ReportModern Times Group
Annual Report 2019: Shaping the Future of Entertainment
103 pages~250 min full read
Key insights
8 slides
What changed
MTG split into Nordic Entertainment and new MTG in March 2019.
It is impossible to reflect on 2019 without first commenting on the split of MTG into two companies in March.
Portfolio moves
MTG divested Nova Broadcasting Group and Zoomin in 2019.
MTG divested Nova Broadcasting Group in Bulgaria for EUR 185 million in January 2019 and Zoomin in October 2019.
Esports results
Esports sales rose to SEK 1,712 million but EBIT was negative.
MTG's esports vertical, comprising ESL and DreamHack, saw external sales of SEK 1,712 million in 2019, up from SEK 1,515 million in 2018.
Gaming results
Gaming sales increased to SEK 2,531 million with positive EBIT.
The gaming vertical generated SEK 2,531 million in external sales in 2019, an increase from SEK 2,296 million in 2018.
Strategic review
MTG announced savings, redundancy costs, and impairment charges in 2019.
MTG announced annual savings, redundancy costs, and impairment charges in 2019 as part of a strategic review and evaluation of its gaming portfolio.
Debt reduction
MTG reduced total borrowings to zero by December 31, 2019.
MTG's total borrowings were reduced to zero by December 31, 2019, from SEK 3,679 million at the end of 2018.
China expansion
HUYA joint venture negotiations were mutually terminated in January 2020.
Negotiations for a strategic joint venture with HUYA Inc. for China esport expansion and an investment in ESL were mutually terminated in January 2020.
2019 strategy
MTG's 2019 strategy focused on profitable growth in esports and gaming.
MTG's 2019 strategy focused on profitable growth in esports and gaming, driven by the ESL Pro Tour launch, Kongregate's revised strategy, and Innogames' mobile revenue optimization.
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Summary
Corporate responsibility and sustainability priorities are covered in MTG’s Annual Corporate Responsibility Report, published 19 S EGMENTAL PERFORMANCE 31 Other Group Information 34 Financial Policies and Risk Management 36 Governance and Responsibilities 41 Internal Control Report 101 ALTERNATIVE PERFORMANCE It’s impossible to reflect on 2019 without first commenting on the split of MTG into two companies in March – Nordic Enter- tainment and new MTG.
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