ESL and DreamHack mother or father Fashionable Occasions Group (MTG) reported its monetary outcomes for the second quarter of 2020, recording a continuing web gross sales of kr1.1B SEK ($124M USD) in comparison with the identical quarter final yr.
MTG’s web gross sales for the quarter ended on June 30 had been offset by working prices earlier than depreciation and amortization of kr992M ($112M), which decreased by 4% year-over-year. In whole, the corporate reported a web loss for the interval of kr19M ($2.15M) in comparison with a web lack of kr38M ($4.3M) in the identical interval of final yr (excluding discontinued operations). Damaged all the way down to earnings per share (EPS), the quarter resulted in a lack of kr1.01 ($0.11) per share.
“Our esports vertical continues to ship on the strategic goal to professionalize the industrial a part of esports by onboarding extra strategic companions to our tournaments, regardless of the difficult circumstances. The main focus has been to maneuver our occasions on-line, to be able to guarantee continued attractiveness in direction of all our stakeholders. The vertical carried out higher than anticipated in contrast with the monetary steering for the primary half of 2020,” defined MTG President and CEO Jørgen Madsen Lindemann in a launch. “This was pushed by new agreements with media companions comparable to Twitch, larger esports companies income and stronger efficiency by our enterprise to shopper product. Equally necessary components included good value management and a extra favorable income combine with a bigger excessive margin media element in the course of the quarter.”
Through the quarter, MTG was in a position to safe a number of offers and partnerships, together with a three-year streaming deal for its subsidiaries ESL and DreamHack with Twitch, an settlement with Fortnite developer Epic Video games to launch a brand new DreamHack match sequence that includes Fortnite, and a partnership with Rocket League’s developer Psyonix to associate on the manufacturing of the Rocket League Championship Collection Season X.
Going into H2 2020, MTG expects esports revenues to say no by 30-40% in comparison with the identical interval of 2019 on account of the COVID-19 pandemic and its affect on dwell occasions. The corporate is addressing the expectation of declining esports revenues by persevering with to scale back prices of products bought and stuck prices for ESL and DreamHack. The corporate estimates the financial savings from these measures might be kr325M ($36.71M) for H2 2020 in comparison with H2 2019.