MTG Q2 2021 Financial Results

Key insights

7 takeaways

01
MTG achieved a 15% increase in net sales at constant currencies in Q2 2021, reaching a total of SEK 1,198 million.See it on page 12
02
The gaming vertical reported pro forma sales of SEK 1,169 million, representing an 8% year-over-year increase driven by mobile acquisitions like Ninja Kiwi and Hutch.See it on page 2
03
MTG expanded its gaming portfolio through the acquisition of PlaySimple, a leader in the word games genre, as part of its ongoing 'Buy & Build' strategy.See it on page 2
04
The esports vertical returned to growth with an 18% increase in revenue at constant currencies, supported by new partnerships with Intel, DHL, and Coinbase.See it on page 9
05
The company’s gaming portfolio maintains strong engagement with 6.1 million daily active users and 31 million monthly active users.See it on page 4
06
MTG is actively developing new titles, including Rise of Cultures and Lost Survivors, to support long-term monetization and player retention.See it on page 5
07
Adjusted EBITDA was impacted by strategic investments in digital platforms and esports products intended to prepare the company for the normalization of live events.See it on page 8

Summary

The second quarter 2021 financial results for MTG demonstrate a period of strategic expansion and operational growth, characterized by a dual-focus strategy in the gaming and esports verticals. The company achieved a 15% increase in net sales at constant currencies, totaling SEK 1,198 million. This growth was primarily driven by the successful integration of mobile gaming acquisitions, including Ninja Kiwi and Hutch, alongside robust performance in the esports segment.

The gaming vertical remains a core pillar of the business, reporting pro forma sales of SEK 1,169 million, an 8% increase compared to the previous year. The company continues to execute a Buy & Build strategy, highlighted by the acquisition of PlaySimple, a leader in the word games genre. The gaming portfolio, which spans casual to midcore titles, maintains strong engagement metrics with 6.1 million daily active users and 31 million monthly active users. Furthermore, the company is actively developing a pipeline of new titles, such as Rise of Cultures and Lost Survivors, to sustain long-term monetization and retention.

The esports vertical returned to positive revenue growth, increasing 18% at constant currencies. While adjusted EBITDA for the group was impacted by strategic investments in esports products and digital platforms, these expenditures are intended to diversify the offering and prepare for the anticipated normalization of live events. The segment secured several high-profile brand partnerships, including agreements with Intel, DHL, and Coinbase, signaling strong market confidence. Despite a decrease in total cash flow from operations due to incentive program payments and acquisition-related costs, the company maintains a solid financial foundation, positioning itself as a scaled player capable of leveraging operational synergies across its diversified digital entertainment assets.