Modern Times Group Q2 2022 Interim Report

Modern Times Group achieved a robust financial performance during the second quarter of 2022, characterized by a 7% pro forma net sales growth and an adjusted EBITDA margin of 26%. This success was largely driven by the successful integration of recent acquisitions, specifically Ninja Kiwi and PlaySimple, alongside disciplined marketing expenditures that outperformed initial projections. The company reported a consolidated EBIT of SEK 158 million and an adjusted EBITDA of SEK 357 million, reflecting a stable operational foundation despite minor seasonal fluctuations in user engagement and broader post-pandemic market adjustments.

A central development during this period was the divestment of ESL Gaming for an enterprise value of USD 1.05 billion. This transaction generated a capital gain of SEK 6.85 billion and resulted in a total net income of SEK 6.25 billion for the quarter. Bolstered by this liquidity, the company maintains a strong cash position of SEK 8.18 billion. In alignment with its commitment to shareholder value, the organization initiated plans to return at least 40% of these proceeds through share redemption and buyback programs, while simultaneously reserving capital for future strategic acquisitions.

Moving forward, the company is firmly committed to a pure-play gaming strategy, focusing on the global mobile-first market and emerging blockchain initiatives. By leveraging its proprietary Flow Platform ecosystem, the organization aims to drive long-term growth and consolidate its presence in the gaming sector. This strategic pivot, supported by a healthy balance sheet and a clear focus on selective M&A, positions the group to navigate the evolving digital landscape while maintaining its commitment to delivering consistent returns to its shareholders.