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Beskrivning
| Land | Sverige |
|---|---|
| Lista | Mid Cap Stockholm |
| Sektor | Sällanköp |
| Industri | Gaming |
Reported revenues double in Q2, with a 117% year over year increase in constant currencies on the back of consolidation of Plarium. Strong organic growth1 of 9% in Q2, and 8% for the first six months of 2025. Business momentum remained high, driven by further expansion of key word games in new geographies and new word games, by continued innovation leading to strong growth in Warhammer 40,000: Tacticus and Heroes of History, and a highly successful season reset of F1 Clash. User acquisition spend in our original studios (UA) up by 52% year over year in constant currencies as we continued to invest in growth. Total UA spend represented 36% and 37% of revenues in Q2 and H1 respectively. Total adjusted EBITDA was up 50% year over year to SEK 640 million in Q2 and up 53% to SEK 1,256 million in H1, with operating margins of 22% and 23% respectively. MTG has full confidence in, and reiterates its outlook for, the full year 2025 of organic sales growth of 3-7% and total adjusted EBITDA margin for the full group of 21-24%.
Financial highlights Q2
- Net sales increased by 103% to SEK 2,911 (1,437) million year over year, and were up 117% in constant currencies with negative currency impact of -14%. Organic year over year growth of 9%
- UA spend of SEK 1,054 (470) million corresponding to 36% (33%) of revenues, and up 52% year over year for our original studios in constant currencies
- Adjusted EBITDA up by 50% year over year to SEK 640 (426) million with an adjusted EBITDA margin of 22% (30%). Adjustments included SEK 44 million for M&A transaction costs and revaluation of put/call options
- Reported EBITDA of SEK 596 (420) million and EBIT of SEK 222 (281) million impacted by increased amortization levels of intangible assets arising from the acquisition of Plarium, primarily related to RAID: Shadow Legends
- Net financial items of SEK -130 (-287) million, driven mainly by MTG's outstanding liability of the Class C shares held as part of the PlaySimple transaction and net interest amounted to SEK -76 (33) million
- Tax amounted to SEK -153 (-105) million
- Total net income of -61 (-111) million
- Cash flow from operations of SEK 325 (374) million. Levered cash conversion of 50% and unlevered cash conversion of 48% for the 12-month period ended 30 June 2025
- Cash and cash equivalents at the end of the period amounted to SEK 1,230 (3,144) million with a net financial debt of SEK 3,183 (-2,980) million
Financial highlights first half-year
- Net sales increased by 90% to SEK 5,468 (2,884) million and were up 98% in constant currencies
- UA spend of SEK 2,013 (997) million corresponding to 37% (35%) of revenues
- Adjusted EBITDA of SEK 1,256 (822) million with an adjusted EBITDA margin of 23% (28%)
- Reported EBITDA of SEK 1,190 (797) million and EBIT of SEK 513 (517) million
- Net financial items of SEK -215 (-444) million, of which SEK -93 (66) was interest income
- Total net income of SEK 4 (-142) million and total basic earnings per share of SEK 0.03 (-1.17)
- Cash flow from operations of SEK 502 (667) million
- Outlook for 2025 maintained, organic sales growth is 3-7%, and an adjusted EBITDA margin for the full group to be between 21-24%
Financial overview
| (SEKm) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 |
| Net sales | 2,911 | 1,437 | 5,468 | 2,884 | 6,015 |
| EBIT | 222 | 281 | 513 | 517 | 901 |
| EBITDA | 596 | 420 | 1,190 | 797 | 1,476 |
| Adjusted EBITDA | 640 | 426 | 1,256 | 822 | 1,666 |
| Net income | -61 | -111 | 4 | -142 | -210 |
| Cash flow from operations | 325 | 374 | 502 | 667 | 1,340 |
| Basic earnings per share (SEK) | -0.52 | -0.92 | 0.03 | -1.17 | -1.74 |
| Diluted earnings per share (SEK) | - | -0.91 | - | -1.17 | -1.74 |
| Growth | |||||
| Sales growth, % | 103% | -1% | 90% | 4% | 3% |
| Changes in FX rates | -14% | 0% | -8% | 0% | 0% |
| Sales growth at constant FX | 117% | -1% | 98% | 3% | 3% |
| of which organic growth | 9% | -7% | 8% | -2% | -1% |
1 Organic growth is defined as revenues from the studios MTG owned throughout the whole of 2024 and is calculated in constant currencies
President & CEO's comments
Continued investment in key titles and early scaling games delivering accelerated organic growth
I am very happy to deliver another quarter of strong, accelerated, profitable growth and healthy cash generation. Our scaled but disciplined marketing efforts, combined with the strength and quality of our studios and games, resulted in organic revenues growing by 9% year over year in Q2, whilst maintaining healthy operating margins at 22% for the quarter.
Our organic growth once again came from both our casual and midcore portfolios. Our casual Word Games continued to grow, driven almost equally across the expansion of established games in new geographies, with Word Search Explorer and Crossword Jam in particular performing strongly, and the success of new games.
On the midcore side, we delivered strong continued growth from Warhammer 40,000: Tacticus and our new title Heroes of History. Our Racing flagship title F1 Clash also delivered a strong performance, with the season reset in May one of its best ever. Revenues in Forge of Empires, our second largest game, were however down year over year, due to in-game events not performing in line with expectations during the quarter.
Our total growth in the quarter was supported by our largest title RAID: Shadow Legends, which was part of the recent Plarium acquisition and consolidated from February this year. In addition to the consolidation impact, the game's revenues were slightly up year over year in Q2, as the team delivered several strong events in the quarter.
As a result, total revenues were up 117% year over year in Q2 and 98% for the first six months of the year in constant currencies. Our reported revenues were impacted by the significant weakening of the US dollar in Q2. The currency impact amounted to -14% in the quarter, and our total reported sales were therefore up 103% year over in Q2, and up 90% for the first six months of the year.
Our performance in Q2 continued the strong momentum we had in Q1 and we are therefore confident in our ability to deliver on our full year outlook for organic revenue growth of 3-7%.
Healthy return levels from H1-weighted UA spend
We invested a total of SEK 1,054 million in user acquisition (UA) in Q2, and SEK 2,013 million in the first half of the year, corresponding to 36% and 37% of our total revenues for each respective period. UA spend for our original studios was up 52% year over year in Q2 in constant currencies, and up slightly from the first quarter of the year.
The primary drivers of our increased organic UA spend were our ongoing investments in word games in new markets, in new casual titles, in Heroes of History and Warhammer 40,000: Tacticus. These investments continue to be done at healthy ROAS (return on advertising spend) levels. I am very happy with the sustained traction we are seeing in our key growing games and our ability to accelerate our marketing investments opportunistically.
We reported adjusted EBITDA of SEK 640 million in Q2 and SEK 1,256 million for the first six months of the year. Our operating margins of 22% and 23%, for Q2 and H1 respectively, mainly reflected the increased level of organic UA investments mentioned above. We therefore also remain confident in our full year outlook for operating margins of 21-24%.
We reported unlevered cash conversion of 48% and levered cash conversion of 50% for the 12-month period ended 30 June 2025. The cash conversion levels reflected recent higher M&A costs and withholding tax payments in both Q2 and Q1.
We are evolving our operating model for further growth
The core focus of our studios is to deliver fun and engaging experiences and gaming content to our players. At the same time, our vision has always been to create a more integrated gaming group that supports the strengths of our individual studios with the power of scale and shared services. The acquisition and integration of Plarium presents us with a major, unprecedented opportunity to accelerate our journey towards this vision.
Our strategic focus in Q2 has therefore been on the rapid but thorough evaluation of our capabilities, tech stacks and toolkits across the group, which began in Q1 following closing the Plarium transaction. We have now finished the first phase of this assessment and are working on our gameplan for evolving our operating model and creating a scalable shared platform. We have also begun to implement select initiatives across the group.
I remain firmly convinced that the work we are doing now will position MTG as one of the most attractive partners and effective ecosystems for gaming entrepreneurs who want to accelerate their journey and join a fantastic community of industry peers.
I look forward to sharing more about how we are evolving our operating model and the long-term value it will create at our Capital Markets Day on 9 October.
We also maintain our focus on finding the right balance between investing in organic growth, including maintaining a solid pipeline of new games in development and early scaling, AI initiatives and in potential M&A opportunities. All of this needs to be balanced with reducing our debt to enhance our balance sheet and optionality - all with the aim of creating value for our shareholders.
I am convinced that we have the strategy, teams, games and tools that we need to succeed in our ambitions.
Thank you for your time and for your support on our journey.
Maria Redin
Group President & CEO, Modern Times Group MTG AB
2025 outlook reiterated
MTG's outlook for the full year 2025 is for organic sales growth (sales from MTG's businesses prior to the acquisition of Plarium, in constant currencies) to be within the range of 3% to 7%.
MTG intends to continue driving organic growth through continued scaled, but disciplined, marketing. The group therefore expects its full year, total reported adjusted EBITDA margin (including Plarium) to be within the range of 21% to 24%. The final margin will depend on the returns on, and levels of investment in, the marketing of new and established games.
Shareholder information
Financial calendar
| Item | Date |
| Capital Markets Day 2025 | 9 October 2025 |
| Q3 & 9 Months 2025 Financial Results report | 13 November 2025 |
Questions?
Anton Gourman, VP Communications
Direct: +46 8 562 000 50, anton.gourman@mtg.com
Conference call
MTG will host a livestream and conference call at 10.00 CET today, on 18 July 2025. The call will be held in English.
How to join:
- To participate via livestream, please use this link.
- To join via phone, please register using this link. After you've registered, you'll receive the dial-in number and conference ID to access the teleconference.
- You can ask questions via phone during the teleconference or by using the livestream Q&A tool.
Modern Times Group MTG AB (publ) - Reg no: 556309-9158 - Phone: +46 (0) 8-562 000 50
MTG (Modern Times Group MTG AB (publ)) (www.mtg.com) is an international mobile gaming group that owns and operates gaming studios with popular global IPs across a wide range of casual and mid-core genres. The group is focused on accelerating portfolio company growth and supporting founders and entrepreneurs. MTG is an active driver of gaming industry consolidation and a strategic acquirer of gaming companies around the world. We are born in Sweden but have an international culture and global footprint. Our shares are listed on Nasdaq Stockholm ("MTGA" and "MTGB").
This information is information that Modern Times Group MTG AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 7:30 CET on July 18, 2025.
This interim report contains statements concerning, among other things, MTG's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent MTG's future expectations. MTG believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to MTG's market position; growth in the gaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of MTG, its group companies and the gaming industry in general. Forward-looking statements apply only as of the date they were made, and, other than as required by applicable law, MTG undertakes no obligation to update any of them in the light of new information or future events.