Modern Times Group Q1 2017 Interim Report

Modern Times Group achieved a strong financial performance during the first quarter of 2017, characterized by an 8% organic sales growth and a 10.5% increase in total net sales to 4,228 million SEK. This expansion was primarily fueled by robust results within the Nordic and International entertainment segments. While the group’s operating margin remained relatively stable at 4.3%, operating profits rose by 15% compared to the previous year, reflecting a successful execution of the company’s core business strategies.

The organization is currently undergoing a significant strategic transformation, prioritizing long-term growth in digital and interactive sectors. By divesting non-core assets in the Czech Republic and the Baltics, the company is reallocating capital toward high-growth areas such as Nordic streaming, online gaming, and esports. A notable milestone in this transition is the acquisition of a majority 51% stake in InnoGames. Although the esports division, MTGx, experienced a 24% organic sales growth, it reported an operating loss of 88 million SEK, a result of intentional, aggressive investment in global event expansion and infrastructure.

Geographically focused on Nordic and international markets, the company maintains a stable financial position with a net debt of 2,439 million SEK. Management has demonstrated confidence in the group’s trajectory by proposing an ordinary cash dividend of 12.00 SEK per share. By standardizing key performance indicators such as EBITDA and return on capital employed, the group ensures transparency in its financial reporting as it pivots away from traditional media toward a digital-first business model. This shift underscores a commitment to capturing market share in the rapidly evolving global gaming and streaming landscapes.