MTG Q3 2019 Financial Results

MTG’s financial results for the third quarter of 2019 demonstrate a period of strategic growth and operational development across its two primary verticals, esports and gaming. The company reported a 4% increase in net sales to SEK 1,066 million, with a 6% growth rate observed within its core business segments. Adjusted EBITDA for the quarter reached SEK 19 million, reflecting a margin of 1.8%. These results were achieved despite a challenging comparison to the previous year, including the operation of one fewer Master-level esports property.

The esports division served as a primary growth driver, recording a 12% increase in net sales. This performance was bolstered by a 20% rise in sponsorship revenue for major events such as ESL One New York. To further professionalize the sector, the company entered a measurement agreement with Nielsen to standardize industry metrics and enhance sponsorship valuation. Simultaneously, the gaming vertical maintained stable performance, highlighted by a 7% increase in average revenue per daily active user (ARPDAU). Mobile gaming revenue reached record levels, supported by marketing investments in titles like Forge of Empires and the acquisition of Bit Heroes.

Looking forward, the company has initiated a strategic review of its gaming vertical to maximize shareholder value, which may include the formation of a joint venture or a transition into a pure-play esports entity. As part of this strategic pivot, the company is exploring a potential listing in the United States to capitalize on the region's significant esports market. Additionally, management is considering an operational efficiency program to streamline headquarters functions. The company maintains a full-year sales ambition of 8–12% organic growth, with an adjusted EBITDA margin target in the mid-single digits.