer Hutch Games was acquired by Modern Times Group for $375 million, consisting of $275 million in up-front consideration and $100 million in expected earn-out payments.
- Hutch Games received early-stage financial support in 2012 through the UK Games Fund’s predecessor, the Prototype Fund.
- The UK Games Fund operates as a publicly funded, not-for-profit Community Interest Company (CIC) focused on providing grants and peer-to-peer support to early-stage game developers.
5 Things: About Autonomous Teams
Hutch has achieved significant commercial success, reaching an $80 million annual run rate and 300 million lifetime players, by fundamentally restructuring its operations around autonomous, cross-functional teams.
- Hutch achieved an $80 million annual run rate and 300 million lifetime players by restructuring operations into autonomous, cross-functional teams that hold full accountability for both creative and financial outcomes.
- Decentralizing decision-making power from management to developers serves as the primary engine for scaling the studio while maintaining consistent profitability.
- Effective Agile implementation at Hutch prioritizes psychological safety and developer empowerment over rigid processes, with leadership acting as servants to self-organizing teams.
Hutch: Fantastic Mistakes and How to Avoid Them
Hutch, a mobile-first game studio founded in 2011, transitioned from a console-focused development background to a profitable free-to-play business model by embracing lean development and iterative validation.
- Hutch transitioned from console development to a profitable free-to-play model by treating all design decisions as testable assumptions rather than fixed creative choices.
- The studio mitigates financial risk by prioritizing 'viable' products over 'minimum' ones, ensuring concepts are validated against live player data before full-scale production.
- Early titles like Smash Bandits failed due to a lack of market validation and a mismatch between skill-based gameplay and free-to-play monetization, whereas later titles like Top Drives succeeded by limiting innovation to specific, justified areas.