Modern Times Group MTG AB

Latest Results (14.08.2024):

Revenue Performance

In Q2 2024, Modern Times Group MTG AB reported a slight decline in net sales by 1% year over year, amounting to SEK 1,437 million. Despite this, the company maintained its full-year outlook, expecting a 1-5% growth in reported sales before currency effects. Snowprint's revenues grew due to the success of Warhammer 40,000: Tacticus, while other studios saw a decline in sales.

EBITDA and Margins

Modern Times Group MTG AB achieved a 7% year over year increase in adjusted EBITDA, reaching SEK 426 million in Q2 2024. This resulted in a strong adjusted EBITDA margin of 30%, up from 27% in the previous year. The company attributes this improvement to disciplined marketing and operational efficiency.

Cash Flow and Share Repurchase

For the first half of 2024, Modern Times Group MTG AB reported a cash flow from operations of SEK 667 million. The company also launched a SEK 400 million share repurchase program after the AGM in May, which will run until May 2025. This initiative is part of their strategy to return value to shareholders.

Outlook for 2024

Modern Times Group MTG AB reiterated its outlook for 2024, expecting reported sales growth between 1% and 5% on a currency-adjusted basis. The company also anticipates an adjusted EBITDA margin for the full year to be between 26% and 29%, driven by strong operating leverage and strategic user acquisition investments.

Balance Sheet and Shareholder Value

Modern Times Group MTG AB maintains a strong balance sheet, supported by high and steady cash flow generation. The company is committed to returning money to shareholders through its ongoing SEK 400 million share buy-back program. This financial strength allows MTG to continue investing in its portfolio and pursue M&A opportunities, enhancing long-term shareholder value.