“Government policies to contain the spread of the pandemic have had a negative impact on MTG’s esports vertical, which is built around large live events with media rights, brand partnerships and many attending fans who purchase tickets and merchandise. However, our work to further commercialize esports has continued in the quarter,” MTG’s President and CEO Jørgen Madsen Lindemann states in the report

“The gaming vertical has proven to be more resilient to the impact from the Coronavirus pandemic. Our products have rather than being negatively impacted, seen an accelerated inflow of new users towards the end of the quarter. In particular InnoGames experienced this trend, ending March with a close to record high DAU,” he continues.

MTG’s Q1 financial report highlights follow below. For the full report please see the attached file or www.mtg.com.

Continued push on the strategic agenda

• Despite being impacted by the Coronavirus pandemic the esport vertical quickly adapted and ensured business continuity by rescheduling events and moving the Pro Tour online and delivering record viewership in the quarter
• The esport vertical continued to deliver further on the strategic agenda by signing the “Louvre” agreement with the best CS:GO teams in the world, and announced strategic agreements with Blizzard Entertainment, and PUBG Mobile
• The gaming vertical showed more resilience towards the Coronavirus pandemic impact in the quarter, with InnoGames in general and Forge of Empires in particular delivering quarter over quarter increasing Average Daily Active Users (DAU), ending the period close to an all-time high DAU

Q1 2020 financial highlights

• Net sales decline by 2 percent to SEK 924 (940) million
• Adjusted EBITDA of SEK -21 (37) million, including adjustments for Items Affecting Comparability (IAC) of SEK 3 (54) million, Long-term incentive (LTI) programs of SEK 32 (25) million and M&A transaction costs of SEK 13 (-) million
• EBITDA of SEK -69 (-42) million
• Operating income (EBIT) of SEK -142 (-110) million
• Net income from continuing operations of SEK -132 (-133) million
• Basic earnings per share of SEK -2.38 (-2.45)
• Net cash flow from operations of SEK -39 (-102) million

Financial overview

1. See page 22 for details of adjustments to EBITDA. Alternative performance measures used in this report are explained on page 24
2. Consists of the adjusted result for NENT, Nova and Zoomin in 2019

Shareholders information

Financial calendar

Conference call
MTG AB will hold a conference call at 3.00pm CEST which will be hosted by President & CEO Jørgen Madsen Lindemann and CFO Maria Redin. 

Dial in details:

Sweden +46 850 692 180
UK: +44 844 571 8892
US: +1 631 510 7495

The access pin code for the call is 675 72 09

To listen to a streamed webcast - listen only - of the conference call visit:
https://edge.media-server.com/mmc/p/xmoju5ah

This information is information that MTG (Modern Times Group MTG AB (publ.)) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 02.00pm CEST on April 28th 2020.

For more information:
Lars Torstensson, EVP Communications & Investor Relations
Direct: +46 (0)702-734 879, lars.torstensson (at) mtg.com

Oliver Carrà, Public Relations Director
Direct: +46 70 464 44 44, oliver.carra (at) mtg.com

Reach us: communications@mtg.com
Download high-resolution photos: Flickr
Follow us: mtg.com / Twitter / LinkedIn

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About MTG
MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is a strategic and operational investment holding company in esports and gaming entertainment. Born in Sweden, the shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).