Modern Times Group

The presentation delivers a quarterly performance update and revised full‑year outlook for a mid‑core and casual gaming group, emphasizing the impact of organic growth and the recent integration of Plarium. In Q3 2025 the company recorded SEK 2.987 billion in net sales, a 15 % year‑over‑year organic increase and a 126 % rise in constant‑currency revenue driven largely by the Plarium consolidation. Adjusted EBITDA reached SEK 675 million, translating to a 23 % margin, while unlevered EBITDA margin stood at 60 % and free cash flow amounted to SEK 404 million, supporting a 60 % cash‑conversion rate.

User‑acquisition spend rose sharply, with original studios increasing spend by 37 % and total group spend climbing 120 % on a constant‑currency basis, now representing roughly 37 % of revenue. Core metrics such as ARPDAU improved quarter‑over‑quarter, notably on the Snowprint title, while daily active users remained broadly flat after accounting for the Kongregate divestment and Plarium acquisition. The franchise portfolio showed double‑digit growth in PlaySimple, Warhammer 40,000: Tacticus, and a strong performance from RAID: Shadows Legends anchored by the Teenage Mutant Ninja Turtles IP.

Based on these results the company raised its FY 2025 guidance, targeting 7‑9 % organic revenue growth and total revenue of SEK 11.4‑11.7 billion, with an adjusted EBITDA margin of 21‑24 %. The outlook underscores confidence in continued scaling of live‑ops, new‑title launches and disciplined investment in user acquisition.

Modern Times Group MTG AB reported significant financial expansion for the second quarter of 2025, primarily driven by the strategic consolidation of Plarium and robust organic performance. Net sales increased by 117% in constant currencies year-over-year, reaching 2,911 SEKm. While reported sales growth was slightly tempered by a 14% negative foreign exchange impact, the company achieved 9% organic growth. This organic momentum was fueled by key titles including Warhammer 40,000: Tacticus, F1 Clash, Heroes of History, and the Word Games portfolio.

Profitability remained strong with an adjusted EBITDA of 640 SEKm, representing a 50% increase year-over-year. The company maintained a healthy adjusted EBITDA margin of 22%, even as it continued to invest in growth initiatives and marketing. Operational cash flow for the quarter stood at 325 SEKm, contributing to a last-twelve-months free cash flow of 1,045 SEKm. Despite a significant earnout payment of 1,074 SEKm during the period, the group maintained a stable financial leverage ratio of 1.63x net debt to adjusted EBITDA.

User metrics showed positive trends, with Daily Active Users (DAU) rising to 10 million, influenced by the Plarium acquisition and the geographic expansion of Word Games. Average Revenue Per Daily Active User (ARPDAU) also saw growth, reaching 4.5 SEK. Looking ahead, the group maintained its full-year 2025 outlook, projecting organic sales growth between 3% and 7% and an adjusted EBITDA margin between 21% and 24%. The strategy remains focused on disciplined marketing investments to drive organic growth across both new and established gaming franchises.

Modern Times Group (MTG) reports significant financial expansion for the first quarter of 2025, primarily driven by the strategic consolidation of Plarium. Net sales reached SEK 2,557 million, representing a 79% increase in constant currencies year-over-year. While much of this growth is attributed to the acquisition, the company also maintained a 6% organic growth rate. The long-term performance remains robust, with a 4.75-year annualized compound annual growth rate (CAGR) of 18% for reported revenue and 28% for adjusted EBITDA.

The integration of Plarium has fundamentally shifted the revenue mix and user base. Strategy and Simulation now represent the largest franchise segment, contributing SEK 1,066 million in the quarter, followed by Word Games and Tower Defense. In-app purchases (IAP) have increased to 76% of total revenue, up from 61% in the prior year, while advertising revenue (IAA) has decreased proportionally. Daily Active Users (DAU) rose to 9 million, influenced by both the Plarium acquisition and the localized expansion of Word Games, though Average Revenue Per Daily Active User (ARPDAU) saw a slight decline to SEK 3.1.

Financial health remains stable with a reported adjusted EBITDA of SEK 616 million, yielding a 24% margin. This was achieved despite scaled marketing investments for new titles. The group reported a free cash flow of SEK 143 million for the quarter and maintains a net debt position of SEK 5,064 million, resulting in a financial leverage ratio of 1.66x. Looking ahead to the full year 2025, the outlook anticipates organic sales growth between 3% and 7% and a total reported adjusted EBITDA margin between 21% and 24%. Management intends to focus on the disciplined scaling of new titles and geographical expansion to sustain this momentum.

Modern Times Group (MTG) reported a mixed financial performance for the first quarter of 2023, characterized by strong results in specific gaming franchises despite an overall decline in organic revenue. Net revenues reached SEKm 1,306, representing a 4% decrease year-on-year and an 11% organic decline. This downturn was primarily attributed to challenging year-on-year comparisons for InnoGames, which benefited from a post-pandemic boost in early 2022, and a non-recurring platform incentive payment received by PlaySimple in the previous year.

The company’s portfolio showed divergent trends across its core segments. The Word Games franchise, led by PlaySimple, remained the strongest performer for the fifth consecutive quarter, while Ninja Kiwi’s Tower Defense IP demonstrated continued resilience. Conversely, the Strategy & Simulation and Racing segments faced difficulties, particularly in attracting new players during the first half of the quarter. However, management noted signs of stabilization for InnoGames and gradual improvements in Strategy & Simulation performance toward the end of the period.

Financial health remains stable with an adjusted EBITDA of SEKm 263 and a margin of 20%. While the reported margin was lower than the 25% seen in Q1 2022, the underlying margin increased slightly on a like-for-like basis when adjusting for the prior year’s platform bonuses. User metrics showed a slight decline in Monthly Active Users (MAU) to 29.4 million, though Daily Active Users (DAU) remained relatively stable at 6.4 million.

MTG maintains a robust balance sheet with a strong cash position and a total debt and earn-out capacity of approximately SEK 6 billion. This liquidity is intended to support future M&A activities and shareholder value creation. Despite a negative free cash flow after earn-out payments of SEKm 329 for the quarter, the company reported a 51% cash conversion rate from operations, signaling a solid foundation for its ongoing portfolio diversification strategy.

The 2019 corporate‑responsibility effort positions Modern Times Group (MTG) as a dedicated gaming and esports holding that integrates environmental, social and governance (ESG) considerations into its core strategy. By framing responsible practice as a source of competitive advantage for millennial and Gen Z audiences, the company seeks to mitigate material risks—discrimination, event security, exploitation of minors, corruption, occupational and mental‑health concerns, irresponsible marketing and gaming addiction—while driving profitability.

A comprehensive materiality analysis informed a three‑tier priority pyramid that places health‑and‑well‑being and gender equality at its apex. Nine new group policies, including a Code of Conduct, whistle‑blower, anti‑bribery and data‑protection frameworks, achieved a 94 % employee

Modern Times Group (MTG) used 2019 to reposition itself as a pure‑play esports and gaming company, executing a split that created a dedicated esports business and preparing a subsequent separation into two listed entities. The strategic review outlined a seven‑point plan focused on organic growth, partnership scaling, ecosystem dominance, long‑term game‑as‑a‑service models, cross‑portfolio synergies, continuous innovation and disciplined capital allocation. This transformation was financed by the sale of Nova for SEK 1.8 billion, the divestment of Zoomin, and the capital gain generated by distributing shares of the newly listed Nordic Entertainment Group.

Financially, the year marked a dramatic turnaround. Net sales rose 10 % overall, with esports sales increasing 13 %, while net income surged to SEK 2,285 million from SEK 471 million the prior year. Shareholders’ equity climbed to SEK 5.565 billion, and the group eliminated all external borrowings, reducing debt from SEK 3.68 billion to zero. Asset levels contracted sharply, with equipment falling from SEK 859 million to SEK 212 million, and the net financial position shifted to a SEK ‑28 million deficit after a previous surplus. The board adopted a zero‑dividend policy and reinforced a “buy‑and‑build” approach, taking majority stakes in esports firms while retaining founders as minority shareholders.

Corporate governance remained robust, with full compliance to Swedish legislation and Nasdaq Stockholm rules. The board, composed of five re‑elected non‑executive directors, met twelve times and oversaw the split, the gaming review and risk management through dedicated committees and a GRC function. Executive remuneration was benchmarked against independent advisors, capped at 125 % of base salary for short‑term incentives and 200 % for long‑term incentives, and incorporated claw‑back provisions and ESG metrics. Overall, the 2019 period reflects MTG’s decisive shift toward an esports‑centric model, underpinned by strong financial performance, disciplined capital management, and rigorous governance.

The 2018 corporate‑responsibility overview for Modern Times Group (MTG) reflects a year of strategic realignment following the spin‑off of its Nordic Entertainment and Studios businesses into the newly listed Nordic Entertainment Group. The core thesis is that MTG’s renewed focus on esports, gaming and broader digital ventures can be pursued responsibly through four pillars—media responsibility, social impact, business ethics and environmental care—underpinned by materiality analyses for both entities and a suite of stakeholder‑driven priorities such as gender diversity, inclusion, GDPR compliance and the protection of minors.

Financially, MTG reported net sales in the range of 15‑20 billion SEK and achieved an 89 % completion rate for mandatory ethics e‑learning. Risk management was strengthened by publishing event‑security guidance adopted by eight of twenty‑one partners, and by prioritising attendee safety at esports tournaments. Social contributions included a $18 k donation to UCSF, multi‑million‑dollar fundraising for Save the Children and the Diabetes Foundation, and the launch of education programmes targeting young gamers. Governance was reinforced through board oversight, external audits and memberships in more than a dozen industry bodies—including the IGDA, Esports Integrity Coalition and MESA—facilitating continuous stakeholder engagement via surveys, focus groups and board‑level dialogues.

Environmental reporting showed a total carbon footprint of 25,215 t CO₂e, a 7 % year‑on‑year increase, while energy intensity fell sharply from 66 GJ per employee in 2016 to 40 GJ in 2018. Scope 3 emissions from events are now being captured, and no fines were recorded for direct energy use,

In 2018 MTG delivered a robust financial rebound while executing a decisive strategic shift toward esports and digital‑video assets. Net sales rose 12‑13 % to SEK 19.7 billion and operating income increased 24 % to SEK 1.57 billion, lifting the operating margin to roughly 8 %. Net profit from continuing operations reached SEK 1.17 billion, yet net debt grew to SEK 2.58 billion (1.3 × EBITDA) and the board elected not to pay a dividend, resulting in a 15 % fall in B‑share price and an overall –11 % total shareholder return. Balance‑sheet strength improved, with total assets climbing to SEK 20.3 billion and equity to SEK 7.0 billion, while retained earnings stood at SEK 3.0 billion.

The year culminated in the separation of MTG from Nordic Entertainment Group (NENT), whose shares were listed on Nasdaq Stockholm in March 2019. Post‑split, MTG accelerated its pivot into the esports ecosystem, acquiring ESL, DreamHack, InnoGames and Kongregate, and divesting non‑core holdings such as Trace Partners. These moves positioned the company to capture growth in online gaming and competitive entertainment.

Corporate governance adhered to Swedish law and the Swedish Corporate Governance Code. The board, composed of six non‑executive directors, met 14 times and operated through remuneration, audit and risk committees. Executive remuneration remained tied to pre‑determined short‑term and long‑term performance targets, with STI capped at 100 % of fixed salary. Internal‑control and risk‑management frameworks were deemed effective and compliant with IFRS and Nasdaq requirements.

Accounting practices followed IFRS, recognising goodwill on acquisitions, applying the equity method for joint ventures, and translating foreign subsidiaries into SEK. A widening deferred‑tax deficit and a tax‑loss carry‑forward of SEK 111 million were disclosed. Capital was underpinned by a SEK 4 billion syndicated facility, of which only SEK 200 million was drawn. Overall, the 2018 results illustrate MTG’s financial resilience, a clear strategic reorientation toward esports, and solid governance and risk controls across its European‑centric media operations.

Modern Times Group (MTG) presented a comprehensive overview of its corporate responsibility performance for 2017, positioning itself as a global digital‑entertainment leader with approximately 3,700 employees and net sales of €16‑17 billion SEK. The report emphasizes MTG’s commitment to “media for good,” detailing initiatives that safeguard children through parental controls, audio‑description (covering 15 % of output) and subtitles (89 % of output), and noting a decline in broadcast‑compliance complaints to 49, with none upheld by Ofcom. Recognition of its children’s programming was underscored by a Kristallen award.

Diversity and inclusion formed a central pillar of the strategy, with the workforce representing 59 nationalities and achieving near‑gender parity in Sweden and Finland (48 % women). The company set a 50/50 gender‑balance target for 2020, yet disclosed a persistent gender‑pay gap—women earned 66‑67 % of men’s basic salary, and female representation fell to 20 % at senior‑executive levels. Employee engagement remained high, reflected in an 84 % satisfaction rate and an 88 % sense of pride, while turnover stood at 16.5 %, driven primarily by male departures.

Environmental performance revealed a 49.7 % increase in total greenhouse‑gas emissions versus 2016, largely attributable to the inclusion of MTGx operations and air travel, which accounted for roughly 70 % of emissions. Excluding air travel, emissions declined 12 % year‑on‑year, and overall energy consumption dropped from 71,782 GJ in 2015 to 51,459 GJ in 2017. The group’s external gaming arm, alongside its esports and digital‑entertainment divisions, contributed to a diversified portfolio spanning Europe and North America.

Independent assurance by Ethos International confirmed compliance with GRI Core “in‑accordance” standards, identifying minor calculation errors and recommending enhancements in materiality analysis, equality and diversity focus, supplier code enforcement, and HR system integration. Stakeholder surveys and user testing were highlighted as effective mechanisms for aligning responsibility initiatives with customer expectations.

Modern Times Group delivered its strongest results to date in 2017, posting net sales of SEK 17.5 billion—a rise of 8 % on an organic basis and 16.9 % reported—while operating income before items affecting comparability increased 19 % to SEK 1.264 billion. The performance generated a total shareholder return of 33 % and a record cash dividend of SEK 12.50 per share, representing roughly 95 % of net income. Core earnings were driven by the Nordic Entertainment segment, which contributed SEK 11.96 billion in sales with a 13.2 % operating margin, and a 19 % profit jump in International Entertainment, largely from the Nova/Trace businesses. The MTGx gaming division doubled its revenue to SEK 2.96 billion, reflecting 37 % organic growth, whereas MTG Studios saw modest top‑line growth but a 16 % decline in operating income. A goodwill impairment of SEK 688 million, primarily linked to Zoomin.TV, reduced operating income after comparability items to SEK 923 million.

The balance sheet strengthened after divesting Czech, Baltic and African operations, with total assets rising to SEK 19.3 billion and equity to SEK 5.18 billion; non‑controlling interests increased to SEK 1.39 billion following reclassifications. Financial ratios improved markedly, with the interest‑coverage ratio climbing to 19 times and the net‑debt/EBITDA ratio falling to 1.1 times. Acquisitions in 2017—51 % of InnoGames for SEK 801 million and 100 % of Kongregate for SEK 463 million—added SEK 1.24 billion of

The 2016 corporate responsibility effort positions MTG’s transformation around four pillars—media responsibility, social impact, business ethics and environmental care—grounded in a materiality analysis that consulted more than 400 internal and external stakeholders and identified content quality as the top issue. The strategy aligns with the UN Global Compact, particularly SDG 5 on gender equality, and sets measurable targets such as a 20 % reduction in energy use by 2020.

During the year MTG generated SEK 17.3 billion in net sales and SEK 1.35 billion in operating income while employing roughly 3,800 staff. The company secured inclusion in the Dow Jones Sustainability Index and RobecoSAM’s Sustainability Yearbook, and reported a 7 % decline in total greenhouse‑gas emissions, supporting its environmental ambition. A 20 % energy‑use cut is pursued alongside a modest 13 % share of locally produced content.

Social initiatives emphasized gender diversity through a fourth Women in Tech event, a “Women Up” leadership program for 30 high‑potential women, and internal role‑model promotion. Community programmes reached children in Bulgaria, Estonia and Latvia, covering obesity prevention, science outreach, adaptive sports, robotics and animal care. Governance was reinforced by a zero‑case record of confirmed corruption, a fully independent six‑member board, and a comprehensive data‑protection rollout that trained over 90 % of senior managers and prepared the organization for GDPR compliance.

Corporate‑giving fell sharply, with media‑time donations down 55 % and cash contributions reduced to KSEK 1 217, while volunteer hours dropped to 374. Assurance by Ethos International confirmed overall data accuracy, noting minor calculation errors and recommending stronger HR data management and deeper integration of CSR into acquisition strategy. The scope covers all fully controlled MTG operations, subsidiaries, leased facilities and the 50 %‑owned GES Media Holding, excluding pay‑TV channels on third‑party platforms and markets no longer served, such as Ghana, Hungary, Russia, Tanzania and Ukraine.

Modern Times Group’s 2016 annual report presents a comprehensive overview of the company’s transition toward a digital‑entertainment model and its financial outcomes for the fiscal year. The narrative emphasizes a strategic shift driven by aggressive acquisitions in esports and online video, which underpinned a 7 % increase in total net sales to SEK 17.3 billion and a rise in operating profit to SEK 1.35 billion, despite a modest decline in traditional profitability metrics such as return on equity, which fell to –2 %.

Key performance highlights include a 194 % surge in net sales for the MTGx digital‑video unit after acquiring Turtle Entertainment, Zoomin.TV, Splay and DreamHack, lifting its operating margin from 0.2 % to 4.4 %. Organic growth turned positive at +2.2 % following a –14.2 % contraction the prior year, driven by rapid expansion of esports events and leagues. The company recorded a SEK 95 million goodwill impairment on Zoomin.TV, while intangible assets grew by SEK 111 million. Credit‑risk exposure stood at SEK 3.1 billion, with all counterparties holding at least an S&P A rating and 85‑100 % of foreign‑currency programme cash flows hedged.

Governance disclosures detail a four‑member, unpaid Nomination Committee and a six‑member Board, alongside an Audit Committee that reviews all accounting estimates annually. Senior‑executive remuneration rose to SEK 84.5 billion, and the Board proposed a dividend of SEK 12.00 per share, representing 93 % of net income. Auditors affirmed that the consolidated statements present a fair view under IFRS, noting significant goodwill and intangible‑asset balances but no material uncertainties regarding the group’s ability to continue as a going concern. The report covers MTG’s global operations, primarily in TV/radio advertising, pay‑TV subscriptions, cable fees, merchandise, and programme‑rights licensing, for the 2016 calendar year.