MTG Sees Profit, Revenue Gains


In Q3, revenues at MTG rose by 17 percent to SEK 4.3 billion ($525 million), delivering a total net profit of SEK 177 million ($21.7 million).

The Nordic entertainment segment saw higher revenues of SEK 2.8 billion ($346 million), with a boost in pay-TV revenues making up for a small decrease in free-TV income. Operating income for the division rose to SEK 301 million ($37 million). International entertainment revenues were also up, increasing to SEK 246 million ($30 million), and an improved operating income of SEK 29 million ($3.6 million).

MTG Studios reported a 15-percent revenue gain to SEK 529 million ($64.9 million), boosted by strong demand for scripted drama formats and branded content. Operating income rose to SEK 43 million ($5.3 million).

MTGx saw its revenues more than double to SEK 798 million ($98 million) and the segment narrowed its operating loss to SEK 38 million ($466,000). The company said the loss was largely due to the scaling of the eSports operation.

“We have now delivered a fifth consecutive quarter of more than 5 percent organic sales growth,” said Jørgen Madsen Lindemann, president and CEO. “Our 7 percent organic sales growth in Q3 was driven by higher sales for all four of our business segments, while our 17 percent total reported growth included the full contribution from InnoGames. The organic sales development reflected 39 percent growth for the MTGx businesses, including 49 percent organic eSports sales growth, and double-digit percentage point organic growth for both the international entertainment and studios operations. Nordic entertainment generated 3 percent organic growth against tough comparisons, as we had exclusive coverage of the Rio Olympics and the Ice Hockey World Cup last year in Sweden, but we continued to benefit from higher advertising and subscription prices with further usage and revenue expansion for both Viaplay and Viafree.”

Lindemann continued, “We completed the acquisition of Kongregate, our second gaming company, during the quarter, and have completed the sale of our Baltic operations after the end of the quarter. This active portfolio management and focused capital allocation is key to our transformation, which is all about capitalizing on the shift in consumer video consumption to on-demand and mobile entertainment products like Viaplay, Viafree, Splay, ESL and InnoGames. We have added more sports content to our streaming and traditional products in the Nordics, and premiered a number of original scripted productions that are not only attracting large local audiences but also ever-increasing interest from the international markets. We see continuing high demand for both our TV and radio products, which provide great value for money, and we are constantly looking at ways to enhance our on and offline offerings. Our integrated entertainment offering is now better positioned than ever in markets that are at the very forefront of the industry’s transformation.”