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MTG B Share Repurchases Will Support Future Earnings And Share Price Upside

MTG B: Earnings Guidance And Reorganization Will Drive Improved Margins Ahead

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MTG B
AnalystConsensusTarget
Not Invested
Published 09 Aug 2025

Update shared on 15 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
20.3%
7D
1.5%

Analysts have modestly raised their price target on Modern Times Group MTG, citing slightly higher long term discount rate assumptions and stable expectations for revenue growth, margins, and future valuation multiples as justification for the updated SEK 156 fair value estimate.

What's in the News

  • Launched a share repurchase program of up to SEK 400 million, with repurchases starting October 10, 2025 and running until May 15, 2026, with bought-back shares to be cancelled (company announcement)
  • Received AGM authorization to repurchase up to 12,203,000 Class A and/or Class B shares, equal to 10% of issued share capital, to enhance shareholder returns and support long term incentive programs (AGM mandate)
  • Raised full year 2025 guidance to 7% to 9% organic growth and SEK 11.4 to 11.7 billion in revenues, up from a previous organic growth target of 3% to 7% (company guidance)
  • Announced a new divisional structure within the Gaming Village, creating Midcore and Casual Districts, with Midcore grouping studios such as Plarium, Futureplay, InnoGames, Snowprint, Hutch and Ninja Kiwi (company update)

Valuation Changes

  • Fair Value Estimate remains unchanged at approximately SEK 156 per share, indicating no fundamental shift in the analysts intrinsic valuation.
  • The Discount Rate has risen slightly from about 7.82 percent to 7.90 percent, reflecting a modestly higher required return for investors.
  • Revenue Growth is effectively unchanged at around 10.0 percent, suggesting stable long term top line expectations.
  • The Net Profit Margin is effectively unchanged at roughly 6.7 percent, implying no material revision to long term profitability assumptions.
  • The Future P/E has risen slightly from roughly 24.26 times to 24.32 times, indicating a marginally higher assumed valuation multiple on expected earnings.

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Disclaimer

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