FinancialModern Times Group
Annual Report 2018: Shaping the Future of Entertainment
1 Jan 201894 pages~270 min full read
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.
See it on page 8The company completed the separation of Nordic Entertainment Group (NENT) in 2018, which subsequently listed on Nasdaq Stockholm in March 2019.
See it on page 6Financial performance showed growth with net sales rising 12–13% to SEK 19.7 billion and operating income increasing 24% to SEK 1.57 billion.
See it on page 17Despite operational growth, the company reported a net debt of SEK 2.58 billion (1.3x EBITDA) and opted not to pay a dividend, contributing to an 11% negative total shareholder return and a 15% decline in B-share price.
See it on page 90Balance sheet strength improved by year-end, with total assets reaching SEK 20.3 billion and equity totaling SEK 7.0 billion.
See it on page 41Corporate governance and capital management remained conservative, with executive remuneration tied to performance targets and a SEK 4 billion syndicated credit facility maintained with only SEK 200 million drawn.
See it on page 67In 2018 MTG delivered a robust financial rebound while executing a decisive strategic shift toward esports and digital‑video assets. Net sales rose 12‑13 % to SEK 19.7 billion and operating income increased 24 % to SEK 1.57 billion, lifting the operating margin to roughly 8 %. Net profit from continuing operations reached SEK 1.17 billion, yet net debt grew to SEK 2.58 billion (1.3 × EBITDA) and the board elected not to pay a dividend, resulting in a 15 % fall in B‑share price and an overall –11 % total shareholder return. Balance‑sheet strength improved, with total assets climbing to SEK 20.3 billion and equity to SEK 7.0 billion, while retained earnings stood at SEK 3.0 billion.
The year culminated in the separation of MTG from Nordic Entertainment Group (NENT), whose shares were listed on Nasdaq Stockholm in March 2019. Post‑split, MTG accelerated its pivot into the esports ecosystem, acquiring ESL, DreamHack, InnoGames and Kongregate, and divesting non‑core holdings such as Trace Partners. These moves positioned the company to capture growth in online gaming and competitive entertainment.
Corporate governance adhered to Swedish law and the Swedish Corporate Governance Code. The board, composed of six non‑executive directors, met 14 times and operated through remuneration, audit and risk committees. Executive remuneration remained tied to pre‑determined short‑term and long‑term performance targets, with STI capped at 100 % of fixed salary. Internal‑control and risk‑management frameworks were deemed effective and compliant with IFRS and Nasdaq requirements.
Accounting practices followed IFRS, recognising goodwill on acquisitions, applying the equity method for joint ventures, and translating foreign subsidiaries into SEK. A widening deferred‑tax deficit and a tax‑loss carry‑forward of SEK 111 million were disclosed. Capital was underpinned by a SEK 4 billion syndicated facility, of which only SEK 200 million was drawn. Overall, the 2018 results illustrate MTG’s financial resilience, a clear strategic reorientation toward esports, and solid governance and risk controls across its European‑centric media operations.
