Report

Conference Call: Q2 2025

12 pages929 words

Summary

Modern Times Group’s Q2 2025 performance reflects significant expansion, primarily driven by the strategic consolidation of Plarium. The company reported a 103% year-over-year increase in reported revenue, reaching 2,911 million SEK, with constant currency growth reaching 117%. This surge is complemented by 9% organic growth, fueled by strong performance across key franchises, including Word Games, Heroes of History, Warhammer 40,000: Tacticus, and F1 Clash. Profitability remains robust, with adjusted EBITDA rising 50% year-over-year to 640 million SEK, maintaining a healthy 22% margin despite ongoing investments in marketing and growth initiatives. The integration of Plarium has notably impacted user metrics, contributing to an increase in Daily Active Users (DAU) and supporting continued growth in Average Revenue Per Daily Active User (ARPDAU). The company’s financial position remains stable, supported by strong underlying cash flows and a disciplined approach to capital expenditure and leverage. The scope of these results covers the global gaming operations of Modern Times Group, with specific data points reflecting the impact of the Plarium acquisition as of February 2025. Looking ahead, the company maintains its full-year 2025 outlook, projecting organic sales growth of 3% to 7% and an adjusted EBITDA margin between 21% and 24%. Management intends to sustain this momentum by balancing disciplined marketing investments with the continued scaling of both established and new game titles.

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