Modern Times Group MTG

The Board of Directors and group management are responsible for MTG's strategic direction and ensuring that the business is conducted in a sustainable manner. The Board of Directors has overall responsibility for the organization and management of MTG's business and is responsible for ensuring that MTG's organization is structured in such a way that accounting, asset management and MTG's financial affairs are controlled in a satisfactory manner.

The Board consists of seven members elected by the Annual General Meeting, with no deputies. All Board members, with the exception of the CEO, are independent of the company and senior management. The Chairman of the Board, Natalie Tydeman, and Board member Dawn Airey are independent of major shareholders, while the other Board members are not independent of major shareholders.

The Board has established an Audit Committee and a Remuneration Committee. The Audit Committee consists of three members: Gerard Griffin (Chairman), Natalie Tydeman and Simon Duffy. The Remuneration Committee consists of three members: Dawn Airey (Chairman), Natalie Tydeman and Bert Klanderman.

Business Model

MTG owns and operates six international gaming studios that develop and publish a wide range of popular titles, which are enjoyed by players all over the world. Our games are available on mobile and other platforms, and we generate revenues via in-app purchases, in-app advertising, and from third-party distribution.

Our studios are responsible for developing, launching, marketing, and operating the high-quality games that make up our portfolio. Many of our games are based on popular, international IPs, across a wide range of casual and mid-core genres.

Long-term value creation

Our business model is designed to generate long-term value for our shareholders through consistent profitable growth. The built-in operating leverage in our business model enables us to deliver stronger profits in periods of lower growth. Due to our financial discipline and operational efficiency, we are also highly cash generative.

Nearly all our games are available to consumers on a free-to-play (F2P) basis and we generate a majority of our revenues from in-app purchases and in-app advertising. Our group's main focus is on mobile gaming, which accounts for 76% of total group revenues. An important part of our revenues also comes from games that are available via browser and on third-party platforms like Steam, Apple Arcade, and Netflix.

A synergetic common layer

In order to accelerate further growth by driving synergies and encouraging our studios to share knowledge and best practices with each other, we are building out a synergetic common layer, the "Flow Platform". It is focused on providing our companies with commercial technology, skills and tools that can help them accelerate growth. The acquisition of Plarium is expected to strengthen this part of our strategy.

Accretive & strategic M&A

The recent acquisition of Plarium positioned us as a top 10 mobile games developer in the West and the #1 listed mobile gaming company in Europe. We remain committed to accretive and strategic acquisitions of gaming studios all over the world and it will continue to contribute to our future growth.

Venture Capital Fund

To complement and support our strategy, we also operate a venture capital fund that has invested a total of USD 40 million in a total of 26 companies, ranging from start-up game developers across several genres to MMO (massively multiplayer online games) and game creation platforms in the USA and Europe.

MTG's corporate sustainability strategy reflects our vision of a Gaming Village where entrepreneurs, and the studios they have created, can grow and thrive, supported by clear targets and collaboration. To support our strategy, we have established three pillars that reflect our sustainability-related impacts, risks and opportunities (IROs) within the areas of environment, social and governance.

During 2025 the sustainability strategy, including objectives and targets, will be reviewed following the results of the double materiality assessment (DMA) that were conducted in 2024. The result of the DMA will inform the future sustainability strategy.

During 2025 the sustainability strategy, including objectives and targets, will be reviewed following the results of the double materiality assessment (DMA) that were conducted in 2024. The result of the DMA will inform the future sustainability strategy. These are based on identified sustainability topics as a result of the DMA, industry and globally recognized standards.

Our target is to reduce our value chain emissions (tCO₂e) by 50% by 2032 in line with the Paris Agreement (to limit global warming to 1.5°C). Base year of target is 2022.

Our emissions

Scope 1 and 2 (market-based) emissions (tCO₂e) represent 7.4% of our total emissions. The main source of emissions is our offices' use of electricity. Our Scope 1 and 2 emissions have increased since the previous year.

Scope 3 emissions (tCO₂e) account for 92.6% of our total emissions. Our main sources of Scope 3 emissions in 2024 is use of sold products, business travel and capital goods. Our Scope 3 emissions have increased with 134.4% compared to the 2023 reporting scope. However, we are not able to draw significant conclusions as a result of changes in methodologies and expansion of the reporting scope.

Status in 2024: Total value chain emissions; Scope 1, Scope 2 (market-based) and Scope 3 for 2024 was 4,592.3 tCO2e. We are unable to draw meaningful conclusions due to changes in the methodologies and expansion of the reporting scope.

Outcome 2024: ~48% increase of emissions in Scope 1 and 2 (market-based). +134% increase of emissions in Scope 3.

Less waste

We consistently strive to minimize waste production and promote circularity through recycling and taking advantage of opportunities for reuse. Responsible waste and e-waste management through authorized operators.

Responsible waste and e-waste management through authorized operators.

MTG have clear requirements for basic pay to align with universal labor rights standards, applicable laws, and agreements on working hours and wages. Each portfolio company is responsible for ensuring correct pay grades and remuneration based on local laws, regulations, and standards.

Each portfolio company is responsible for ensuring the well-being of their employees, based on their working methodologies and regional laws and regulations.

Each of our portfolio companies has a workers' council, or a comparable entity, tasked with addressing work-related injuries and health concerns, and proposing improvements. The frequency and format of these meetings vary, based on the structure and needs of each company.

Training and awareness

Training and awareness are one way to increase equality and inclusion. For example, training is carried out for most employees in the areas of unconscious bias and diversity, equality and inclusion (DE&I) as well as training on the responsible use of AI.

Action 2024: Annual training on unconscious bias and diversity, equity, and inclusion (DE&I). Training in responsible AI usage to enhance operations and creativity. Trainee programs to attract young talents from diverse backgrounds. A fair recruitment process to minimize bias.

Our target is to annually increase gender representation to be in line with industry reports. 40% of the workforce to consist of female or non-binary employees. Base year of target is 2022.

In 2024, women and non-binary employees accounted for 28% of the workforce. In 2024, the MTG village decreased by 4.7% in terms of new employees.

Status in 2024: 28% of employees identified as female or non-binary in 2023. ~20% of top and middle management is represented by female or non-binary employees.

In 2024, women and non-binary employees accounted for 28% of the workforce. ~20% of top and middle management is represented by female or non-binary employees.

MTG have clear requirements for basic pay to align with universal labor rights standards, applicable laws, and agreements on working hours and wages. Each portfolio company is responsible for ensuring correct pay grades and remuneration based on local laws, regulations, and standards.

Training stands out as a crucial tool for enhancing expertise. Each of our portfolio companies provides a diverse range of training programs for their employees.

For both MTG and our employees, career development is of high interest. To be able to provide individualized career growth, each of our portfolio companies conducts annual reviews. This ensures that career development remains a focal point. In 2024, 91.9% of employees participated in at least one review.

Each of our portfolio companies has a workers' council, or a comparable entity, tasked with addressing work-related injuries and health concerns, and proposing improvements. The frequency and format of these meetings vary, based on the structure and needs of each company.

Our approach centers on creating workplaces that facilitate physical and mental well-being through a healthy work-life balance. We also aim to provide development opportunities and flexibility, allowing individuals to navigate new life situations while contributing to our Gaming Village.

In recent years, we have sustained a high return-to-work rate, with a majority of employees choosing to stay at MTG after taking parental leave. This is a positive indication that our workplaces are sustainable and flexible in addressing new life situations.

Age classification of games

Games developed by MTG's companies are classified by either the International Age Rating Coalition (IARC) or the age rating systems on platforms such as Google Play and the Apple App Store. However, country or region-specific age limits may vary depending on the markets where the games are published.

Protecting minors' data

All MTG's companies continuously improve their data protection processes in accordance with the framework developed and governed by our Head of Data Protection. Tailoring these processes to individual games, their respective mechanics, and the data collected, each company has developed its own approach to ensure the safeguarding of all data, with a particular focus on protecting the data of minors.

Action 2024: Responsible gaming, with a focus on age classification and protection of minors' data. Strict data protection measures, including limited collection of personal data and compliance with global regulations. Adherence to age restrictions, ensuring games are rated according to international guidelines.

Our games engage passionate player communities across the world. Our studios actively nurture and engage these communities on different digital platforms. They focus on streamers and other content creators and manages both proprietary and public forums where players can engage with our brands and IPs.

We want our gaming environments to be safe and respectful. To achieve this, our gaming companies have implemented policies, guidelines, and tools to address any unacceptable behavior.

We want everyone to be able to play and enjoy our games, including neurodivergent players. This is why our game studios are continuously developing and implementing different settings and mechanics which allow players with, for example, color blindness, visual impairments, or sensory sensitivity to play our games.

In promoting gaming for all, we also include the significance of maintaining a healthy balance between engaging with our games and life outside of our games, particularly for our younger players.

To implement MTG's sustainability strategy all studios must adhere to our policy framework and ensure that all employees participate in training courses for our core policies: the Code of Conduct, Anti-Corruption Policy and Whistleblower Policy.

Policy Framework: Anti-Corruption Policy, Code of Conduct, Whistleblower Policy

During 2025, we will adopt and roll out a Responsible Marketing Policy for the group to address the identified risks and opportunities in connection to our players.

We expect our suppliers and stakeholders to share this commitment. Our ambition is to establish appropriate guidelines and internal structures to ensure that everyone in the group acts responsibly within the scope of their role. We believe that collaborating with our partners and suppliers, and clearly articulating our expectations and future targets will enable us to achieve a more environmentally responsible approach.

To implement MTG's sustainability strategy all studios must adhere to our policy framework and ensure that all employees participate in training courses for our core policies: the Code of Conduct, Anti-Corruption Policy and Whistleblower Policy.

Our target within "respectful" is to improve our sustainability governance by reducing our ESG risk rating to 10 by 2025. Base year of target is 2022.

Status in 2024: 15.9 is our ESG risk rating, in December 2024.