Modern Times Group MTG AB: Q2 2025 Conference Call Presentation

Modern Times Group (MTG) reported a 117 % increase in net sales on a constant‑currency basis for Q2 2025, with reported revenue up 103 % despite a –14 % negative foreign‑exchange impact. The growth was driven by the consolidation of Plarium and organic expansion within key franchises such as Word Games, Heroes of History, Warhammer 40k, Tacticus and F1 Clash. Word Games alone contributed a 9 % organic rise, while Plarium’s addition doubled MTG’s revenue year‑on‑year. Franchise performance data show that the Racing and Plarium titles were the largest contributors, with revenue growth rates ranging from +5 % to +18 % across top titles.

Operating performance remained robust, with an adjusted EBITDA margin of 22 % in Q2 2025 versus 20 % in the prior year, and a 50 % YoY increase in adjusted EBITDA (63 % on constant currencies). CAPEX as a percentage of revenue fell to 20 %, supporting the margin expansion. Cash flow metrics indicate strong liquidity: free cash flow of SEK 280 m in Q2 2025 against a leverage ratio of 4.6, and an unlevered cash conversion rate approaching 48 %. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the trailing twelve months reached SEK 2.1 bn, up 23 % YoY.

MTG’s outlook for 2025 remains unchanged: full‑year organic sales growth of 3–7 % in constant currencies, an operating margin target of 23 %, and a full‑year adjusted EBITDA margin projected between 21–24 %. The strategy focuses on continued organic acquisition of Plarium, disciplined marketing spend and leveraging the expanded portfolio to sustain growth across its gaming segments.