Modern Times Group Q4 2023 Investor Presentation

Key insights

6 takeaways

01
Modern Times Group achieved record full-year adjusted EBITDA of 1,548 million SEK, maintaining a 27% margin.See it on page 8
02
Q4 2023 net sales reached 1,571 million SEK, driven by 7% comparable growth and 3% organic growth year-over-year.See it on page 4
03
The company merged its studio Kongregate into Monumental, retaining a 30% stake in the combined entity to optimize its asset structure.See it on page 3
04
MTG plans to launch nine new games and three platform expansions in 2024 to support its long-term growth strategy.See it on page 10
05
The company maintains long-term financial targets of 7% to 10% organic revenue CAGR and an average adjusted EBITDA margin of 23% to 25%.See it on page 11
06
Operational performance was supported by a 59% full-year cash conversion rate and disciplined user acquisition spending for the Tacticus title.See it on page 7

Summary

Modern Times Group’s Q4 2023 investor presentation outlines the company’s financial performance and strategic shifts, confirming that the organization met its full-year outlook. The company achieved record adjusted full-year EBITDA of 1,548 million SEK, representing a 27% margin. For the fourth quarter, the company reported 1,571 million SEK in net sales, reflecting 7% comparable growth and 3% organic growth year-over-year. This performance was bolstered by strong results in word games and the successful integration of the Snowprint acquisition.

A significant strategic development highlighted in the report is the merger of the US-based studio Kongregate into the Austin-based developer Monumental. Under this agreement, the company will retain a 30% stake in the combined entity, which will not be treated as an associated company. This move aligns with the company’s broader strategy to focus on its core gaming portfolio while optimizing its asset structure.

Operational highlights include a disciplined approach to user acquisition, which saw increased spending to support the scaling of the Tacticus title, alongside a robust cash position with a 59% cash conversion rate for the full year. Looking ahead to 2024, the company plans to leverage a substantial development pipeline, including nine new game launches and three platform expansions. The company maintains its long-term financial targets, which include an organic revenue compound annual growth rate of 7% to 10% and an average adjusted EBITDA margin of 23% to 25%. These results underscore a period of stable growth and strategic realignment within the global gaming sector.