MAG Interactive generated 69 MSEK in net sales in Q1 with an EBITDA margin of 25%. Net sales decreased 10% compared to the same period last year and increased 4% compared to Q4.

Summary of the period September 2024 – November 2024:

• Adjusted EBITDA for the period was 17,194 KSEK (19,116 KSEK), a decrease of 1,923 KSEK
• The Group's net sales for the period was 68,995 KSEK (76,745 KSEK), a decrease of 10%
• The Group's game contribution for the period was 45,304 KSEK (54,864 KSEK), a decrease of 17%
• Average revenue per daily active user (ARPDAU) for the period was 6.9 US cents (6.8 US cents), an increase of 1%
• Earnings per share during the quarter was 0.10 SEK/share (0.17 SEK/share)
• Adjusted earnings per share during the quarter was 0.10 SEK/share (0.12 SEK/share)
• The cost of user acquisition for the quarter was 13,199 KSEK (11,192 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.0 million and 2.6 million respectively during the quarter, a decrease of 8% and 11%

Comment from the CEO in summary

“Revenues grew by four percent between Q4 and Q1, reaching 69 MSEK. EBITDA margin in Q1 was 25%. We are happy to see growing user acquisition (UA) investments in the quarter (up by 5 MSEK from Q4 to Q1) as a result of increased competitiveness for our games in the market.

“We attribute the sequential increase in UA and revenues in Q1 to the great work done in our live games, where there has been a high frequency of new game modes and content.

“Year over year, we are still lagging behind due to differences in UA levels now compared to previous historical highs. Revenues in Q1 were 10% lower compared to the year before, driven by a combination of an 8% decline in daily active users (DAU) and negative currency exchange rate differences. The average revenue per daily active user (ARPDAU), measured in USD, was slightly higher than a year ago.

“Crozzle has now been in soft launch for 12 months. The game has improved significantly during this period, and we are now at a place where we can run UA at low volumes profitably. The game has passed one-hundred thousand downloads and already generates daily revenues at a similar level to one of our smaller games. The focus, of course, is to continue to push up the lifetime value (LTV) of the game to become a truly scalable title in our portfolio. We do not consider the game as globally launched until we have reached such a point.

“In addition to Crozzle, we have another game in market testing. This game is built to use the same tile matching mechanic we have running as a side event in Wordzee, but as a stand alone game. Tile matching is a sub-segment within the Puzzle category where there is room for innovation as well as plenty of opportunity for new games to enter.

“Thanks to investments in our modular platform we are getting to a place where we will be able to get games to market faster. We will move quicker while maintaining high quality, as a significantly smaller amount of new software needs to be developed per game. 

“We are committed to increased speed in getting new games out to testing in the market thanks to our new platform. In 2025 and 2026 we are confident that we will have a significantly higher pace of getting new games out to market, which will in turn increase the likelihood of new games getting all the way to global launch and support revenue growth of the business. We have a strong belief in the future growth this will unlock. Thank you for following our exciting journey,” says Daniel Hasselberg, CEO at MAG Interactive.

Presentation & Report
On January 22, 2025 at 10:00 CET, CEO Daniel Hasselberg and CFO Magnus Wiklander will present the Interim Report live on Twitch. The presentation will be held in English. Link to the Twitch feed: www.twitch.com/maginteractive. Daniel Hasselberg will also take questions on the social media platform X, formally known as Twitter, during the course of the day, write to @d_hasselberg or @maginteractive. For more information and to read the full report please visit https://www.maginteractive.com/investors/investor-relations/reports/.

This disclosure contains information that MAG Interactive is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-01-2025 08:00 CET.

For additional information, please contact:
Daniel Hasselberg / CEO / +46 (0)8 644 35 40 / daniel@maginteractive.se
Magnus Wiklander / CFO / +46 (0)8 644 35 40 / magnus.wiklander@maginteractive.se

About MAG Interactive 
MAG Interactive is a leading mobile game developer focused on casual social games. With passionate, creative teams and a data-driven business model, MAG delivers world-class gaming experiences to millions of players worldwide. MAG specializes in word games and trivia, with a portfolio of titles including QuizDuel, Wordzee, Word Bubbles, Word Mansion, Tile Mansion, Ruzzle, Word Domination and WordBrain, that have been downloaded over 350 million times. MAG has studios in Stockholm and Brighton and was listed in 2017 on the Nasdaq First North Premier Growth Market with the ticker MAGI. FNCA Sweden AB is appointed Certified Advisor to MAG Interactive. For more information visit www.maginteractive.com