Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q2 2019 Earnings Presentation
10 slides from Modern Times Group Mtg Ab Class A's earnings presentation, Jul 21, 2019
Slide 1: Q2 2019 Financial Results
Slide 2: Q2 in summary - highlights
Lifetime revenue > EUR 500 million Q2 in summary - highlights Solid operational development with Q2 2019 reported sales growth 11 % and adjusted EBITDA margin 6 % . Sales in our two verticals was up 14 % in the quarter. Adjusted EBITDA improved by SEK 97 million Esports continued to deliver on its s
Slide 3: Continued growth in esports
Net sales, reported Adjusted EBITDA (SEKm) (SEKm, %) 445 13% -12% o——_e -52 55 Q218 Q219 Q218 Q2719 Il Esports services HB Adj. EBITDA HN Owned and operated —® Adj. EBITDA margin Continued growth in esports O&O properties activated Masters 8 5 Challengers 19 29 Open 5 5 ESL One Birmingham was our mo
Slide 4: Mobile driving Gaming revenue growth
Mobile driving Gaming revenue growth Net sales, reported ° Mobile > 50% of revenue prone e Surpassed EUR 500 million in lifetime revenue ° — Successful soft launch ° Encouraging initial KPIs Kongregate starting to turn around Q218 Q219 ° Acquisition of success game Bit Heroes [_|élisiiner |_|(stetet
Slide 5: Improving trends in Gaming
Improving trends in Gaming Adjusted EBITDA Adjusted EBITDA margin Daily active users (DAU) (SEKm) (%) (million) oR 28.7% as 2.8 a) 2.8 27 21.1% 4 21.0% *——-__*40 *_ — 486 19.1% Q218 318 418119 219 Q218 318-4819 219 115 ARPDAU Monthly active users (MAU) (SEK) (million) Q218 Q2°19 Q218 318 418119219 Q
Slide 6: MTG VC Fund
MTG VC Fund Investments in 1H 2019 totals SEK 103 million including capital commitments and span start-up and growth companies in the United States and Germany Among the investments are Redwood City-based Dorian, Austin based game developer Tonk Tonk Games, gamer rewards platform Playfull from Los A
Slide 7: Q2 sales and adj. EBITDA - improvements driven predominantly by gaming
Q2 sales and adj. EBITDA -— improvements driven predominantly by gaming Net sales by vertical Adjusted EBITDA (SEKm) (SEKm) 71 “\ Q218 Esports Gaming Other&Central Q2'19 -26 Q218 Q219 Mo
Slide 8: Q2 income statement
Q2 income statement (SEKm) Q2 2019 Q2 2018 Q2 2019 Comments Adjusted EBITDA val -26 Improved profitability in gaming Adjusted EBITDA margin 6.3% -2.6% Including -43 million in central operations cost A Z . IAC: SEK 4 million due to Zoomin restructuring Adjustments oh al LTI: SEK 23 million for total
Slide 9: Capex, cashflow and cash balance
Capex, cashflow and cash balance Capex -68 -46 of which Gaming -58 -34 VC Fund investments of SEK 22 million, one new and two follow-on. Fund now SEK 195 million invested in 16 companies Cash flow from operations -69 of which working capital -29 Net cash at end Q2 2,085 Cash proceeds from Nova sale
Slide 10: Summary and outlook
Summary and outlook Solid operational development in Q2 2019 with sales in our two verticals up 14 % Esports continued to deliver on its strategic ambition with O&O sales growth of 15 % Exceptionally strong revenue and margin trends in gaming VC fund invested SEK 22 million in three companies in the
Modern Times Group MTG — Q2 2019 Earnings Presentation on 6ix