Modern Times Group Q2 2023 Interim Report

Modern Times Group demonstrates financial resilience and strategic focus during the second quarter of 2023, characterized by a 9% sequential revenue growth and an adjusted EBITDA of SEK 397 million. While the company experienced a 2% year-over-year decline in constant currency revenue, the overall performance remains bolstered by high profitability, evidenced by an adjusted EBITDA margin of 27%. The organization maintains a robust liquidity position with SEK 3.87 billion in cash and cash equivalents, providing the necessary capital to support ongoing user acquisition efforts and future strategic acquisitions.

The company’s operational success is anchored by its mobile gaming portfolio, which now accounts for 77% of total sales. This shift toward casual gaming is driven primarily by the strong performance of the PlaySimple word games franchise and the successful integration of Ninja Kiwi titles, including the launch of Bloons TD6 on Netflix. Although year-over-year user metrics show a slight decline, the company achieved a 14% increase in average revenue per daily active user, signaling effective monetization strategies despite challenges in mid-core player retention.

Operating as an international mobile gaming entity listed on Nasdaq Stockholm, the group continues to prioritize operational efficiency and industry consolidation to drive long-term shareholder value. Management maintains its full-year outlook, balancing the management of contingent consideration liabilities from previous acquisitions against the goal of sustained portfolio growth. The company remains committed to its strategic transition away from browser-based titles toward a mobile-first model, with the next financial update scheduled for October 2023.