March 25, 2020 / 1:30 PM / 9 days ago

BRIEF-MTG Updates Strategic Review Due To Corona Virus Pandemic

March 25 (Reuters) - Modern Times Group MTG AB:

* IMPACT OF CORONA VIRUS AND UPDATE ON STRATEGIC REVIEW

* REMAINS WELL FUNDED, WITH A NET CASH POSITION OF SEK 1.8 BILLION AS OF Q4 2019

* EXPECTED OPERATIONAL EFFECTS ON MTG’S ESPORT VERTICAL FROM CORONA VIRUS PANDEMIC, REPRESENTING 40 PERCENT OF 2019 GROUP REVENUE

* AT THIS POINT MTG IS NOT PROVIDING MARKET GUIDANCE FOR FULL YEAR 2020

* REVENUES IN ESPORTS VERTICAL IS EXPECTED TO DECLINE BY 35-45 PERCENT IN 1H 2020, IN COMPARISON TO SAME PERIOD 2019.

* Q1 2020 ESPORT REVENUE WILL DECLINE BY APPROXIMATELY 25 PERCENT COMPARED TO SAME PERIOD 2019

* THERE ARE LIMITED POSSIBILITIES TO REDUCE COST BASE IN QUARTER

* FROM Q2 2020, ESL AND DREAMHACK ARE REDUCING BOTH COST OF GOODS SOLD AND FIXED COSTS

* SAVINGS WILL BE AT LEAST SEK 150 MILLION FOR 1H 2020

* EXPECTS AN IMPROVED OPERATIONAL PERFORMANCE IN 2H 2020, SUPPORTED BY RESCHEDULED MASTER PROPERTIES AND FESTIVALS FOR BOTH ESL AND DREAMHACK

* BOARD CONTINUES TO BELIEVE THAT A SEPARATION OF GAMING AND ESPORTS BUSINESSES, IS BEST WAY TO MAXIMIZE SHAREHOLDER VALUE

* SEPARATION MAY BE IMPLEMENTED EITHER THROUGH A SALE OF GAMING BUSINESS OR THROUGH A LISTING ON NASDAQ FIRST NORTH GROWTH MARKET

* WILL PROPOSE TO UPCOMING AGM THAT IT APPROVE A MANDATE TO BE ABLE TO DECIDE FROM TIME TO TIME UP UNTIL 2021 AGM ON BUYING BACK UP TO 10 %

* HAS NO INTENTION OF IMPLEMENTING SUCH A BUY-BACK UNTIL PANDEMIC HAS BEEN BROUGHT UNDER CONTROL

* DECIDED TO POSTPONE ITS CMD TO 9TH OF OCTOBER 2020

* IS NOT PROVIDING MARKET GUIDANCE FOR FULL YEAR 2020 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below