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Modern Times Group boosted by Nordic TV and InnoGames

Innogames mtgModern Times Group’s Nordic entertainment group and its newly majority-owned games subsidiary InnoGames contributed to strong sales and profitability in the second quarter, with the media outfit posting 5% sales growth of 14% and a 9% increase in profits.

MTG posted revenues of SEK4.246 billion (€236 million) from continuing operations for a quarter that excluded the discontinued Czech, Baltic and African businesses. The figure represented 5% organic sales growth, a figure that was boosted to 14% if InnoGames is included. MTG upped its stake in the games outfit to 51% in May, giving it two months of revenue in the quarter.

Operating income was up 9% to SEK391 million before exceptional items, with the Nordic entertainment group’s profits growing by 15%.

MTG said that it expected to deliver the first quarterly profit for its MTGx games division in the fourth quarter of this year.

The Nordic media group’s president and CEO, Jørgen Madsen Lindemann, said that it remained “very well positioned” to benefit from the migration of video consumption to on-demand and online platforms, including streaming services, eSports and gaming.

“We are one of the few entertainment companies to have integrated n and offline, linear and on demand, fixed and mobile products,” said Lindemann.

Lindemann said that the company had “continued to execute on our strategic transformation” by selling its Czech unit, upping its investment in InnoGames and announcing the acquisition of gaming outfit Kongregate.

He said that MTG had continue to invest in original drama and sports rights as well as new virtual reality app Viareal.