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Modern Times Group Q4 2024 Earnings Results

Key insights

6 takeaways

01
Modern Times Group is acquiring Plarium, a strategic move projected to double the company's total revenue and integrate advanced monetization infrastructure.See it on page 3
02
Q4 2024 performance showed 9% organic revenue growth and an adjusted EBITDA margin of 27%, with adjusted EBITDA rising 4% year-over-year to SEK 455 million.See it on page 1
03
The company reported a net loss of SEK 242 million for the quarter, driven by M&A-related expenses, earnout revaluations, and the deconsolidation of Kongregate.See it on page 10
04
Flagship titles Forge of Empires and Warhammer 40,000: Tacticus drove a 3% sequential increase in daily active users through consistent live-ops and content updates.See it on page 5
05
Operational scaling was supported by a 40% revenue reinvestment rate into user acquisition to drive long-term engagement.See it on page 5
06
The group maintains a strong liquidity position with SEK 3,543 million in cash and cash equivalents at the end of the 2024 fiscal year.See it on page 15

Summary

Modern Times Group concluded the 2024 fiscal year with strong operational momentum, characterized by 9% organic revenue growth and an adjusted EBITDA margin of 27% in the fourth quarter. This performance was underpinned by robust live-ops and content updates across flagship titles such as Forge of Empires and Warhammer 40,000: Tacticus, which contributed to a 3% sequential increase in daily active users. The company successfully scaled its operations by reinvesting 40% of its revenue into user acquisition, capitalizing on favorable market conditions to drive long-term engagement across its gaming portfolio.

Financial results for the quarter reflect a complex balance between operational scaling and significant non-recurring costs. While adjusted EBITDA rose 4% year-over-year to SEK 455 million, consolidated EBIT fell to SEK 170 million, pressured by elevated marketing expenditures and earnout revaluations. Furthermore, the company recorded a net loss of SEK 242 million, largely attributed to M&A-related expenses and financial adjustments, including the deconsolidation of Kongregate following its merger into Monumental. Despite these bottom-line impacts, the group maintains a solid liquidity position, ending the period with SEK 3,543 million in cash and cash equivalents.

The strategic trajectory of the group is defined by the transformative acquisition of Plarium, a move projected to double total group revenues and provide access to sophisticated monetization infrastructure. This acquisition serves as the cornerstone of the company’s growth strategy, aiming to integrate industry-leading tools to enhance future performance. With no significant post-period events reported, the company remains focused on its upcoming governance schedule, including the 2025 Annual General Meeting, as it transitions into the new fiscal year with a clear emphasis on scaling its expanded gaming ecosystem.