Modern Times Group Q1 2024 Interim Report

Modern Times Group achieved a robust financial performance in the first quarter of 2024, characterized by an 11 percent increase in total revenue to SEK 1,447 million and a significant 51 percent rise in adjusted EBITDA to SEK 396 million. This growth trajectory, which resulted in an improved adjusted EBITDA margin of 27 percent, was primarily fueled by disciplined user acquisition strategies and effective live-ops management across the PlaySimple and InnoGames portfolios. Organic sales growth reached 4 percent, reflecting the underlying strength of the company’s core gaming franchises in the strategy, simulation, and word game segments.

Operational stability remained a key theme throughout the period, with daily active users holding steady at 6.5 million. Despite the flat user base, the company successfully increased average revenue per daily active user by 9 percent year-over-year. Strategic portfolio adjustments further bolstered the firm’s financial position, including the divestment of Kongregate to Monumental and the post-quarter acquisition of AutoAttack Games by the Ninja Kiwi subsidiary. These moves, combined with the consolidation of Snowprint, underscore a broader strategy of refining the gaming portfolio to maximize profitability.

Looking ahead, the company maintains a positive outlook for the remainder of 2024, projecting revenue growth between 1 and 5 percent and an adjusted EBITDA margin target of 26 to 29 percent. This guidance is supported by a healthy pipeline of upcoming game launches and platform expansions currently in development or soft launch. To further enhance shareholder value, the company has initiated a new SEK 100 million share repurchase program, signaling confidence in its long-term financial health and operational execution across its global gaming segments.