Modern Times Group MTG (OM:MTG B) Is Down 5.1% After Mixed Q3 Results and PlaySimple IPO News – Has The Bull Case Changed?

• Modern Times Group MTG AB reported third quarter 2025 results with sales reaching SEK2.99 billion, up from SEK1.44 billion a year ago, but net income declined to SEK39 million compared to SEK174 million the previous year.
• The company also announced a share buy-back program, raised its 2025 organic sales growth guidance, and introduced a transformation plan to optimize its business structure and explore an IPO for its PlaySimple division.
• We’ll now examine how MTG’s upgraded 2025 sales guidance and organizational transformation influence its long-term investment narrative.

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Modern Times Group MTG Investment Narrative Recap

To be a shareholder in Modern Times Group MTG, an investor needs to believe in the sustainability of its organic growth in gaming, the continued appeal of its top-performing titles, and the upside from international and direct-to-consumer expansion. The recent news of strong organic sales growth and raised 2025 guidance reinforces the company’s short-term revenue trajectory and supports the growth catalyst, while the biggest immediate risk, high reliance on a few key games, remains unchanged given ongoing concentration in revenue sources.

The launch of a SEK400 million share buyback stands out among the recent announcements, highlighting MTG’s focus on capital efficiency and shareholder value amid its wider transformation plan. While buybacks may support sentiment, the long-term growth outlook remains tied to how effectively the company can diversify beyond its top revenue generators, particularly as it evaluates new structures like an IPO for PlaySimple.

However, it’s important to keep in mind that compared to the growth story, the risk of over-dependence on a handful of games remains a factor investors should...

Read the full narrative on Modern Times Group MTG (it's free!)

Modern Times Group MTG's outlook projects SEK14.3 billion in revenue and SEK1.2 billion in earnings by 2028. This implies an 18.6% annual revenue growth rate and an earnings increase of SEK1.26 billion from the current earnings of SEK -64.0 million.

Uncover how Modern Times Group MTG's forecasts yield a SEK140.00 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for MTG span a wide range from SEK140 to SEK341.89. Revenue concentration in a few leading titles is a risk that could influence these contrasting investor outlooks, so consider how differently participants assess MTG’s longer-term potential.

Explore 3 other fair value estimates on Modern Times Group MTG - why the stock might be worth just SEK140.00!

Build Your Own Modern Times Group MTG Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Modern Times Group MTG research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Modern Times Group MTG research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Modern Times Group MTG's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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