MTG Q3 2017 Financial Results

Modern Times Group (MTG) demonstrated significant financial momentum during the third quarter of 2017, characterized by a strategic pivot from a traditional national broadcaster toward a global digital entertainment provider. The company achieved 7% organic sales growth and an 83% increase in profit compared to the same period in the previous year. This performance was supported by broad-based gains across Nordic Entertainment, International Entertainment, and MTG Studios, alongside a reduction in losses within the MTGx digital division, which benefited from the consolidation of InnoGames.

Operational highlights underscore the success of the company’s digital transformation efforts. Viaplay served as a primary driver for Nordic Entertainment, while MTGx experienced a 49% organic sales increase in the esports segment. The company also advanced its portfolio restructuring by finalizing the acquisition of Kongregate and completing the divestment of its Baltic businesses. Concurrently, a comprehensive cost transformation program remained on track, with an estimated annual savings run-rate of SEK 575 million by the end of the quarter, keeping the firm well-positioned to meet its full-year restructuring targets.

Looking ahead, the company maintains a positive outlook for its continued operations, projecting sustained growth in sales and profits for the Nordic Entertainment division. The digital strategy remains aggressive, with expectations for esports to maintain over 40% organic growth in the second half of the year and for the MTGx division to achieve its first quarterly profit in the fourth quarter of 2017. Despite potential minor write-downs in accounts receivable, the overall financial trajectory reflects a successful transition toward high-growth digital content and global distribution models.