Conference Call Q4 2024: Modern Times Group

Modern Times Group reported a robust fourth‑quarter 2024 performance, with net sales rising 8 % year‑on‑year and 6 % in constant currencies, translating into a 9 % organic revenue growth. Adjusted EBITDA increased by 4 % YoY to 455 SEKm, achieving a margin of 28 %, and the company delivered on its full‑year outlook with total sales up 3 % for FY 2024. The group’s cash conversion rate reached 71 %, and free cash flow after earnout payments stood at 288 SEKm, underscoring strong liquidity and efficient capital deployment.

Revenue concentration remained diversified across franchises. The flagship “Heroes” line grew 37 % YoY, while the word‑game segment experienced a modest decline of 5 %. New puzzle titles and localized word games drove sequential DAU gains, particularly in Q4 2023 and Q1‑Q4 2024, despite a temporary dip in Q2 24 due to the divestment of Kongregate. The company’s cost structure remained disciplined, with CAPEX margin stabilizing around 25‑26 % and operating expenses controlled to maintain high EBITDA margins.

Geographically, the company operates globally with a focus on European and North American markets; data were presented in constant currencies to neutralise FX effects. The analysis relied on reported financial statements, adjusted EBITDA figures, and user‑engagement metrics sourced from internal dashboards. Overall, Modern Times Group demonstrated resilient growth, healthy cash flows, and a solid balance sheet while navigating strategic divestments and expanding its franchise portfolio.