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Modern Times Group AB (SE:MTG.B)
:MTG.B

Modern Times Group AB (MTG.B) AI Stock Analysis

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Modern Times Group AB

(LSE:MTG.B)

Rating:58Neutral
Price Target:
kr116.00
▼(-3.57%Downside)
The overall stock score of 58 reflects strong operational efficiency and revenue growth, partially offset by significant profitability challenges. Technical indicators suggest a neutral market sentiment, while valuation metrics are unattractive due to the high negative P/E ratio and lack of dividend yield.

Modern Times Group AB (MTG.B) vs. iShares MSCI Sweden ETF (EWD)

Modern Times Group AB Business Overview & Revenue Model

Company DescriptionModern Times Group AB (MTG.B) is a Swedish digital entertainment company primarily engaged in the gaming and esports sectors. The company operates a diverse portfolio of gaming studios and esports brands, providing a wide range of interactive entertainment products and services to a global audience. MTG focuses on developing and publishing online games, as well as organizing and broadcasting esports events, thereby catering to the rapidly growing digital entertainment market.
How the Company Makes MoneyModern Times Group AB generates revenue through several key streams. Primarily, the company earns money from its gaming segment, which includes the sale of in-game items and virtual currencies, subscriptions, and advertisements within its online games. Additionally, MTG's esports division contributes significantly to its revenue through sponsorships, media rights, ticket sales, and merchandise associated with esports events and tournaments. The company also benefits from strategic partnerships and collaborations with other gaming and media companies, enhancing its distribution capabilities and expanding its market reach. MTG's focus on digital platforms allows it to capitalize on the increasing demand for online gaming and esports entertainment.

Modern Times Group AB Financial Statement Overview

Summary
Modern Times Group AB demonstrates strong revenue growth and efficient operations, reflected in healthy gross profit and EBIT margins. However, the company faces profitability challenges, as indicated by negative net income and ROE. The balance sheet is stable with moderate leverage, and cash flow from operations is strong, though the free cash flow growth has slowed. Overall, the company is positioned well in terms of growth and operational efficiency, but improving profitability remains a key focus.
Income Statement
75
Positive
The company has shown a consistent revenue growth trajectory over the years, with a notable increase from the previous periods. The gross profit margin is strong at 72.7% TTM, reflecting efficient cost management. However, the net profit margin is negative at -1.6% TTM, indicating challenges in achieving profitability. The EBIT and EBITDA margins are relatively healthy at 13.3% and 17.3% TTM, respectively, suggesting operational efficiency but also highlighting the impact of non-operating expenses.
Balance Sheet
65
Positive
The balance sheet shows a solid equity base with an equity ratio of 52.4% TTM, indicating strong financial stability. However, the debt-to-equity ratio is 0.45 TTM, which is moderate and suggests leverage is being utilized but not excessively. The return on equity (ROE) is negative, which is concerning as it indicates the company is not generating profit relative to shareholder equity.
Cash Flow
70
Positive
The cash flow situation is favorable with a strong operating cash flow to net income ratio of 10.74 TTM, suggesting good cash generation from operations despite negative net income. The free cash flow to net income ratio is also robust. However, the free cash flow growth rate has declined compared to past periods, which could suggest increased capital expenditures or other cash uses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.13B6.01B5.83B5.54B5.31B4.00B
Gross Profit5.18B4.46B4.25B4.01B2.58B2.22B
EBITDA1.23B760.00M1.43B1.42B594.00M348.00M
Net Income-114.00M-210.00M164.00M252.00M-455.00M-96.00M
Balance Sheet
Total Assets22.76B18.07B17.50B18.77B17.44B10.80B
Cash, Cash Equivalents and Short-Term Investments2.18B3.54B2.96B4.73B943.00M1.15B
Total Debt5.37B753.00M708.00M771.00M2.77B3.08B
Total Liabilities10.83B4.33B3.79B4.83B7.51B5.58B
Stockholders Equity11.93B13.74B13.71B13.93B8.00B3.84B
Cash Flow
Free Cash Flow1.11B1.24B1.05B634.00M54.00M62.00M
Operating Cash Flow1.22B1.34B1.26B868.00M306.00M270.00M
Investing Cash Flow-6.55B-551.00M-2.35B-636.00M-3.37B-2.47B
Financing Cash Flow4.31B-388.00M-536.00M-4.97B2.81B1.56B

Modern Times Group AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price120.30
Price Trends
50DMA
112.13
Positive
100DMA
114.41
Positive
200DMA
102.00
Positive
Market Momentum
MACD
2.42
Negative
RSI
63.26
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MTG.B, the sentiment is Positive. The current price of 120.3 is above the 20-day moving average (MA) of 114.57, above the 50-day MA of 112.13, and above the 200-day MA of 102.00, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:MTG.B.

Modern Times Group AB Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
€340.46M2,141.67>-0.01%7.78%-11.35%-92.00%
61
Neutral
$40.70B-0.98-11.97%3.93%2.03%-69.70%
58
Neutral
kr14.03B-0.89%19.35%-213.30%
52
Neutral
€60.78M-60.20%-13.48%34.61%
43
Neutral
$316.95M-28.05%-70.32%-184.31%
41
Neutral
kr180.35M-253.32%13.74%21.17%
39
Underperform
€36.63M-25.37%-23.00%74.94%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:MTG.B
Modern Times Group AB
120.30
33.50
38.59%
SE:STAR.B
Starbreeze AB
0.19
-0.13
-40.00%
SE:FRAG
Fragbite Group AB
9.20
-15.30
-62.45%
SE:GCOR
Gaming Corps AB
1.25
0.35
38.33%
SE:MAGI
MAG Interactive AB
13.35
5.32
66.29%
SE:QIIWI
Qiiwi Games AB
3.88
1.68
76.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025