MTG Q3 2021 Interim Report

Modern Times Group achieved substantial financial growth during the third quarter of 2021, characterized by a 58 percent year-over-year increase in net sales to SEK 1,438 million. This performance marks a successful transition toward a more diversified portfolio, underpinned by a return to profitability with an EBIT of SEK 95 million and an adjusted EBITDA of SEK 306 million. The organization’s strategic focus remains centered on aggressive expansion within the mobile gaming sector, complemented by a steady recovery in the esports vertical, which recorded a 53 percent increase in net sales as the industry prepared for the resumption of live-audience events.

The primary driver of this expansion was the integration of key acquisitions, most notably Hutch, Ninja Kiwi, and the Indian mobile developer PlaySimple. The acquisition of PlaySimple, finalized for an upfront consideration of SEK 3,090 million, serves as a cornerstone of the current growth strategy, facilitating significant synergies in ad monetization and user acquisition. These investments contributed to a 59 percent rise in gaming net sales to SEK 1,081 million and bolstered the group’s pro forma organic growth to 16 percent. Consequently, the company’s goodwill increased to SEK 10,652 million, reflecting the substantial scale added to the gaming segment.

While the company maintains a robust growth trajectory, the financial structure reflects the costs associated with this rapid consolidation. Net debt reached SEK 950 million by the end of the quarter, primarily due to the financing requirements of the PlaySimple transaction. Despite this leverage, the overall financial position remains stable, supported by strong operational performance across both gaming and esports segments. The results validate the effectiveness of the current acquisition-led strategy in building a diversified, high-growth digital entertainment enterprise.