mtg invests in esl€¦ · viewership phenomenon with >200m ... growing community. image or...

MTG invests in ESL

Image or colour fill goes on top of this

• Industry• Meet ESL• Strategic rationale• Transaction highlights

and summary

#whatsnext


• Organised competitive digital gaming

• Players and teams from all around the world gather to compete in popular game titles

• Big audiences watch the events both live and via live streaming from all over the world

Esports what?

Image or colour fill goes on top of thisIt’s all aboutthe esports

• A spectator sport –live at stadiums & online

• Fan base estimated to grow to 260 million people all over the world in 2015

• Young and rapidly expanding industry with strong brands & growth potential

8.2 million unique viewers watched the League of Legends World Championship Series finals!

Live through Twitch

58%of Twitch users spend more than

20 hours per week watching live streams

44%of occasional esports viewers

do not play esports titles themselves


Gaming is one of the biggest digital video categories globally, and has almost 50% of YouTube views in

MTG’s countries

Gaming

Music

Comedy

Other

* Sweden, Norway, Denmark, The Baltics, Czech Republic and Bulgaria

Top YouTube content categories by views per month in MTG’s core markets

Connecting with key demographics

Community Entertainment

It’s exciting

High level of gaming

I can find like-minded peopleLearn new strategies

It’s relaxing

Learn tacticsExperiencing it live

I like the atmosphereI like the competition

Cheering on my favourite gamers

Learn from professionals

It’s entertaining

It's fun

It’s interestingTeam spirit

I can compare myself

Following the emotions of players

Alternative to other sports

Alternative to TV

It’s just great

It's

my

hobb

y

Improve my skills

The actionIt’s free

I am a fan of my team

It is part of my lifeI like the commentators

The thrill

Escaping to another worldThe players are cool

I can

see

wha

t oth

ers

do

Curiosity

There is always something new going on

I don't have to play myself Observing the player's development

New techniques

Bet

ting

Contact with my favourite players

Iden

tifi

cati

on

The special feeling

Motivation for my own playing

Insp

irat

ion

Variety of content

It’s funny

It’s coolIt’s authentic

Innovation

New tips and tricks

I want to be up-to-date

Community allows me to learn for real life

I don’ have to play myself

People get a chance to be seen

I feel like belonging to the gaming scene

Viewers & players connect!It’s entertaining and fun!

Being part of a global community!You learn from the pros!


Esports is a viewership

phenomenon with >200m viewers…

Enthusiasts per sport (millions)

Source: Newzoo

7694

147151

186

89

145

IceHockey

AmericanFootball

Volley-ball

eSportsenthu-siasts

Hand-ball

Swim-ming

20142017F

…already rivaling many traditional sports

A growth industry

0

50

100

150

200

250

300

350

400

2012 2013 2014 2015e 2016e 2017e0

50

100

150

200

250

300

350

400

450

500

2012 2013 2014 2015e 2016e 2017e

Global esports audience (millions)

Global esports revenues(US$ millions)

Source: Newzoo


• Industry• Meet ESL• Strategic rationale• Transaction

highlights and summary

#whatsnext


Turtle Entertainment:

A clear #1 position in its markets

ESL is one of the world’s best known esports brands

Millions of passionate fans & a growing community


• Founded in 2000 & HQ in Cologne, Germany

• 300 employees• 16,000 hours of content

broadcast in 2014 & over 70 million unique viewers reached in last 12 months

• Growth of 50% to EUR 50 million of revenues expected in 2015

Turtle runs some of the world’s biggest esports brands spearheaded under the ESL and Intel Extreme Masters

brands

0

10

20

30

40

50

60

2012 2013 2014e

Mill

ion

hour

s

15%

10%

5%

4%

4%

4%4%

4%3%3%3%

41%

United States

Germany

Poland

Philippines

Sweden

United Kingdom

France

Canada

Russia

Brazil

Spain

Rest of world

ESL content consumed Geographical traffic breakdown

ESL occupies a key part of the value chainGame studios Content producers & league

arrangers Distribution

VOD &MCN

Live linear

Live digital

Teams

Leagues

Branded co-operationsPartnerships

Partnered with the industry’s strongest brands

Run by a team of entrepreneurs with great industry experience & reputation

Ralf ReichertManaging DirectorRalf is a visionary leader who was a founder and player on one of the world’s premiere esports teams prior to co-founding Turtle Entertainment in 1999

Heinrich ZetlmayerManaging DirectorHeinrich is a proven leader with over 17 years of experience as a consultant and business services expert prior to joining Turtle in 2011. Heinrich has previously served as VP at ADL and as VP at IBM

Sebastian WeishaarSVP InternationalSebastian has been with the company for over 10 years and currently leads business development with all major game publishers as well as the international business of Turtle

Craig Levine, EVP Turtle AmericaCraig has worked with esports his entire career which started with him founding the esports team 3d in 2000 which later sold to Turner Sports 2006, later co-founded ESS agency as an agency in esports and the Counter-Strike community ESEA

Bernhard MogkManaging Director 4Media networksBernhard is co-founder and Managing Director of 4Media networks and has spent his career in the media sales industry, previously working at e.g. Sevenload GmbH (a Burda Digital company) and RTL

Nik AdamsSVP Sales & Business DevelopmentNik is a co-founder of the sales arm of Turtle, 4Media networks. Nik is a former pro gamer and commentator / analyst for esports


• Industry• Meet ESL• Strategic rationale• Transaction

highlights and summary

#whatsnext


Esports: a fast growing premium

entertainment segment with a

devoted fan base

Esports is a very exciting market• A n engaged and growing fan base • Gaming is already one of the largest

categories on YouTube• Esports market estimated to USD 260

million in 2015 with significant growth opportunities & plenty of room to grow revenues per fan

Great strategic fit • A passionate fan base and a true

spectator sport –just like football• Product offering and audience highly

complementary to MTG

Attracts an audience that watch limited

linear TV10-20

21-35

21-35

36-65

36-65 10-20

Esports viewers by age and gender (Western markets)

15-24 year olds spend 65% of their viewing time online using video services…

…and they watched 20% less linear TV in 2014 than in 2012

Source: Newzoo


The entertainment of choice for digital

natives

Average time spent watching esports per viewer

19 times per month

2.2 hours per session

Image or colour fill goes on top of thisIn line with

MTG strategy

• In line with digital strategy to invest in growing and relevant digital businesses in key demographics

• Moving up the value chain with strong international IP & utilising expertise to expand product range & content offering

• Ability to lean on experience in monetising sports rights to drive ESL revenues & content utilisation


• Opportunity to continue growing ESL as a global leader in in a very exciting market

• Attractive strategic fit with significant expansion potential

• EUR 78 m cash consideration for 74% shareholding in Turtle Entertainment

Transaction highlights

More questions?Media enquiries:

Per LorentzT +46 8 562 025 00 | M +46 73 699 27 [email protected]

Media enquiries:

Per LorentzT +46 8 562 025 00 | M +46 73 699 27 [email protected]

Investor enquiries:

Stefan LyckeT +46 8 562 025 00 | M +46 73 699 27 [email protected]

Investor enquiries:

Stefan LyckeT +46 8 562 025 00 | M +46 73 699 27 [email protected]

mtg invests in esl€¦ · viewership phenomenon with >200m ... growing community. image or...

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