June 20, 2017 / 7:56 AM / 7 months ago

UPDATE 1-MTG buys games publisher, still sees 2018 break-even for digital arm

(Adds comments from MTG division head)

June 20 (Reuters) - Swedish media firm MTG on Tuesday said it was buying U.S. platform games publisher and developer Kongregate for $55 million and repeated its target of break-even for its digital arm in 2018.

* MTG to acquire U.S. cross platform games publisher & developer Kongregate

* “This will be in 2018,” said Arnd Benninghoff, head of digital arm MTGx, when asked about timing for break-even for the division, repeating previous target

* MTG and Kongregate intend to buy more games developers and Benninghoff said MTG has around 50 companies on its short-list for potential acquisitions

* Benninghoff said MTG has no plans to further increase its 51 pct stake in German games developer InnoGames, in which it bought its first stake last year

* MTG said Kongregate expected to generate net sales of at least $50 million in 2017 with an EBITDA margin of approximately 10 pct

* MTG is acquiring 100 pct of Kongregate Inc from current owner GameStop Corp for an enterprise value of $55 million

* “We are establishing a presence in a gaming industry expected to be worth some USD 130 billion in 2020, of which mobile gaming is the fastest growing segment,” MTG CEO Jorgen Madsen Lindemann said in a statement

* The transaction is subject to regulatory approval andcompletion of certain other closing conditions Source text for Eikon: Further company coverage: (Reporting by Olof Swahnberg, Editing by Helena Soderpalm)

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