Financial

Conference Call Q2 2025

1 August 202512 pages999 words

Summary

Modern Times Group MTG AB reported significant financial expansion for the second quarter of 2025, primarily driven by the strategic consolidation of Plarium and robust organic performance. Net sales increased by 117% in constant currencies year-over-year, reaching 2,911 SEKm. While reported sales growth was slightly tempered by a 14% negative foreign exchange impact, the company achieved 9% organic growth. This organic momentum was fueled by key titles including Warhammer 40,000: Tacticus, F1 Clash, Heroes of History, and the Word Games portfolio. Profitability remained strong with an adjusted EBITDA of 640 SEKm, representing a 50% increase year-over-year. The company maintained a healthy adjusted EBITDA margin of 22%, even as it continued to invest in growth initiatives and marketing. Operational cash flow for the quarter stood at 325 SEKm, contributing to a last-twelve-months free cash flow of 1,045 SEKm. Despite a significant earnout payment of 1,074 SEKm during the period, the group maintained a stable financial leverage ratio of 1.63x net debt to adjusted EBITDA. User metrics showed positive trends, with Daily Active Users (DAU) rising to 10 million, influenced by the Plarium acquisition and the geographic expansion of Word Games. Average Revenue Per Daily Active User (ARPDAU) also saw growth, reaching 4.5 SEK. Looking ahead, the group maintained its full-year 2025 outlook, projecting organic sales growth between 3% and 7% and an adjusted EBITDA margin between 21% and 24%. The strategy remains focused on disciplined marketing investments to drive organic growth across both new and established gaming franchises.

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