Annual and Sustainability Report 2025

Modern Times Group (MTG) concluded the 2025 fiscal year with a transformative shift in its operational structure and a significant expansion of its mobile gaming portfolio. The company’s primary thesis centers on leveraging a new "District-based" organizational model—dividing studios into Midcore and Casual segments—to centralize commercial platforms, data analytics, and AI-driven live-ops. This strategy aims to preserve individual studio autonomy while achieving economies of scale, ultimately targeting 3–7% revenue growth and adjusted EBITDA margins exceeding 24% in the medium term.

Financial performance in 2025 was defined by the USD 659 million acquisition of Plarium, which served as the primary catalyst for a 92% year-on-year increase in net sales to SEK 11,579 million. Despite this top-line growth, the company reported a net loss of SEK 62 million, an improvement over the previous year’s SEK 210 million loss. The balance sheet reflects a transition to a net debt position of SEK 3,916 million, resulting from the debt-financed acquisition and ongoing investments in intangible assets. The Board of Directors has opted to propose no dividend for the year, prioritizing capital allocation toward strategic growth and debt management.

MTG’s sustainability and governance framework has evolved to meet European Sustainability Reporting Standards (ESRS), with a focus on climate action, data privacy, and human capital. The company has adopted science-based targets to reduce greenhouse gas emissions by 2031 and has integrated ESG performance metrics into executive remuneration, including a 5% weighting for data privacy compliance. While the company faces risks related to third-party platform dependency and the concentration of revenue in specific titles, it maintains a robust internal control environment overseen by a dedicated Governance, Risk, and Compliance function. Moving into 2026, the company remains focused on organic growth, expanding direct-to-consumer monetization, and exploring a potential public listing for its PlaySimple studio.