MAG Interactive

Summary of the period March – May 2024:

• Adjusted EBITDA for the period was 18,185 KSEK (21,971 KSEK), a decrease of 3,787 KSEK
• The Group's Net sales for the period was 70,731 KSEK (88,648 KSEK), a decrease of 20%
• The Group's game contribution for the period was 48,147 KSEK (57,451 KSEK), a decrease of 16%
• Average revenue per daily active user (ARPDAU) for the period was 6.3 US cents (7.1 US cents), a decrease of 11%
• Earnings per share during the quarter was 0.13 SEK/share (0.31 SEK/share)
• Adjusted earnings per share during the quarter was 0.13 SEK/share (0.25 SEK/share)
• The cost of user acquisition for the quarter was 12,334 KSEK (19,152 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.1 million and 2.9 million respectively during the quarter, a decrease of 13% and 14%

Comment from the CEO in summary

“We are pleased to report yet another profitable quarter, generating cash and maintaining stable daily active users (DAU) quarter over quarter. We saw Q3 revenues amount to 71 MSEK, a 2% decline relative to Q2. DAU remained steady at 1.1M – the same as Q2 and Q1 – showcasing the robustness of our core business. User acquisition (UA) investments increased by 4 MSEK relative to Q2, which is positive, but not quite at the level needed to get the business back to growth mode. Our cash position improved to 116 MSEK while EBITDA stood at 18 MSEK, resulting in a healthy EBITDA margin of 26%.

“Our new crossword game Crozzle’s soft launch continues to develop well. The game shows strong retention as well as healthy return on UA investments. These positive results encourage us to gradually scale up marketing efforts and expand the tests to additional markets. While not yet globally launched, we expect Crozzle to achieve this milestone in the coming months. The team’s hard work is paying off and if the game progresses on this trajectory, Crozzle will become a strong long-term addition to our word game portfolio.

“Our leading live games, QuizDuel and Wordzee, continue to evolve with new features and improvements. We have also been able to invest slightly more in UA during Q3 behind these games compared to Q2. Our UA strategy is to maximize investment volumes as long as the predicted returns stay within our target of full payback within 180 days.

“We are working hard to unlock performance marketing opportunities to open another chapter of growth for the company. While the UA has still not reached the levels we aim for, the products are showing a great momentum in launching new features that positively impact performance. 

“The stable, mature cohorts of users and revenues built up over the last decade allow us to invest in long-term growth and continue innovating our game development approach. Our modular game-making strategy, which we’ve detailed over the past year, is becoming the cornerstone of future development.

“We remain committed to developing our game-making capabilities and delivering exceptional experiences to our loyal players. A strong position with a loyal player base combined with a talented and dedicated team gives us confidence in our ability to execute on our plans. We look forward to seeing the impact of our new approach to building games as well as the continuous build up of Crozzle,” says Daniel Hasselberg, CEO at MAG Interactive. 

Summary of the period September 2023 – May 2024 (9 months):

• Adjusted EBITDA for the period was 57,974 KSEK (28,668 KSEK), an increase of 29,305 KSEK
• The Group's Net sales for the period was 219,362 KSEK (282,087 KSEK), a decrease of 22%
• The Group's game contribution for the period was 156,485 KSEK (133,530 KSEK), an increase of 17%
• Average revenue per daily active user (ARPDAU) for the period was 6.6 US cents (7.6 US cents), a decrease of 13%
• Earnings per share during the period was -0.18 SEK/share (-0.23 SEK/share)
• Adjusted earnings per share during the period was 0.81 SEK/share (-0.43 SEK/share)
• The cost of user acquisition for the period was 31,774 KSEK (111,477 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.1 million and 3.0 million respectively during the period, a decrease of 11% and 16%

Presentation & Report
On June 26, 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_hasselberg or @maginteractive. For more information and to read the full report please visit https://www.maginteractive.com/investors/investor-relations/reports/.

This is information that MAG Interactive 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 below, at 08:00 on June 26, 2024.