Home Tournaments Modern Times Group Reports 3.9% Sales Growth YoY in Q1, Esports Returns to Growth

Modern Times Group Reports 3.9% Sales Growth YoY in Q1, Esports Returns to Growth

by H.B. Duran

mtg q1

Credit: Modern Times Group

  • Modern Times Group (MTG) recorded sales of 967M kr SEK ($100M USD) for Q1 2019, up 3.9% from 931M kr in the same quarter last year.
  • Sales in MTG’s “owned and operated” esports properties rose 16.9% in Q1 to 244M kr ($25.2M).
  • Esports Services sales increased 12.3% to 91M kr ($9.4M), compared to 81M kr ($8.4M) in Q1 2018.

Swedish digital entertainment company Modern Times Group Database-Link-e1521645463907

(MTG), which owns a majority share in ESL Database-Link-e1521645463907 parent company Turtle Entertainment and the entirety of DreamHack Database-Link-e1521645463907, recorded Q1 2019 sales of 967M kr ($100M USD), an increase of 3.9% over Q1 2018.

Esports revenue declined in the second half of 2018, but grew 15.7% YoY in Q1 2019 to 336M kr ($34.8M). ESL held two fewer events of its Masters category in Q1 2019 compared to the same time last year, but the two events—CS:GO Database-Link-e1521645463907 Major Championship and IEM Katowice—generated higher revenue. In addition, MTG delivered four more events of its Challenger category, including ESL Katowice Royale – Featuring Fortnite Database-Link-e1521645463907.

Dreamhack’s new e-FIFA leagues in Sweden and Denmark delivered “strong incremental revenues,” MTG said in its financial report, although specific figures were not provided.

Related Article: Modern Times Group Adds Play Ventures to Portfolio of 11 Gaming Startup Investments

Organic esports sales growth of 9.6% was offset by a 1.2% drop in MTG’s Gaming division, which includes Kongregate and InnoGames as well as a 52% decline in sales for MTG’s entertainment subsidiary Zoomin.

Mobile game sales grew 15.1% to 312M kr ($32.3M) and accounted for nearly 52% of the total Gaming vertical. Revenue performance was aided by Kongregate, which concentrated on a “smaller number” of successful games and started becoming profitable. InnoGames launched a new mobile title called God Kings that is showing ”strong” initial results, according to the financial report, although any further details were left out.

Modern Times Group has undergone a number of significant changes in the first quarter. In April, MTG sold its 95% shareholding in Nova Broadcasting Group and in March, MTG split from its regional TV business Nordic Entertainment Group. Those strategic moves caused MTG’s earnings per share (EPS) to spike for the first quarter of 2019 at 200.25 kr ($20.80).

 

2019_Q1_Financials_Graphic_EPS

 

“With Nova now sold, we can focus fully on expanding our portfolio of successful games companies,” said MTG president and CEO Jørgen Madsen Lindemann in a statement.

CS:GO Major ChampionshipDreamhackESLeuropeFinancial ResultsFortniteGlobaliem katowiceInnoGamesKongregateModern Times GroupMTGQ1 2019quarterly reportsSwedenTurtle Entertainment



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