2023 has proven to be a successful year for Modern Times Group (MTG), from bringing greater shareholder value in the spring to a record-breaking third quarter. With only two months of the year left to go, one might ask what else MTG could possibly cram into 2023.
We already have our answer: Modern Times Group has taken 100% ownership of PlaySimple.
A full acquisition
From its Sweden base, MTG expanded its reach by acquiring Indian word games developer PlaySimple in 2021, following the latter’s 144% revenue rise. MTG set out a target to own the entirety of PlaySimple in the years to follow and has now achieved this, though has not yet transferred Class B shares to PlaySimple founders as was laid out in the original agreement. Instead, these are currently being held as Class C shares by MTG.
MTG repurchased 176,970 of its own Class B shares between 27 February and 3 March 2023 under a company initiative to "bring further shareholder value". The programme was announced last October with the goal of recovering up to 4,618,818 of its sold shares.
Its Gaming Village continues to grow too, with companies under MTG’s umbrella including Ninja Kiwi, Innogames, Kongregate and, of course, PlaySimple. Importantly, the studios each preserve their own identities under MTG, from a fully remote working model at Kongregate to a "Flexible Four O’clock" at Kiwi Ninja.
The latest company to move into the Gaming Village is Swedish mobile developer and Pocket Gamer Awards winner Snowpoint Studios, now 70% owned by MTG to add games like the fast-scaling mid-core hit Warhammer 40,000: Tacticus to its portfolio.
Overall, it’s safe to say things are going well at MTG. Despite its Q3s typically being "seasonally weaker", this one has seen continued momentum from earlier in the year and a record-breaking 30% margin on its adjusted EBITDA.
"The year-over-year growth was driven by PlaySimple and Ninja Kiwi, while nearly all our studios grew their sales on a sequential basis," said MTG president and CEO Maria Redin.