Modern Times Group MTG (OM:MTG B) Stock Faces Rich P/E As Profitability Narrative Shifts

Modern Times Group MTG (OM:MTG B) has reported new figures for Q2 2026, with revenue of about SEK 3.0b and basic EPS of SEK 0.83 alongside net income of SEK 99m. Over the trailing twelve months, the company has reported revenue of SEK 12.2b and basic EPS of SEK 1.45 tied to net income of SEK 171m. The company’s quarterly revenue has ranged between SEK 2.6b and SEK 3.2b over the past six reported periods, while basic EPS has moved from a loss of SEK 0.90 in Q4 2025 to a profit of SEK 1.16 in Q1 2026. This places the latest quarter within a broader context that puts profitability and margin quality in focus for investors following MTG B’s earnings profile.

See our full analysis for Modern Times Group MTG.

With the latest figures in place, the next step is to evaluate how these margins and earnings trends relate to the most widely followed narratives around Modern Times Group MTG, and to consider where those narratives may need to be updated.

See what the community is saying about Modern Times Group MTG

Profit swings around SEK 524m one off loss

• Over the last 12 months, Modern Times Group MTG reported net income of SEK 171m on SEK 12.2b in revenue, while a one off loss of SEK 524m heavily affected those trailing figures and helps explain why quarterly net income has ranged from a loss of SEK 105m in Q4 2025 to a profit of SEK 138m in Q1 2026.
• Bulls point to analysts expecting earnings to grow about 53.78% per year. However, that optimism sits against a recent five year period where earnings declined 17.4% per year and includes this large one off loss, which means:
  • The move from a loss of SEK 199m on a trailing basis in Q3 2025 to a profit of SEK 171m by Q2 2026 strongly supports the bullish view that the business has shifted back into profitability.
  • At the same time, the size of the SEK 524m one off item makes it harder to judge how much of that turnaround reflects underlying earnings power versus clean, repeatable profit.

Bulls argue that this earnings reset could be the start of a much stronger profit phase for Modern Times Group MTG, so it is worth seeing how their full case lines up with the latest numbers 🐂 Modern Times Group MTG Bull Case.

Revenue steady around SEK 3b per quarter

• Quarterly revenue has stayed in a relatively tight band between SEK 2.6b and SEK 3.2b over the last six reported periods, with Q2 2026 at SEK 2,965m and Q1 2026 at SEK 3,159m, while trailing 12 month revenue increased from SEK 7,125m in Q1 2025 to SEK 12,236m by Q2 2026.
• Bears highlight the risk that Modern Times Group MTG relies heavily on a few key franchises even as analysts project revenue to grow about 4.1% per year, and this tension shows up in the numbers:
  • Reported revenue moving from SEK 2,557m in Q1 2025 to SEK 3,159m in Q1 2026 indicates the top line has scaled, which leans against the bearish concern that the portfolio cannot support further growth.
  • However, the concentration in top titles means that if even one of the larger games slows, the current SEK 2.9b to SEK 3.2b quarterly range could come under pressure, which keeps the bearish caution about revenue concentration relevant.

Skeptics warn that a few games carry much of the load for Modern Times Group MTG, so comparing that concern with the detailed bear case can help you stress test your own view 🐻 Modern Times Group MTG Bear Case.

High 87.7x P/E against SEK 307.41 DCF fair value

• The shares trade on a trailing P/E of 87.7x, well above the European Entertainment industry at 14.1x and a peer average of 59.5x, while still sitting below a DCF fair value of SEK 307.41 and an analyst price target of SEK 167.00 compared with the current share price of SEK 126.00.
• Consensus narrative suggests earnings growth and margin expansion could justify that valuation, and the current data both supports and challenges that idea:
  • The shift from a trailing loss of SEK 114m in Q1 2025 to a profit of SEK 171m by Q2 2026 backs the view that Modern Times Group MTG is now generating positive earnings that can support a higher multiple.
  • Yet the elevated 87.7x P/E means a lot of that expected growth is already reflected in the price, so any slower path from current basic EPS of SEK 1.45 on a trailing basis could leave the valuation looking stretched against industry levels.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Modern Times Group MTG on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and caution around Modern Times Group MTG feels familiar, take a moment to review the data yourself and decide where you stand. Then weigh the balance of potential upsides and concerns with the 4 key rewards and 1 important warning sign.

See What Else Is Out There Beyond Modern Times Group MTG

Modern Times Group MTG combines a high 87.7x P/E with profit volatility linked to a SEK 524m one off loss and concentrated revenue sources.

If this mix of rich valuation and earnings swings makes you uneasy, compare it with companies screened for stronger value signals using the 235 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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