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Modern Times Group MTG AB (CHIX:MTGBS) Gross Margin % : 73.99% (As of Sep. 2024)


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What is Modern Times Group MTG AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Modern Times Group MTG AB's Gross Profit for the three months ended in Sep. 2024 was kr1,064 Mil. Modern Times Group MTG AB's Revenue for the three months ended in Sep. 2024 was kr1,438 Mil. Therefore, Modern Times Group MTG AB's Gross Margin % for the quarter that ended in Sep. 2024 was 73.99%.


The historical rank and industry rank for Modern Times Group MTG AB's Gross Margin % or its related term are showing as below:

CHIX:MTGBs' s Gross Margin % Range Over the Past 10 Years
Min: 33.88   Med: 49   Max: 72.95
Current: 72.46


During the past 13 years, the highest Gross Margin % of Modern Times Group MTG AB was 72.95%. The lowest was 33.88%. And the median was 49.00%.

CHIX:MTGBs's Gross Margin % is ranked better than
60.35% of 512 companies
in the Interactive Media industry
Industry Median: 61.32 vs CHIX:MTGBs: 72.46

Modern Times Group MTG AB had a gross margin of 73.99% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Modern Times Group MTG AB was 9.40% per year.


Modern Times Group MTG AB Gross Margin % Historical Data

The historical data trend for Modern Times Group MTG AB's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Modern Times Group MTG AB Gross Margin % Chart

Modern Times Group MTG AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.95 55.52 60.14 72.49 72.95

Modern Times Group MTG AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.10 69.06 73.46 73.63 73.99

Competitive Comparison of Modern Times Group MTG AB's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Modern Times Group MTG AB's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Modern Times Group MTG AB's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Modern Times Group MTG AB's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Modern Times Group MTG AB's Gross Margin % falls into.



Modern Times Group MTG AB Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Modern Times Group MTG AB's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=4252 / 5829
=(Revenue - Cost of Goods Sold) / Revenue
=(5829 - 1577) / 5829
=72.95 %

Modern Times Group MTG AB's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1064 / 1438
=(Revenue - Cost of Goods Sold) / Revenue
=(1438 - 374) / 1438
=73.99 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Modern Times Group MTG AB  (CHIX:MTGBs) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Modern Times Group MTG AB had a gross margin of 73.99% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Modern Times Group MTG AB Gross Margin % Related Terms

Thank you for viewing the detailed overview of Modern Times Group MTG AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Modern Times Group MTG AB Business Description

Address
Skeppsbron 18, P.O. Box 2094, Stockholm, SWE, SE-103 13
Modern Times Group MTG AB invests in esports, mobile games and other digital entertainment. The group's companies offer a wide range of games available to audiences all over the world. MTG's portfolio of IP spans across both the casual and mid-core segments of the gaming market. A vast majority of games are available to consumers on a free-to-play basis, and the group primarily generates revenues from in-app purchases and in-app advertising. The Group operates in Europe, Singapore, USA, India and New Zealand.

Modern Times Group MTG AB Headlines

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