MTG Q1 2022 Interim Report

MTG successfully completed its strategic transition into a pure-play gaming entity during the first quarter of 2022, marked by the significant divestment of its esports vertical, ESL Gaming, to Savvy Gaming Group for an enterprise value of 9,723 million SEK. This structural shift underscores a commitment to mobile gaming, which now accounts for 70 percent of total sales. While the company reported a 77 percent increase in net sales to 1,357 million SEK and an 88 percent rise in adjusted EBITDA to 342 million SEK, these figures reflect the impact of recent acquisitions and the consolidation of new gaming assets.

Despite the robust growth in daily and monthly active users, the company faced headwinds as organic sales declined by 9 percent. This contraction is attributed to the broader post-pandemic normalization of the gaming market and a decrease in the popularity of idle game titles. Furthermore, while operational performance improved, the group recorded a net loss of 315 million SEK for the quarter, a result heavily influenced by substantial financial items and tax-related costs associated with the organizational restructuring.

Looking forward, the company intends to leverage the proceeds from the ESL Gaming sale to balance shareholder returns with aggressive reinvestment strategies. Plans are in place to distribute at least 40 percent of the net divestment proceeds to shareholders, while the remaining capital will be directed toward user acquisition and the development of new game launches. By focusing on its core mobile gaming portfolio, the organization aims to stabilize its organic growth trajectory and navigate the shifting landscape of the global gaming industry.