MTG’s Q1 Lifted by Viaplay Takeup, eSports, MCN Businesses

STOCKHOLM: Modern Times Group (MTG) reported record first-quarter sales, affirming that the company’s transformation is “on track.”

The company posted a 3-percent lift in revenue to SEK 3.83 billion ($1.04 billion), reflecting continued high Viaplay subscriber intake, the addition of the new eSports and multichannel network (MCN) businesses, and continued high underlying growth in international entertainment operations. Net income from continuing operations was SEK 119 million ($14.7 million).

“Operating profits before [items affecting comparability] IAC were up as our cost transformation initiatives and the operating leverage in the international entertainment businesses mitigated the ongoing adverse FX effects, investments in the new MTGx businesses, and a material step-up in sports costs,” said Jørgen Madsen Lindemann, the company’s president and CEO. “Our strategic transformation is progressing well and according to plan, with further developments right across the group.”

MTG said that audience shares are up in almost all of its markets; there are more subscribers across the Nordic region than ever before; and online views are at record levels. “We have not only added a number of high impact international sports rights but Viaplay is also commissioning a number of new original series from our own award-winning studios,” Lindemann continued.

In regard to eSports, 2015 was hailed as a “breakthrough year.” Lindemann said, “The industry continued its rapid growth in revenues, tournaments, players and viewers, and eSports has arrived as a challenger to traditional sports, both in terms of size of fan base and global potential. Turtle is now available on multiple streaming platforms, and the Turtle and DreamHack events so far in 2016 are breaking all records. eSports is not the only digital product with global potential in the Group, now that Zoomin.TV and Splay are creating new web stars and distributing content all around the world.”

Overall, “Our objective remains to accelerate our sales growth and increase our operating profits in 2016, despite the anticipated SEK 250 million of incremental adverse FX effects and the additional costs for the new or extended sports rights that we have acquired,” he continued. “This is made possible by our products being more relevant and popular than ever; the positive effects of the transformation process; and the strong performance in our international entertainment business.”