MAG Interactive AB (publ) publishes Interim Report September – May 2022/2023

STOCKHOLM, June 28, 2023 /PRNewswire/ — MAG shows strengthened profitability, with a 16% revenue growth adjusted for a transfer bonus last year. Net sales reached 89 MSEK and ARPDAU grew 22% compared to the same quarter the previous year.

Summary of the period March 2023 – May 2023:

• The Group’s adjusted Net sales for the period was 88,648 KSEK (76,456 KSEK) an increase of 16%. The comparison period is adjusted for a nonrecurring income of 14.7 MSEK and the adjusted EBITDA and result per share relate to the same nonrecurring income as well as revaluation of incentive programs. See note 4 for details
• Adjusted EBITDA for the period was 23,231 KSEK (10,965 KSEK)
• The Group’s game contribution for the period was 57,451 KSEK (45,841 KSEK), an increase of 25%
• Average revenue per daily active user (ARPDAU) for the period was 7.1 US cents (5.8 US cents), an increase of 22%
• Adjusted result per share during the quarter was 0.31 SEK/share (-0.18 SEK/share)
• The cost of user acquisition for the period was 19,152 KSEK (21,589 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.3 million and 3.4 million respectively during the quarter, a decrease of 12% and 20%

Comment from the CEO in summary

“The revenues in Q3 reached 89 MSEK – a 16% year over year growth when adjusting for a transfer bonus from an advertising partner last year. The adjusted EBITDA for the period more than doubled compared to last year.

The previous quarters’ user acquisition (UA) investments are continuing to pay off and our disciplined approach to fixed costs ensures that the profitability quickly shows when UA investments decrease.

The slowdown of UA investments we see in Q3 highlights the dynamics we often describe during periods of accelerating UA. The older cohorts of users continue to generate revenues and eventually catch up and surpass the quarterly UA investments and contribute to a boost in quarterly profitability. We have gradually invested less in UA since the peak investment level in Q1. As a result, the EBITDA margin has moved from 0% in Q1 to 10% in Q2 and now 26% in Q3.

Our financial goal as a company is to grow significantly faster than the industry average while generating an EBIT margin of 20%. Given the profitability profile we require from our UA operations we would be able to achieve that goal when we get to around 125 MSEK in quarterly revenues. We believe this goal is both achievable and inspiring.

We currently have two games that we internally consider to be soft launch candidates. This means that we have a good view of what the products will become, promising early metrics and a team ready to build the content needed for more scaled up tests.

We have continued our modular approach to game development which we will benefit from even further in the coming year when we expect additional games to be built on top of the same template. More shared source code, modules and game designs significantly increases speed, lowers error rates and gives us confidence that we can greatly improve our throughput of games to the market in 2023/24.

We are proud of our track record of hit games over the last ten years as well as our doubling in size of the business since 2018. But the future is always more exciting than the past and we are confident that the best is yet to come for MAG,” says Daniel Hasselberg, CEO at MAG Interactive.

Summary of the period September 2022 – May 2023 (9 months):

• The Group’s adjusted Net sales for the period was 282,087 KSEK (223,067 KSEK) an increase of 26% The adjustment relates to the same nonrecurring income as in the quarter, adjustment of EBITDA and profit per share includes revaluation of incentive programs
• Adjusted EBITDA for the period was 32,889 KSEK (50,685 KSEK)
• The Group’s game contribution for the period was 133,530 KSEK (147,734 KSEK), a decrease of 10%
• Average revenue per daily active user (ARPDAU) for the period was 7.6 US cents (5.8 US cents), an increase of 30%
• Adjusted earnings per share during the period was -0.24 SEK/share (0.30 SEK/share)

Presentation & Report

On June 28, 2023 at 10:00 CET, CEO Daniel Hasselberg and CFO Magnus Wiklander will present the Q3 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 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 28, 2023.

For additional information, please contact:
Daniel Hasselberg / CEO / +46 (0)8 644 35 40 / [email protected]
Magnus Wiklander / CFO / +46 (0)8 644 35 40 / [email protected]

The following files are available for download:

View original content:https://www.prnewswire.co.uk/news-releases/mag-interactive-ab-publ-publishes-interim-report-september–may-20222023-301865444.html