1 free read left. Create a free account for unlimited reading + AI research.

Conference Call Q4 2024: Modern Times Group

Key insights

7 takeaways

01
Modern Times Group achieved 9% organic revenue growth in Q4 2024, contributing to a 3% total sales increase for the full fiscal year.See it on page 4
02
Adjusted EBITDA for Q4 2024 rose 4% year-on-year to 455 SEKm, maintaining a strong 28% margin.See it on page 2
03
The flagship 'Heroes' franchise served as a primary growth driver, recording a 37% year-on-year revenue increase.See it on page 5
04
The company maintained robust liquidity with a 71% cash conversion rate and 288 SEKm in free cash flow after earnout payments.See it on page 10
05
Word-game revenue experienced a 5% decline, while the broader portfolio saw sequential DAU gains driven by new puzzle titles and localized games.See it on page 7
06
Disciplined cost management kept the CAPEX margin stable between 25% and 26% throughout the period.See it on page 9
07
Strategic portfolio adjustments included the divestment of Kongregate, which caused a temporary dip in DAU during Q2 2024.See it on page 7

Summary

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.