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Covid-19 crashes MTG’s esports business but gaming revenues performing well

Covid-19 crashes MTG’s esports business but gaming revenues performing well

Swedish gaming outfit MTG has released a financial update concerning the impact of Covid-19 on its various businesses.

In particular, it notes that while its gaming division, which includes developers such as Innogames and Kongregate, continues to perform well, its esports division has been hit hard.

This includes brands such as ESL and DreamHack, which run large scale live events.

MTG reckons the half year revenue from esports activity will be down 35-45 percent year-on-year, although it hopes it can regain some of that lost revenue in second half of 2020. 

Further complications

A further complication is that even before Covid-19, MTG was considering to split its gaming and esports businesses, possibly sell-off the stronger gaming business or floating it as a separate company on the Nasdaq First North Growth Market.

MTG will postpone this decision on this until later in 2020.

"We are executing on a three phased plan with focus on business continuity, operational efficiency and seizing of new business opportunities in these difficult times, to come out stronger and build on our market leadership in esports," commented CEO Jørgen Madsen Lindemann.


Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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