MTG Q2 2021 Interim Report

Modern Times Group achieved a 15 percent increase in net sales at constant currencies during the second quarter of 2021, signaling a period of aggressive expansion within the global gaming and esports sectors. This growth was primarily fueled by a strategic "Buy & Build" acquisition model, which saw the integration of companies such as Ninja Kiwi, PlaySimple, and Hutch into the corporate portfolio. These acquisitions were instrumental in driving gaming net sales to SEK 810 million, effectively offsetting a 14 percent organic decline in that segment. Total net sales for the quarter reached SEK 1,198 million, reflecting a robust effort to scale operations despite challenging year-over-year comparisons.

Financial performance remained tempered by significant strategic investments and acquisition-related costs, resulting in a flat adjusted EBITDA of SEK 155 million and a net loss of SEK 11 million for the period. While the esports vertical recorded a 10 percent revenue increase, the company continued to prioritize long-term market positioning over immediate profitability. By the end of June 2021, these capital activities contributed to a strengthened equity position of SEK 9,604 million.

Looking ahead, the company maintains a focus on portfolio diversification and operational recovery. Management anticipates a transition back to live-audience esports events by the end of 2021, which is expected to revitalize engagement levels. The organization continues to refine its governance and financial reporting frameworks to support this ongoing transition, ensuring transparency as it navigates the integration of its newly acquired assets and prepares for future growth cycles within the digital entertainment landscape.