MAG Interactive Q4 Interim and Year End Report 2024/25

MAG Interactive concluded the 2024/25 fiscal year with a complex financial performance characterized by strong top-line growth offset by significant profitability challenges. The company achieved a 19% year-over-year increase in quarterly net sales, reaching 76.8 MSEK, primarily fueled by the successful scaling of the title Crozzle and the continued resilience of evergreen games such as WordBrain and Quizduel. Despite this revenue momentum, the fiscal year as a whole saw net sales decline to 275.8 MSEK from 283.4 MSEK in the prior period, reflecting a broader volatility in the mobile gaming market.

The primary driver of the company’s financial strain is a sharp escalation in user acquisition costs, which contributed to a quarterly operating loss of 9.9 MSEK and a total annual net loss of 9.4 MSEK. While the company successfully improved average revenue per daily active user by 46% and increased the number of unique paying users, these gains were undermined by a double-digit percentage decline in daily active users. Furthermore, the company’s cash position tightened, ending the fiscal year at 87.5 MSEK compared to 121.8 MSEK the previous year.

To navigate these headwinds, the organization is pivoting toward a data-driven, platform-based development strategy intended to bolster long-term profitability and stabilize its game pipeline. This strategic shift is accompanied by internal efforts to improve financial reporting accuracy, including a retroactive correction for historical platform fee accounting errors. Moving forward, the company remains focused on balancing aggressive growth in high-performing titles with the necessity of managing rising marketing expenditures to restore positive operating margins.