FinancialModern Times Group
Conference Call Q1 2025
1 May 202512 pages~5 min full read
MTG reported Q1 2025 net sales of SEK 2,557 million, a 79% year-over-year increase driven primarily by the acquisition of Plarium and 6% organic growth.
The integration of Plarium shifted the revenue mix, with Strategy and Simulation now the largest segment at SEK 1,066 million and IAP revenue rising to 76% of the total.
Adjusted EBITDA reached SEK 616 million with a 24% margin, supported by a free cash flow of SEK 143 million despite increased marketing spend for new titles.
Daily Active Users (DAU) grew to 9 million, though ARPDAU experienced a slight decline to SEK 3.1.
The company maintains a net debt of SEK 5,064 million, resulting in a financial leverage ratio of 1.66x.
Management projects full-year 2025 organic sales growth between 3% and 7% with an adjusted EBITDA margin target of 21% to 24%.
Modern Times Group (MTG) reports significant financial expansion for the first quarter of 2025, primarily driven by the strategic consolidation of Plarium. Net sales reached SEK 2,557 million, representing a 79% increase in constant currencies year-over-year. While much of this growth is attributed to the acquisition, the company also maintained a 6% organic growth rate. The long-term performance remains robust, with a 4.75-year annualized compound annual growth rate (CAGR) of 18% for reported revenue and 28% for adjusted EBITDA.
The integration of Plarium has fundamentally shifted the revenue mix and user base. Strategy and Simulation now represent the largest franchise segment, contributing SEK 1,066 million in the quarter, followed by Word Games and Tower Defense. In-app purchases (IAP) have increased to 76% of total revenue, up from 61% in the prior year, while advertising revenue (IAA) has decreased proportionally. Daily Active Users (DAU) rose to 9 million, influenced by both the Plarium acquisition and the localized expansion of Word Games, though Average Revenue Per Daily Active User (ARPDAU) saw a slight decline to SEK 3.1.
Financial health remains stable with a reported adjusted EBITDA of SEK 616 million, yielding a 24% margin. This was achieved despite scaled marketing investments for new titles. The group reported a free cash flow of SEK 143 million for the quarter and maintains a net debt position of SEK 5,064 million, resulting in a financial leverage ratio of 1.66x. Looking ahead to the full year 2025, the outlook anticipates organic sales growth between 3% and 7% and a total reported adjusted EBITDA margin between 21% and 24%. Management intends to focus on the disciplined scaling of new titles and geographical expansion to sustain this momentum.
