• Adjusted EBITDA for the period was 19,708 KSEK (8,445 KSEK), an increase of 11,263 KSEK
• The Group's Net sales for the period was 71,886 KSEK (96,113 KSEK), a decrease of 25%
• The Group's game contribution for the period was 53,474 KSEK (42,944 KSEK), an increase of 25%
• Average revenue per daily active user (ARPDAU) for the period was 6.6 US cents (7.8 US cents), a decrease of 15%
• Earnings per share during the quarter was -0.48 SEK/share (-0.12 SEK/share)
• Adjusted earnings per share during the quarter was 0.19 SEK/share (-0.16 SEK/share)
• The cost of user acquisition for the period was 8,248 KSEK (41,171 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.2 million and 3.1 million respectively during the quarter, a decrease of 11% and 17%

Comment from the CEO in summary

"We can look back at a quarter that was in most regards an expected continuation of the previous quarter. The live games continue to be stable compared to Q1 in terms of daily active users (DAU) and the overall business continues to be profitable with a solid profit margin and healthy cash generation. Our quarterly revenues were 72 MSEK, and we generated an adjusted EBITDA of 20 MSEK which makes for a 27% adjusted EBITDA margin. The adjusted cash flow of the quarter was 10.2 MSEK.

"The new crossword game Crozzle, which was soft launched in December of 2023, is our big bet to get a new fresh product into the market. This is also the first game to come out of our modular game making process, making it even more exciting. We believe that this competitive crossword game offers an opportunity to generate attention from word game lovers as it offers something completely new in the market.

"Metrics in the early stages of the soft launch look promising and in line with our expectations. We will need a few more months to balance the game, add more content and fine tune the marketing campaigns before making the final call if the game can go global or not. We aim to get the game to an official global launch before the next quarterly report, but, as always, we will be informed by data when making our decision.

"We invested 8 MSEK in UA during Q2. This is well below our ambition level, which is closer to 30 MSEK per quarter. The majority of the investments were behind Wordzee, followed by QuizDuel and Tile Mansion. The key to unlocking the higher levels of UA investments that we aim for is continuous improvement of our games as well as optimization of our advertising creatives.

"We have a more complex quarter to report than usual due to the outcome of processes relating to the RnD claims (Forskningsavdrag) we have claimed during the last few years. As previously communicated we have decided to reverse and repay previous claims  - as our  applications were rejected. This doesn't mean that we will lay down our claims against the Swedish Tax Agency as we still believe we are entitled to said claims.

"Our strategic focus continues to bear fruit, evidenced by sustained profitability and robust cash flow. In a world where some companies struggle with debt exposure and challenging balance sheets, we are profitable and debt free. 

"Crozzle's positive soft launch development as well as the exciting roadmaps for continued improvements of our live games make for a strong first half of our financial year from a product perspective. Our ambition now is to translate this momentum into renewed growth of UA investments to take us closer to our long term goal of 500 MSEK of yearly revenues.

"Thanks to everyone at MAG for your great contributions this quarter and to our shareholders for the continued support of our mission to entertain millions of players around the world," says Daniel Hasselberg, CEO at MAG Interactive.
 

• Adjusted EBITDA for the period was 38,823 KSEK (6,697 KSEK), an increase of 32,126 KSEK
• The Group's Net sales for the period was 148,631 KSEK (193,439 KSEK), a decrease of 23%
• The Group's game contribution for the period was 108,337 KSEK (76,079 KSEK), an increase of 42%
• Average revenue per daily active user (ARPDAU) for the period was 6.7 US cents (7.8 US cents), a decrease of 14%
• Earnings per share during the period was -0.31 SEK/share (-0.54 SEK/share)
• Adjusted earnings per share during the period was 0.32 SEK/share (-0.63 SEK/share)
• The cost of user acquisition for the period was 19,440 KSEK (92,325 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.1 million and 3.0 million respectively during the period, a decrease of 10% and 17%

Presentation & Report

On April 17, 2024 at 10:00 CET, CEO Daniel Hasselberg and CFO Magnus Wiklander will present the Interim Report live on Twitch. The presentation will be held in English. Link to the Twitch feed: www.twitch.com/maginteractive. Daniel Hasselberg will also take questions on the social media platform X, formally known as Twitter, during the course of the day, write to @d_hasselbergor @maginteractive.For more information and to read the full report please visit https://www.maginteractive.com/investors/investor-relations/reports/.

This disclosure contains information that MAG Interactive is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 17-04-2024 08:00 CET.