Nova

Annual Report 2019: Shaping the Future

Modern Times Group (MTG) used 2019 to reposition itself as a pure-play esports and gaming company, executing a split that created a dedicated esports business and preparing a subsequent separation into two listed entities.

• MTG successfully repositioned as a pure-play esports and gaming company in 2019, executing a strategic split and preparing for a separation into two listed entities.
• The company achieved a significant financial turnaround, with net income surging to SEK 2,285 million from SEK 471 million in 2018 and net sales increasing by 10%.
• MTG eliminated all external debt, reducing borrowings from SEK 3.68 billion to zero, while funding its transformation through the SEK 1.8 billion sale of Nova and other divestments.

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.

MTG Q2 2019 Interim Report

MTG underwent a significant structural transformation during the second quarter of 2019, pivoting its core business model to focus exclusively on global digital entertainment through esports and gaming.

• MTG completed a strategic pivot to a pure-play digital entertainment company by divesting Nova Broadcasting Group and distributing Nordic Entertainment Group shares.
• Net sales grew 11% to SEK 1,117 million in Q2 2019, supported by a 19% increase in gaming revenue and 15% growth in the esports segment.
• The company lowered its full-year organic growth guidance to 8–12% due to slower-than-expected monetization of esports media rights.

Modern Times Group Q1 2019 Interim Report

Modern Times Group successfully transitioned into a pure-play digital entertainment and gaming entity during the first quarter of 2019, following the formal demerger of Nordic Entertainment Group.

Frontier Developments IFRS Report and Accounts 2012

Frontier Developments achieved a significant financial turnaround during the fiscal year ending May 31, 2012, transitioning from a loss of £1.422 million in the previous year to a profit of £1.398 million.

Annual Report 2011

The 2011 Modern Times Group (MTG) Annual Report presents a comprehensive assessment of the company’s financial performance, strategic direction, and governance during a year of record revenue but substantial impairment losses.

• MTG reported a net loss of SEK 1.289 billion in 2011, driven primarily by a SEK 2.998 billion write-down of the Nova business in Bulgaria and related goodwill impairments.
• Despite the net loss, the company achieved record financial performance with net revenue of SEK 13.5 billion, a 6% increase at constant exchange rates, and an underlying operating profit of SEK 2.5 billion.
• Growth was led by the pay-TV segment, which saw a 13% increase and helped push the Nordic premium subscriber base to over one million.

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.

MTG Q3 2018 Financial Results

The third quarter of 2018 financial results for Modern Times Group (MTG) highlight a period of strategic transition and solid operational performance.

• MTG is executing a corporate split into two independent entities: a digital-focused company (esports and online gaming) and Nordic Entertainment Group (broadcasting, production, and streaming).
• The company achieved 3% organic sales growth and a 28% increase in profit during Q3 2018, supported by disciplined cost management.
• The MTGx division, covering esports and gaming, reached profitability and achieved double-digit organic sales growth, marking a significant turnaround from the previous year's EBIT loss.

Modern Times Group Q1 2019 Financial Results

Modern Times Group’s first quarter of 2019 financial results demonstrate a strategic transition following the successful split and listing of the NENT Group.

• Modern Times Group reported a 3.9% increase in total sales for Q1 2019, though organic sales saw a 1.7% decline.
• The esports division achieved a 9.6% organic sales increase, supported by 230 million daily unique viewers and 1.2 million peak viewers for the Intel Extreme Masters.
• The sale of Nova in April 2019 generated SEK 1.8 billion in cash, strengthening the balance sheet for future acquisitions and venture capital investments.

MTG Q3 2019 Interim Report

Modern Times Group underwent a significant structural transformation during the third quarter of 2019, pivoting toward a specialized focus on esports and digital gaming.