Modern Times Group Q3 2023 Investor Presentation

Modern Times Group’s Q3 2023 investor presentation highlights a period of strong operational performance and financial growth, characterized by a return to organic expansion and improved profitability. The company reported record quarterly sales of 1,494 million SEK, representing a 6% year-over-year increase, and achieved a record adjusted EBITDA of 449 million SEK. This performance prompted an upward revision of the full-year adjusted EBITDA margin outlook to a range of 25–27%, up from the previous guidance of 23–25%.

The portfolio’s growth is driven by consistent execution across various gaming genres, including word games, strategy, and simulation titles. A key strategic development during the quarter was the acquisition of Snowprint Studios, a developer specializing in turn-based tactics games, which is expected to contribute to future scaling and portfolio synergies. While the company maintains a disciplined approach to user acquisition—spending 37% of total revenue on marketing—it has successfully balanced these costs with revenue growth, particularly within its casual gaming segments.

The company maintains a robust financial position, reporting a strong net cash balance and a 52% cash conversion rate on a last-twelve-months basis. Despite facing seasonal headwinds and challenges in the mid-core user acquisition market, the company’s operational momentum remains stable. Looking ahead, the organization is focused on an active pipeline of new game launches, including titles from Hutch and Ninja Kiwi, while maintaining its full-year revenue growth outlook of -3% to +2% on an FX-adjusted basis. This strategy underscores a commitment to both organic development and the integration of new studios into its broader gaming ecosystem.