Modern Times Group Q1 2022 Investor Presentation

Key insights

6 takeaways

01
Modern Times Group has transitioned into a pure-play gaming company following the $1 billion divestment of ESL Gaming.See it on page 3
02
Q1 2022 revenue reached SEK 1,357 million with an adjusted EBITDA of SEK 342 million, representing a 10% pro forma year-over-year growth rate.See it on page 5
03
The company maintains a user base of 35 million monthly active users and 7 million daily active users across its studio portfolio, which includes InnoGames, PlaySimple, and Hutch.See it on page 9
04
Management plans to return at least 40% of the net proceeds from the ESL Gaming sale to shareholders.See it on page 3
05
Strategic priorities for the remainder of the year include scaling new titles like Rise of Cultures, implementing a centralized business intelligence platform, and expanding into blockchain gaming.See it on page 11
06
The company is currently prioritizing aggressive investment in user acquisition and marketing to maintain growth that outpaces the broader gaming market.See it on page 13

Summary

Modern Times Group’s Q1 2022 investor presentation details the company’s strategic transition into a pure-play gaming entity following the divestment of ESL Gaming for $1 billion. This shift marks a pivotal moment for the organization, which now focuses exclusively on its mobile and midcore gaming portfolio. The company reported total revenues of SEK 1,357 million and an adjusted EBITDA of SEK 342 million for the quarter, reflecting a 10% pro forma year-over-year growth rate that outpaces broader market performance.

The company’s operational success is driven by a diverse portfolio of gaming studios, including InnoGames, PlaySimple, and Hutch, which leverage a mix of in-app purchases and advertising revenue. Key performance indicators show strong user engagement, with monthly active users reaching 35 million and daily active users at 7 million. While the company maintains stable profitability, it is currently prioritizing aggressive investment in user acquisition and marketing to scale new titles, such as Rise of Cultures, and to integrate a unified operating model across its various studios.

Looking ahead, the company expects to maintain a growth trajectory that exceeds the overall gaming market. Management anticipates that the pro forma growth and adjusted EBITDA margins observed in the first quarter will serve as a baseline for the full fiscal year. Strategic initiatives for the remainder of the year include the implementation of a centralized business intelligence platform, the expansion of blockchain gaming capabilities, and the continued optimization of cross-promotion activities across its global studio network. The divestment of ESL Gaming has provided a robust cash position, with plans to return at least 40% of the net proceeds to shareholders.