MTG to grow InnoGames stake

Scandinavia’s Modern Times Group (MTG) will increase its investment in eSports firm InnoGames as part of its shift away from traditional broadcast operations – a strategy that has helped its operating income rise by 6% over the past 12 months.

Jørgen Madsen Lindemann

MTG has been focusing on digital media over the past two years, investing in companies such as Zoomin and eSports outfits including ESL.

More recently, it took a 21% stake in online gaming firm InnoGames, costing US$100m, and has confirmed it will increase this to 51% once it completes the sale of its stake in Czech broadcaster FTV Prima.

The company has also been expanding the operations of its on-demand service Viaplay across the Baltics and Viafree in Scandinavia, while also ramping up its original drama investment.

Its dramas include Veni Vidi Vici, a 10-parter written by Rafael Edholm and Santiago Gil, and MTG Studios’ first original Swedish Dicks, which debuted on Viaplay in September.

Meanwhile, the company has sold stakes in Russian outfit CTC Media, after regulatory changes, and off-loaded its free TV networks in Ghana and Nigeria, having shed jobs in 2015.

Jørgen Madsen Lindemann, president and CEO, said group-wide digital sales almost doubled in 2016 while OTT service Viaplay had “another record year with substantial subscriber growth and price increases reflecting further investments in high-quality programming and enhanced user experience.”

“We continue to lead the way by capitalising on changes in consumer behaviour to become a global leader in key digital video entertainment verticals,” he said.

MTG recorded sales of SEK5.02m (US$577,000) in the fourth quarter, up from SEK4.55 12 months earlier, while operating income was up 28% in Q4 on the same period the previous year and rose 6% for the full year.