Q1 2018 FINANCIAL RESULTS Plan to split MTG into two listed - - PowerPoint PPT Presentation

Q1 2018 FINANCIAL RESULTS

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New MTG

• A pure play in digital entertainment
• Comprising esports (ESL & DreamHack), online

gaming (InnoGames & Kongregate), Zoomin.TV, and

• ther investments
• CEO: Jørgen Madsen Lindemann
• CFO: Maria Redin
• Company name: MTG
• Shares will remain listed on Nasdaq Stockholm
• HQ at Skeppsbron, Sweden
• Nordics leading entertainment provider
• Comprising Nordic Entertainment, MTG Studios and

Splay Networks

• CEO: Anders Jensen
• CFO: TBA
• Company name: Nordic Entertainment Group
• Shares will be distributed to MTG shareholders and

listed on Nasdaq Stockholm during H2 2018

• HQ at Ringvägen, Sweden

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Plan to split MTG into two listed companies

Nordic Entertainment Group

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Q1 2018 IN SUMMARY

• 9% organic sales growth & 73% profit growth
• Q1 marks the 7th consecutive quarter with at

least 5% organic growth

• Digital sales up 88% and accounted for 35% of

Group sales

• MTG preparing to split into two listed

companies during H2 2018, through distribution

• f shares in Nordic Entertainment Group

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SALES & EBIT BY SEGMENT

237 137 100 200 300 Q1’18 Central

• ps. &

Elim. MTGx Studios IE NE Q1’17 4 674 3 704 3 500 4 000 4 500 5 000 Central

• ps. &

Elim. Q1’18 MTGx Studios IE NE Q1’17

Sales (SEKm) EBIT before IAC (SEKm)

Sales and EBIT refer to continuing operations

Key highlights Sales (SEKm) EBIT (SEKm)

Organic sales up 6%

• Solid growth in both sub-segments

despite difficult comps and winter- Olympics on rival channels

• FTV & Radio boosted by Viafree,

Swedish Radio and the European Handball Championship

• PTV growth driven by strong 3rd partly

and Viaplay subscriber intake All-time high Q1 profits – up 4%

• Continue to deliver on profitable

growth ambition

• 6th consecutive quarter with profit

growth

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NORDIC ENTERTAINMENT

500 1 000 1 500 2 000 2 500 3 000 3 500 Q1’18 Q1’17 100 200 300 400 Q1’17 Q1’18

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MTG STUDIOS

100 200 300 400 Q1’18 Q1’17

• 20
• 10

Q1’18 Q1’17

Key highlights Sales (SEKm) EBIT (SEKm)

Organic sales down 2%

• Sales down due to lower events sales

and timing differences in the production schedule for scripted drama

• However the underlying demand for

scripted drama remains strong and the pipeline looks promising

• Opportunities to accelerate growth in

digital first production by a closer cooperation with Splay Networks Slightly lower operating loss

• Q1 is a seasonally weak sales quarter

and typically loss making

• Losses down slightly despite start-up

costs for Atrium-TV

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INTERNATIONAL ENTERTAINMENT

100 200 300 400 Q1’18 Q1’17 10 20 30 40 50 Q1’18 Q1’17

Key highlights Sales (SEKm) EBIT (SEKm)

Organic sales up 14% and EBIT up 90%

• Double-digit sales growth in Nova

Group (Bulgaria) & Trace

• Improved profitability in both

businesses Agreements to sell remaining businesses

• Waiting for regulatory approvals for

both Trace and Nova

• Both expected to close in Q2 2018

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MTGx

200 400 600 800 1 000 Q1’18 Q1’17

• 100
• 80
• 60
• 40
• 20

Q1’18 Q1’17

Key highlights Sales (SEKm) EBIT (SEKm)

Organic sales up 27%

• Fuelled by over 70% growth in ESL’s
• wn and operated events
• Reported sales up 226% following

consolidation of InnoGames and Kongregate Turned EBITDA loss into a profit

• EBITDA of SEK 45m (-71)
• Supported by InnoGames
• EBIT loss of SEK 8m (-84)
• New organisational structure

announced in ESL in April

Sales (SEKm) EBIT before IAC (SEKm)

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SALES & EBIT BY TYPE

4 674 3 704 3 000 3 500 4 000 4 500 5 000

Q1’18 Divestments Acquisitions FX Organic Q1’17

237 137 100 200 300

Q1’18 Divestments Acquisitions Organic Q1’17

For continuing operations. Organic EBIT includes FX translation & transaction effects. Acquisitions includes M&A costs.

Net debt to 12m trailing EBITDA before IAC

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Net debt (SEKm)

LEVERAGE

500 1 000 1 500 2 000 2 500 3 000 3 500 Q4’17 Q3’17 Q2’17 Q1’17 Q4’16 Q3’16 Q1’18 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Q4’17 Q3’17 Q2’17 Q1’17 Q4’16 Q3’16 Q1’18

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SUMMARY

• 9% organic sales growth & 73% profit growth
• Q1 marks the 7th consecutive quarter with at

least 5% organic growth

• Digital sales up 88% and accounted for 35% of

Group sales

• MTG preparing to split into two listed

companies during H2 2018, through distribution

• f shares in Nordic Entertainment Group

QUESTIONS PLEASE