MTG Q1 2026 Investor Presentation

Key insights

7 takeaways

01
MTG reported Q1 2026 net sales of SEK 3,159 million, representing 14% year-over-year pro forma growth and marking the company's sixth consecutive quarter of organic growth.
02
Adjusted EBITDA reached SEK 802 million with a 25% margin, while the company maintained an unlevered free cash flow conversion rate of 78% over the last twelve months.
03
The Casual District segment achieved 29% organic year-over-year growth, driven by the scaling of new titles like Crossword Go and Tile Match, while the Midcore District grew 10% pro forma.
04
User acquisition (UA) spend remained consistent at 38% of total revenue, totaling SEK 1,199 million, with a 48% year-over-year increase in Casual District UA spend.
05
Direct-to-consumer (DTC) revenue streams have expanded to account for 39% of group revenues, reflecting the company's strategic shift in platform distribution.
06
MTG is targeting 5%–8% pro forma revenue growth and a 22%–24% adjusted EBITDA margin for the full 2026 fiscal year.
07
The company is progressing on a potential IPO for its PlaySimple division and is on track to realize USD 20 million in annualized savings from its ongoing Midcore transformation.

Summary

MTG’s Q1 2026 investor presentation outlines a period of strong financial performance, characterized by organic growth and improved profitability across its gaming portfolio. The company reported net sales of SEK 3,159 million, representing a 14% pro forma year-over-year growth. Adjusted EBITDA reached SEK 802 million, yielding a 25% margin, while the company maintained an unlevered free cash flow conversion rate of 78% over the last twelve months. These results reflect the company's ongoing focus on scaling its Midcore and Casual gaming districts, supported by a consistent user acquisition strategy that accounted for 38% of total revenue.

The company’s growth is driven by key titles such as RAID: Shadow Legends and the successful scaling of new casual games like Crossword Go and Tile Match. A significant strategic shift is evident in the company’s distribution model, with direct-to-consumer revenue streams now accounting for 39% of total group sales. This transition, alongside the integration of AI across engineering, marketing, and design, is positioned as a primary competitive advantage intended to raise barriers to scale.

Looking ahead, MTG maintains a positive outlook for the remainder of 2026, projecting pro forma revenue growth between 5% and 8% and an adjusted EBITDA margin of 22% to 24%. Strategic priorities for the year include continued investment in AI, the ongoing transformation of the Midcore district to achieve USD 20 million in annualized savings, and preparations for the potential IPO of its PlaySimple subsidiary. The company remains committed to its medium-term guidance, which targets steady-state growth of 3% to 7% and an unlevered cash conversion rate exceeding 60%.