Modern Times Group Q2 2024 Interim Report

Modern Times Group maintains its strategic trajectory as an international mobile gaming entity, balancing a disciplined approach to operational efficiency with a commitment to long-term portfolio growth and industry consolidation. During the second quarter of 2024, the company navigated a complex financial landscape, recording a 1% year-over-year decline in total revenue while simultaneously achieving a 7% increase in adjusted EBITDA to SEK 426 million. This margin expansion, reaching 30%, reflects a deliberate strategy of controlled marketing expenditure and operational focus, even as the company transitions through structural changes such as the divestment of Kongregate to Monumental.

Financial performance metrics reveal a nuanced picture of the company’s health. While a net loss of SEK 111 million was recorded for the quarter—a shift from the profit observed in the prior year—the organization retains a robust liquidity position with SEK 3.14 billion in cash and cash equivalents. Furthermore, the divestment of Kongregate has transitioned into a 30% equity stake in Monumental, signaling a shift toward strategic partnerships. Despite a decline in total daily active users following these divestments, the company successfully realized an 11% increase in average revenue per daily active user, bolstered significantly by the sustained growth of titles such as Warhammer 40,000: Tacticus.

Looking ahead, the company remains committed to its full-year outlook of 1–5% reported sales growth. Management intends to pivot toward more aggressive user acquisition spending in the second half of the year to capitalize on a pipeline of new game launches and platform expansions. By prioritizing shareholder returns through a SEK 400 million share repurchase program, the organization aims to balance aggressive market positioning with fiscal responsibility, maintaining its focus on long-term value creation within the global mobile gaming sector.