Modern Times Group’s mobile games business helped fuel growth in net sales by 11 per cent year-on-year to SEK 1,117 million ($118m) in Q2 2019.

Despite this the company still posted a net income loss for continuing operations for the quarter of SEK 71 million ($7.5m) for the quarter. Losses however were down compared to the losses of SEK 136 million ($14m) the year prior.

Total net income came in at SEK 1,419 million ($150m) for the quarter, though this was mainly due to the divestment of the Nova Broadcasting Group. MTG had a 95 per cent shareholding in the group, which was valued at SEK 1,830 million ($194m).

Games growth

German developer InnoGames was highlighted for its strong performance in Q2. Its flagship game Forge of Empires recently passed €500 million ($559m) in lifetime revenue, half of which is said to have come in the last two years thanks to the game’s mobile release.

InnoGames’ new title God Kings is said to show early promise, with MTG planning to increase marketing efforts for the game during the second half of 2019.

PC and mobile outfit Kongregate meanwhile has seen improvements in its revenue and EBITDA.

Overall net sales for MTG’s games business reached SEK 648 million ($68.5m), up 19 per cent from 2018. Mobile represented more than half of all games revenue, rising 24 per cent to SEK 330 million ($35m).

MTG currently has a total cash balance of SEK 2.1 billion ($222m) and plans to use these funds to conduct further acquisitions.