WEBULL

Results: Modern Times Group MTG AB Delivered A Surprise Loss And Now Analysts Have New Forecasts

Simply Wall St · 07/23 04:14

There's been a notable change in appetite for Modern Times Group MTG AB (STO:MTG B) shares in the week since its quarterly report, with the stock down 14% to kr101. Revenues fell 4.2% short of expectations, at kr2.9b. Earnings correspondingly dipped, with Modern Times Group MTG reporting a statutory loss of kr0.52 per share, whereas the analysts had previously modelled a profit in this period. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Modern Times Group MTG after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

earnings-and-revenue-growth
OM:MTG B Earnings and Revenue Growth July 23rd 2025

Taking into account the latest results, the most recent consensus for Modern Times Group MTG from four analysts is for revenues of kr11.6b in 2025. If met, it would imply a sizeable 35% increase on its revenue over the past 12 months. Modern Times Group MTG is also expected to turn profitable, with statutory earnings of kr3.24 per share. Before this earnings report, the analysts had been forecasting revenues of kr11.8b and earnings per share (EPS) of kr4.86 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

View our latest analysis for Modern Times Group MTG

It might be a surprise to learn that the consensus price target was broadly unchanged at kr134, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Modern Times Group MTG analyst has a price target of kr140 per share, while the most pessimistic values it at kr125. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Modern Times Group MTG is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Modern Times Group MTG's rate of growth is expected to accelerate meaningfully, with the forecast 81% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Modern Times Group MTG to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Modern Times Group MTG. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Modern Times Group MTG going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Modern Times Group MTG's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.