MTG Q4 2019 Financial Results

MTG’s financial results for the fourth quarter of 2019 demonstrate a period of solid operational growth, characterized by a 15% increase in net sales to SEK 1,163 million and an adjusted EBITDA of SEK 84 million, up from SEK 43 million in the prior-year period. The company’s performance was driven by two primary pillars: a 15% rise in esports revenue and a 17% increase in gaming vertical sales. The esports segment benefited from a 21% growth in owned and operated properties, bolstered by the expansion of the ESL Pro Tour and successful standalone events, such as the IEM Beijing 2019 tournament.

Within the gaming vertical, InnoGames maintained strong momentum through the continued success of its established portfolio, particularly Forge of Empires, while Kongregate achieved double-digit improvements in net sales and adjusted EBITDA, supported by newer titles like Idle Frontier. Despite these gains, the company reported a net loss from continuing operations of SEK 207 million, influenced by adjustments and increased amortization of intangible assets.

A central focus during this period was the initiation of a strategic review concerning the gaming vertical, including the VC fund and InnoGames. This ongoing evaluation aims to maximize shareholder value, with potential outcomes ranging from the formation of a joint venture to a transition toward becoming a global pure-play esports company. Looking toward 2020, the company has outlined three primary growth levers: expanding the mobile-first game pipeline, professionalizing commercial operations through partnerships with entities like Nielsen, and further integrating the ESL Pro Tour. These efforts reflect a broader commitment to capitalizing on the global rise of esports and mobile gaming.