Modern Times Group (MTG), the parent company of ESL and DreamHack, has just announced the financial statements for Q1 2020. In one quarter, their revenue reached 924 million krona, down 2 percent when compared to revenue in Q1 2019, which reached 940 million krona . Meanwhile, the company’s total operating costs reached 993 million krona, up 1 percent from operating costs in Q1 2019. So, MTG suffered a loss of 132 million krona. This figure is not much different from the losses that MTG experienced in Q1 2019.
In the first 3 months of 2020, many businesses have experienced disruptions due to the corona virus pandemic. In early April 2020, MTG informed its investors that their business might be affected by the corona virus. At that time, they estimated, the esports division business would experience a decrease of 35-45 percent. However, MTG does not stand idly by. MTG President and CEO, Jørgen Madsen Lindemann said that they had prepared a strategy to adjust to the midst of the pandemic.
“We will carry out the plan in three phases to overcome the pandemic. Our three focuses are ensuring business continuity, operating efficiency, and seizing existing business opportunities, “Lindemann told The Esports Observer.
Lindemann is also optimistic about the company’s finances. Indeed, despite the esports division having problems due to quarantine and the prohibition of holding offline tournaments, MTG still has a gaming business division. During Q1 2020, the MTG gaming business provided stable performance. In fact, at the end of Q1 2020, MTG games got new players. MTG also increased marketing activities in the gaming division.
The MTG esports division experienced disruptions during Q1 2020. Because of Corona, there were a number of esports tournaments that had to be postponed or even canceled. For example, Intel Extreme Katowice 2020 must be held without an audience. Even so, the first 3 months of 2020 were a busy time for MTG. They signed several new contracts.
One of them is Activision Blizzard. With this agreement, ESL will be responsible for the StarCraft II and Warcraft III: Reforged tournaments. In addition, they also collaborated with PUBG Mobile to hold the PUBG Mobile World League (PMWL). They were indeed canceled to cooperate with Huya, a streaming platform from China. However, this did not stop their intention to enter the country with the largest population.