STOCKHOLM, February 25, 2021 — Modern Times Group MTG AB (publ) (“MTG”) today publishes its Q4 2020 and Full Year financial results report.
“MTG continues to show solid operational performance and high profitability as we report our final figures for the full year and Q4 2020, a challenging but transformative year for the company,” Group President and CEO Maria Redin writes in the report CEO Letter.
Maria Redin continues: “While we were rocked when the pandemic hit society - and us as part of it - in February 2020, we quickly regained our footing thanks to the impressive and hard work from all our people within the group. We’ve remained focused and confident, while we’ve dared to turn every stone to ensure business continuity. As a result, we stand stronger as a group now than what we did one year ago.”
MTG’s Q4 and Full Year 2020 Financial Results report highlights follows below. For the full report please see the attached file or www.mtg.com.
Concluding a record year
- The gaming vertical delivered a solid quarter and concluded a record year both in terms of net sales and adjusted EBITDA. The positive performance in the quarter was driven by high user engagement leading to growing Average Revenue Per Daily Active User (ARPDAU) as a result of maintained successful in-games campaigns for the InnoGames portfolio
- The esport vertical delivered six Master properties in the quarter, leading to a sequential recovery in net sales. This, combined with good cost control and improved revenue mix, resulted in the esport vertical delivering positive Adjusted EBITDA result for the first time
- In the quarter, MTG increased its ownership in InnoGames to 68 percent, consolidated its gaming investments in a new gaming holding company (“GamingCo”) and acquired Hutch Games, a market leader in mid-core mobile racing games. The transactions resulted in a 77.35% ownership in GamingCo.
Q4 2020 financial highlights
- Net sales declined by 9 percent to SEK 1,064 (1,163) million with a negative impact of foreign exchange rates of 6 percent. Organic Net sales declined by 3 percent
- Adjusted EBITDA of SEK 193 (84) million, with adjustments for IAC of SEK positive 7 (neg: 98) million, impairment of own capitalized costs of SEK 10 (93) million, long-term management incentive programs (LTI) SEK positive 10 (neg: 11) million and total M&A transaction costs of SEK 40 (5) million
- EBITDA of SEK 160 (-123) million
- Operating income (EBIT) of SEK 91 (-206) million
- Net income from continuing operations of SEK 66 (-207) million
- Basic earnings per share of SEK 0.99 (-3.08)
- Net cash flow from operations of SEK 95 (-70) million
Financial overview
| (SEKm) |
Q4
2020 |
Q4
2019 |
FY
2020 |
FY
2019 |
| Continuing operations |
|
|
|
|
| Net sales |
1,064 |
1,163 |
3,997 |
4,242 |
| of which esport |
429 |
516 |
1,315 |
1,712 |
| of which gaming |
635 |
650 |
2,682 |
2,531 |
| of which central operations and eliminations |
0 |
-3 |
0 |
0 |
|
|
|
|
|
| Costs before depreciation and amortization |
-904 |
-1,286 |
-3,678 |
-4,352 |
| Adjusted EBITDA |
193 |
84 |
535 |
239 |
| Adjusted EBITDA margin |
18% |
7% |
13% |
6% |
|
|
|
|
|
| Adjustments |
-33 |
-207 |
-217 |
-349 |
|
|
|
|
|
| EBITDA |
160 |
-123 |
319 |
-109 |
| Amortization |
-48 |
-60 |
-195 |
-202 |
| Depreciation |
-20 |
-23 |
-88 |
-96 |
| of which PPA |
-24 |
-30 |
-112 |
-120 |
|
|
|
|
|
| EBIT1) |
91 |
-206 |
35 |
-407 |
| EBIT margin |
9% |
-18% |
1% |
-10% |
|
|
|
|
|
| Net income |
66 |
-207 |
-96 |
-458 |
| Basic earnings per share (SEK) |
0.99 |
-3.08 |
-3.39 |
-8.19 |
|
|
|
|
|
| Discontinued operations2) |
|
|
|
|
| Net income |
- |
-160 |
- |
14,852 |
|
|
|
|
|
| Total operations |
|
|
|
|
| Net income |
66 |
-367 |
-96 |
14,394 |
| Basic earnings per share (SEK) |
0.99 |
-5.33 |
-3.39 |
212.68 |
|
|
|
|
|
| Net cash flow from operations |
95 |
-70 |
270 |
-188 |
| CAPEX |
42 |
66 |
208 |
239 |
|
|
|
|
|
| Net sales growth y-o-y |
|
|
|
|
| Organic growth |
-3% |
12% |
-4% |
7% |
| Acquisitions/divestments |
- |
0% |
- |
-1% |
| Changes in FX rates |
-6% |
3% |
-2% |
4% |
| Change in reported net sales |
-9% |
15% |
-6% |
10% |
| 1) See page 24 for details of adjustments to EBITDA. Alternative performance measures used in this report are explained on page 25 |
| 2) Consists of the adjusted result for NENT, Nova and Zoomin in 2019 |
|
|
|
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Shareholder information
Financial calendar
| 2020 Annual Report |
April 13 2021 |
| Q1 2021 interim report |
April 29 2021 |
| 2021 Annual General Meeting |
May 18 2021 |
| Q2 2021 interim report |
July 20 2021 |
| Q3 2021 interim report |
October 28 2021 |
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Conference call
MTG AB will hold a conference call at 3.00pm CET which will be hosted by MTG Group President and CEO Maria Redin and CFO Lars Torstensson.
Dial in details:
Sweden +46 (0) 856 618 467
UK: +44 (0) 844 481 9752
US: +1 646 741 3167
Std. International: +44 (0) 2071 928 338
The access pin code for the call is 183 35 48
To listen to a streamed webcast - listen only - of the conference call visit:
https://edge.media-server.com/mmc/p/57zdfvv3
The information was submitted for publication, through the agency of the contact persons set out below, at 14.00 CET on February 25 2021.
For more information:
Oliver Carrà, Public Relations Director
Direct: +46 70 464 44 44, oliver.carra (at) mtg.com
Follow us: mtg.com / Twitter / LinkedIn
***
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’).
