Kvartalsrapport Q1 2023

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===== SIDA 1 =====

Q1 2023 Modern Times Group MTG AB  1 
Q1 operational performance encouraging as we look forward During the first quarter MTG saw strong continued underlying growth from PlaySimple and Ninja Kiwi, with stabilization and early signs of recovery from InnoGames, who despite a significant YoY decline saw encouraging improvements in the second half of the quarter. Revenues were down 4% year on year in reported rates  (-11% in constant FX) due to elevated comparison numbers in Q1 2022. Total marketing spend amounted to 41% of revenues in Q1, reflecting an improving marketing landscape in the second half of Q1. The group reported adjusted EBITDA of SEK 263 million in the period, with a corresponding margin of 20%.  Financial highlights Q1, continuing operations ■ Net sales declined by 4% year on year to SEK 1,306 (1,357) million and were down by 11% year on year in constant currencies ■ User acquisition spend of SEK 537 (576) million corresponding to 41% of revenues (SEK 559 million in Q4 2022) ■ Adjusted EBITDA of SEK 263 (342) million with an adjusted EBITDA margin of 20 (25)% ■ Reported EBITDA of SEK 245 (239) million and EBIT of SEK 121 (85) million, including EBITDA adjustments of SEK 13 million pertaining to non-recurring bonus structures and SEK 5 million pertaining to M&A transaction costs  ■ Net financial items amounted to SEK -61 (-122) million   ■ Total net income of SEK 24 (-315) million and total basic earnings per share of SEK 0.20 (-2.62) ■ Cash flow from operations in the quarter of SEK 262 (79) million including a realized FX gain amounting to SEK 66 million and cash conversion of 51% in Q1 and 60% for the last 12 months (April 2022 to March 2023) ■ Cash and cash equivalents at the end of the period amounted to SEK 4,019 (894) million ■ Outlook of full year sales to be within the range of -3% to +2% when adjusting for currency effects, and adjusted EBITDA margin for the year to be within MTG’s long-term outlook of 23-25% Financial overview (SEKm) Q1 2023 Q1 2022 FY  2022 Continuing operations     Net sales 1,306 1,357 5,537      EBIT 121 85 558 EBITDA 245 239 1,229 Adjusted EBITDA 263 342 1,373      Net income 24 -111 252 Basic earnings per share (SEK) 0.20 -0.77 2.70 Diluted earnings per share (SEK) 0.20 -0.77 2.69      Discontinued operations     Net income - -204 6,223      Total operations     Net income 24 -315 6,475 Basic earnings per share (SEK) 0.20 -2.62 56.26 Diluted earnings per share (SEK) 0.20 -2.62 56.06      Growth, continuing operations     Sales growth -4% 77% 41% Changes in FX rates 7% 6% 9% Sales growth at constant FX1 -11% 71% 32% of which organic growth -11% -9% -4% 1) Pro forma growth in Q1 2022 was 10 % and 5% in FY 2022

===== SIDA 2 =====

Q1 2023 Modern Times Group MTG AB  2 
President & CEO’s commentsA quarter with two stories We are happy to see that our studios PlaySimple and Ninja Kiwi continued their strong performance into the first quarter of 2023. InnoGames experienced a significant year on year decline in revenues, as they are coming out of challenging post-covid comparison levels from last year and had a difficult start to the year. We did however see a gradual improvement in their performance during the quarter.  InnoGame’s performance during the first half of Q1 was characterized by the same low visibility they experienced in Q4, driven by ongoing challenges from Apple’s IDFA changes, the post-pandemic normalization of our markets and overall macroeconomic uncertainty. In the second half of the quarter we saw encouraging improvements in the performance of our events, as well as in the mid-core market more broadly, leading to both better monetization of existing users and a better marketing landscape.  When we look at our operations as a whole, our combined performance and market dynamics make us increasingly confident in our ability to return to growth towards the second part of the year. The outlook we are presenting today reflects this confidence. Our revenues were down 4% in reported rates and 11% year on year in constant currencies in Q1 to SEK 1,306 million. The decline reflected tough comparison numbers in Q1 last year, driven by two major factors. Firstly, InnoGames’ revenues declined year on year, due to the combined impact from continued softer sales in the first half of the quarter, and the fact that their revenues were still elevated coming out of the pandemic in Q1 last year. Secondly, PlaySimple booked the first part of its platform incentive bonus in Q1 last year as revenue, which affected the year-on-year decline in revenues by five percentage points.  Hutch’ revenues were down slightly year on year in the seasonally weaker first quarter. The studio is getting ready to launch the season reset of F1 Clash and continues to work on its exciting pipeline of new games. Kongregate’s sales were also down year on year, primarily due to lower revenues from their traditional portfolio. Improving marketing environment enables profitable scaling of UA We delivered adjusted EBITDA of SEK 263 million in the quarter, down from SEK 342 million in the first quarter of last year. The group’s reported margin was 20% in the quarter, compared to 25% in Q1 last year. Our underlying 
margin would have been up slightly year on year on a like-for-like basis if we were to exclude the previously mentioned platform incentives. Our margin performance reflected higher underlying profitability in InnoGames and PlaySimple, offset by ongoing investments in Web 3.0 by Kongregate and investments in new games by Hutch.  Our studios invested a combined SEK 537 million in user acquisition during the quarter, corresponding to 41% of total revenues. Our user acquisition spending was driven by successful scaling of the new games in PlaySimple, even though overall levels were lower than in Q1 last year, when InnoGames were still seeing elevated user acquisition spend levels at the tail end of the pandemic and were scaling the new games, Sunrise Village and Rise of Cultures, more significantly than what we are doing now.   The group also delivered a cash conversion of 51% in Q1, and 60% for the last twelve-month period with the 12-month number being elevated by the previously mentioned platform incentive fees. Healthy underlying operations and strong pipeline of content for the coming quarters  Our studios are focused on growing their games through live-ops, content updates and a pipeline of upcoming new titles.  PlaySimple continued its strong performance in Q1 and their games have ensured that the Word Games franchise has been our largest one for five quarters in a row, reporting strong growth every quarter. The studio continued to scale key games successfully in Q1 and PlaySimple’s player base grew both year on year and sequentially as a result. We also saw impressive growth and very positive performance indicators from the new titles Crossword Explorer and Word Search in the quarter.  Ninja Kiwi’s flagship title Bloons TD6 continued to perform well, and the studio is ready to launch the game on Netflix later this year. The studio also had a major update and a successful Steam Sale for Bloons TD6 just after the quarter ended.  The first quarter is normally not as strong for Hutch, as they need the Formula 1 season to begin, in order to deliver the annual reset of F1 Clash. However, the kick-off of Formula 1 in March did bring a significant number of previous players back to the game. Hutch is also working on the upcoming launches of two new games later this year and early testing is showing positive performance indicators. InnoGames continued to deliver updates and content to Forge of Empires and key in-game events in February and March showed good traction for the game. In early April the studio announced an organizational realignment to boost the company’s future viability and competitiveness. This will see the company optimize its organization to accelerate the

===== SIDA 3 =====

Q1 2023 Modern Times Group MTG AB  3 
development of new games, while refocusing the teams working on current live titles. Unfortunately, the changes also meant that the studio decided to make 75 roles redundant.   We have also started to build up a central team in PlaySimple that will drive our group-wide ad tech and cross promotion initiatives, based on some of the strong foundation PlaySimple has built over the years. This will enable MTG to improve our monetization from advertising in games and improve our marketing efficiency through cross promotion.  Strong balance sheet enabling M&A and continued distributions  We continue to have a strong balance sheet thanks to the successful divestment of ESL Gaming in April 2022. M&A remains one of the key elements in our growth strategy. We continue to believe that future additions to our gaming village will enable us to increase our relevant scale and build a synergetic gaming company. Our ambition is to utilize our balance sheet for future acquisitions if we see the right opportunities and the right pricing environment.   We believe that M&A can, and will, go hand in hand with shareholder value creation, as evidenced by our ongoing share repurchase program, which runs until the 2023 AGM. MTG’s Board of Directors has also proposed that the AGM authorizes the Board to resolve to repurchase additional shares in 2023 if they find it appropriate.   Looking forward We are happy with the strong underlying performance and momentum of our Word Games and Tower Defense franchises. Our Racing franchise is also set to continue growing thanks to live-ops, new content and new upcoming games. We are also happy to see the performance of our Strategy & Simulation franchise begin to improve. The game teams have a rich pipeline of content planned for our players this year. We’re also excited by the strong continued performance of our new word games, which demonstrate our ability to successfully scale new IP.  The second half of the quarter provided us with encouraging signs of positive momentum, especially in Forge of Empires which executed successfully on several events. When we look at the combined trajectory of our business this year, we expect our positive momentum to continue in each of the coming quarters of this year, bringing us back to organic growth in the second half of 2023.  We have a lot of work to do, especially on our new games in the Strategy & Simulation franchise, but we feel confident that InnoGames has a clear roadmap for how to improve their new games and grow existing ones.  
And last, but not least, I’m excited to continue growing the Flow Platform and to evolve the ad tech and cross promotion pillars to benefit all our portfolio companies.  Thank you, and we look forward to sharing more updates with you going forward. Maria Redin  Group President & CEO, Modern Times Group MTG AB  Outlook for 2023 MTG expects the overall market to decline slightly for the full year 2023 but for overall market dynamics to become more favourable towards the second half and end of the year. We also currently expect the positive momentum seen at the end of the first quarter to continue into the second quarter and beyond.  Taking these market considerations into account, we expect our full year sales to be within the range of -3% to +2% when adjusted for currency effects. We also expect our adjusted EBITDA margin for the year to be within our long-term outlook of 23-25%.

===== SIDA 4 =====

Q1 2023 Modern Times Group MTG AB  4 
Significant events February 20 – Lasse Pilgaard resigned from his position as the Group’s CFO to explore opportunities closer to his family and home in Copenhagen, Denmark. Lasse will continue to serve as the group’s CFO during his notice period, and MTG has now started the recruitment process for his replacement.  March 28 – MTG increased its ownership in PlaySimple to approximately 93%, with the remaining shares held by PlaySimple Founders. The group has consolidated 100% of PlaySimple since 1 August 2021 and has a contractual path to full ownership in place April 13 – MTG’s German gaming studio, InnoGames, announced a strategic organizational realignment of its business.  .  
Further information about the group’s significant events can be found on MTG’s homepage on www.mtg.com.

===== SIDA 5 =====

Q1 2023 Modern Times Group MTG AB  5 
Group performance Net sales Group net sales were down 4% year on year in the quarter to SEK 1,306 (1,357) million, despite a 7% positive contribution from currency effects. The decline was driven by the higher-than-normal comparison figures in Q1 2022, due to the impact from the platform incentives in PlaySimple, combined with the ongoing challenges facing the mid-core gaming market segment which mainly impacted InnoGames’ revenues. The group’s sales declined by 11% year on year in constant currencies when including the impact from the platform incentives and by 6% excluding this effect.  PlaySimple’s underlying sales were up year on year. The studio continued to scale key games in Q1 thanks to a highly ambitious content pipeline, focused on ad revenue optimization and retention improvements in key titles like Word Trip and Crossword Jam. PlaySimple also continued to successfully scale its new games Crossword Explorer and Word Search. The new titles reported double-digit revenue growth on a sequential basis and represented 9% of Word Games Franchise revenues in March.   Ninja Kiwi’s sales grew year on year, primarily as a result of the continued strength of Bloons TD6, both standalone and on Apple Arcade. The studio introduced the latest major update to Bloons TD6 in the beginning of April, offering players a new tower, maps and features. The game also had a very successful Steam Sale in April, driven by the new content and a higher base price following the price increase in Q3 last year. Hutch experienced a slight year-on-year decline in sales, primarily driven by lower revenues from catalogue games which are no longer being actively maintained. The first quarter is normally a seasonally weaker period, as the studio is dependent on the start of the Formula 1 racing season each year for the annual reset of F1 Clash. Top Drives revenues were slightly up year-on-year, as a result of the improvements the studio put in place during 2022.  InnoGames reported a double-digit decline in revenues year on year, despite an active content pipeline that included improved onboarding tutorials and a battle pass system for Forge of Empires as well as new seasons, in-game content, and a new way to deliver video ads in Rise of Cultures. Forge of Empire also had a successful reactivation of old players and a well-performing St Patrick’s day event and traction for Forge of Empires improved towards the end of the period. This marked an improvement from the beginning of the quarter and the challenging environment coming out of a tough Q4.  (SEKm) Q1 2023 Q1 2022 FY  2022 Net sales 1,306 1,357 5,537 Sales growth -4% 77% 41% Changes in FX rates 7% 6% 9% Sales growth at constant FX1 -11% 71% 32% of which organic growth -11% -9% -4% 1) Pro forma growth was 10 % and 5% in FY 2022     Adjusted EBITDA, EBITDA and EBIT MTG reported an adjusted EBITDA of SEK 263 (342) million in the quarter, and the group’s adjusted EBITDA margin declined to 20% (25) in the first quarter. Adjusted EBITDA was up 1% year on year excluding the impact of PlaySimple’s platform incentives and applying the same definition of adjusted EBITDA for Q1 2022 as for Q1 2023. The underlying margin improvement primarily reflected the fact that lower marketing spend in InnoGames offset the company’s lower sales and the healthy margin performance in PlaySimple and Ninja Kiwi*, offset somewhat by investments in Web 3.0 by Kongregate and new game investments by Hutch The group’s adjustments to reported EBITDA amounted to SEK 18 (103) million in the quarter. This included an adjustment for non-recurring bonus structures of SEK 13 (71) million and an adjustment for M&A transaction costs of SEK 5 (26) million. The adjustment for impairment of own capitalized costs amounted to SEK 0 (7) million in the quarter.  The group reported EBITDA of SEK 245 (239) million and a margin of 19% (18) in the quarter, which clearly demonstrates the overall underlying health of our operations and strength of our portfolio.   * MTG modified its definition for adjusted EBITDA in the second quarter of 2022 and now only adjusts EBITDA for non-recurring bonus structures, M&A transaction costs, items affecting comparability and the impairment of own capitalized costs. The new definition of adjusted EBITDA implemented during the second quarter of 2022 does not include the group’s various operational incentive programs as adjustments. These items had an impact of SEK 30 million on the group’s reported EBITDA in the first quarter of 2023.

===== SIDA 6 =====

Q1 2023 Modern Times Group MTG AB  6 
(SEKm) Q1 2023 Q1 2022 FY  2022 EBIT 121 85 558 Amortization 118 145 637 Depreciation 6 9 34 EBITDA 245 239 1,229 Impairment own capitalized costs - 7 26 Non-recurring bonus structures¹ 13 71 99 M&A transaction costs 5 26 19 Adjusted EBITDA 263 342 1,373 Adjusted EBITDA margin 20% 25% 25% 1) Long term incentive programs are included in figures in Q1 2022 Depreciation and amortization amounted to SEK 123 (153) million and included the amortization of purchase price allocations (PPA) of SEK 88 (100) million. Excluding PPA, depreciation and amortization amounted to SEK 35 (53) million.  Consolidated EBIT was SEK 121 (85) million in the quarter, which corresponded to an EBIT margin of 9% (6). Operating costs before depreciation and amortization increased by 5% year on year to SEK 1,061 (1,119) million. Key performance indicators   Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 DAU, million 6.4 6.5 6.4 6.7 7.0 MAU, million 29.4 31.5 31.4 33.3 35.2 ARPDAU, SEK 2.3 2.3 2.3 2.1 2.1        Revenue generated by the top 3 games, % 46% 44% 40% 42% 44%        Revenue generated by platform, %       Mobile 77% 76% 73% 73% 70% Browser 20% 19% 18% 20% 21% Other 3% 5% 8% 7% 9%        Revenue generated by territory, %       Europe 32% 33% 31% 32% 34% North America 63% 64% 61% 63% 59% Asia Pacific 4% 3% 7% 4% 6% Rest of World 1% 0% 1% 1% 1%        UA spend, SEKm 537 559 499 500 576  The group’s total daily active users (DAU) were down 8% and monthly active users (MAU) were down by 17% year on year. The decline primarily reflected the challenge to attract and retain players in our mid-core games, offset somewhat by strong positive momentum in our casual player base thanks to the strong performance of PlaySimple’s gaming portfolio. The group’s total DAU decreased by 1% and MAU decreased by 7% on a sequential basis. Average Revenue per Daily Active User (ARPDAU) was up by 8% year on year and reflected the higher proportion of veteran players in our games due to the ongoing challenge to attract new players in the mid-core segment. This was partly offset by a higher proportion of casual players in the group’s overall player mix. ARPDAU was down 3% on a sequential basis, which reflected normal seasonal effects between the fourth and first quarters. Forge of Empires, Word Trip, and Word Jam continued to be the group’s top three performing titles. The top three games represented 46% of the group’s revenues in the first quarter, compared to 44% in the fourth quarter.    The group’s proportion of mobile revenues represented 77% (70) of total revenues in the first quarter and increased on a sequential basis.

===== SIDA 7 =====

Q1 2023 Modern Times Group MTG AB  7 
Reported sales by franchise (SEKm) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Strategy & Simulation 372 404 425 442 439 Word Games 517 502 525 490 499 Tower Defense 127 148 114 130 118 Racing 138 178 196 168 140 Other smaller franchises 151 157 152 148 162 Total sales 1,306 1,388 1,412 1,379 1,357 
The Word Games franchise had a strong quarter and remains the main driver of our overall growth. Several key games continued to perform well in Q1 due to key content launches and updates. Revenues for the franchise increased 6% sequentially at constant currencies but were down 7% year on year. Underlying sales were also up year on year when excluding the platform incentive bonus in 2022. The sequential growth was mainly driven by an ambitious content pipeline focused on ad revenue optimization and retention improvements in key titles like Daily Themed Crossword, Word Trip and Crossword Jam. The franchise has now been MTG’s largest for five quarters in a row. The new titles Crossword Explorer and Word Search grew by double digits sequentially, and in March 9% of the franchise’s revenue came from these two games. The two new titles continue to be a priority for PlaySimple, and the studio allocated approximately 20% of total franchise user acquisition spend to these titles in March. Revenues for the Strategy & Simulation franchise declined by 9% sequentially and 21% year on year at constant currencies. The year-on-year decline in franchise revenues was mainly driven by lower revenues from Forge of Empires and Elvenar, which faced a tough market environment in the beginning of the year. The games’ performance improved sequentially throughout the quarter, and Forge of Empires had successful events in February and March, entering April with positive momentum. The content pipeline for Forge of Empires also included improved onboarding tutorials and a battle pass system.  Our new games Rise of Cultures and Sunrise Village both delivered low levels of growth in the quarter. The new operating model in InnoGames creates a new structure to address this and accelerate the growth of both games. For Sunrise Village we have a pipeline of new content that is expected to deliver improvements and content throughout the year. For Rise of Cultures we are working on a larger revamp of the game late this year, which is expected to take the game to the next level of scaling. Revenues for the Tower Defense franchise grew by 5% year on year but were down by 14% sequentially at constant currencies. The sequential decline mainly reflected the boost in revenues from a successful Steam Sale in Q4 last year.  
The highly anticipated update 36 for Bloons TD6 was launched on April 4. The update included a brand-new tower and map as well as a new Quest system and was immediately followed by a well-performing Steam Sale. The team continues to work on improving the features and performance the PVP title Bloons TD Battles 2 to ensure we can scale marketing going forward. Revenues for the Racing franchise declined by 3% year on year at constant currencies and by 23% sequentially. The sequential performance reflected the normal seasonal pattern in F1 Clash, as it is dependent on the timing of the launch of the new Formula 1 racing season each year. Nevertheless, the game experienced a small boost to its performance when the Formula 1 season started in early March. The game also received several updates throughout the quarter, with new tracks, languages, and improvements.  Top Drives had a strong quarter and became Game of the Day on iOS in the UK. The game’s first ever TV ad went live in February and its latest update was also featured by Apple. Hutch also continues to push towards the launch of two new racing titles later this year. Kongregate’s revenues declined by double-digits year-on-year in the quarter. The studio continued to invest in the development of Web 3.0 gaming and its games portal and published five new games from external developers on Kongregate.com. The Bitverse games reported an increase in engagement with NFTs every week in the quarter. Despite this, Kongregate’s portfolio experienced a decline in revenues year on year. 
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Q1'22Q2'22Q3'22Q4'22Q1'23
Salesby franchise in constant currency, SEKm
Strategy & SimulationWord GamesTower DefenseRacingOther smaller franchises

===== SIDA 8 =====

Q1 2023 Modern Times Group MTG AB  8 
Net financials and net income Net financial items amounted to SEK -61 (-122) million in the quarter, of which net interest amounted to SEK 43  (-12) million and other financial items to SEK -104 (-110) million. Other financial items consist of unrealized and realized exchange rate differences (SEK -17 million), gain and loss from financial assets and liabilities (SEK -19 million) and discounted interest on earnouts (SEK -69 million).  Unrealized and realized exchange rate differences amounted to net SEK -17 million, of which realized exchange rate differences amounted to SEK 66 million and unrealized exchange rate differences amounted to SEK -82 million. Gains and losses from financial assets and liabilities amounted to SEK -19 million, of which:  • SEK -102 million related to the revaluation of the earnout liability • SEK 86 million related to the valuation of a financial liability related to the acquisition of the remaining outstanding, 7,2%, shares of PlaySimple, (since the liability follows the value of a fixed number of shares) • SEK -3 million related to other changes.  The group’s tax amounted to SEK -36 (-75) million.  Net income for the quarter therefore amounted to SEK 24 (-111) million. 
Discontinued operations MTG divested ESL Gaming to Savvy Gaming Group in April 2022. As a result, the group’s esports vertical and operations have been reclassified as discontinued operations since Q1 2022 and in this report. Further information can be found in the 2022 Annual Report, as well as in the 2022 quarterly reports.   Venture capital fund investments To date, the MTG VC fund has invested a total of SEK 319 (USD 34) million in a total of 24 companies. VC investments complement MTG’s majority stake investment in Kongregate, InnoGames, Hutch, Ninja Kiwi and PlaySimple.  The portfolio assets range from start-up game developers across several game genres and game creation platforms in the US and Europe to pure esports-focused companies. VC investments related to esports remained in MTG after the divestment of ESL Gaming.

===== SIDA 9 =====

Q1 2023 Modern Times Group MTG AB  9 
Financial reviewCash flow Cash flow from operations before changes in working capital and taxes paid amounted to SEK 386 (273) million. This included a realized FX gain amounting to SEK 66 million in the quarter. Depreciation and amortization amounted to SEK -123 (-153) million, of which SEK -88 (-100) million pertained to amortization of PPA. Paid taxes amounted to SEK -78 (-67) million.    The group reported a SEK -46 (-127) million change in working capital in the quarter.      Net cash flow from operations therefore amounted to SEK 262 (79) million. Investing activities Total cash flow relating to investing activities amounted to SEK -687 (-68) million in the quarter mainly consisted of an earnout payment of SEK -463 million and SEK -155 million related to the acquisition of PlaySimple. Capital expenditure on tangible and intangible assets, mainly consisting of capitalized development costs for games and platforms that have not yet been released, amounted to SEK -62 (-63) million in the quarter.  Financing activities Total cash flow relating to financing activities amounted to SEK -195 (31) million, of which SEK -186 million related to the group’s repurchase of shares. The net change in cash and cash equivalents amounted to SEK -619 (85) million.  The group had cash and cash equivalents of SEK 4,019 (894) million at the end of the period.  
Net debt Net debt refers to the sum of interest-bearing liabilities less cash and cash equivalents. Interest-bearing liabilities such as additional purchase considerations or lease liabilities are not included. Net debt as of March 31, 2023, amounted to SEK -4,019  (1,106) million. The net debt calculation includes external financing of SEK 0 (2,000) million less SEK 4,019 (894) million in cash and cash equivalents.

===== SIDA 10 =====

Q1 2023 Modern Times Group MTG AB  10 
Parent Company Modern Times Group MTG AB is the group's parent company and is responsible for group-wide management, administration, and financing. (SEKm) Q1 2023 Q1 2022 FY 2022 Net sales 15 12 40 Net interest and other financial items -51 -8 7,705 Income before tax and appropriations -78 -49 7,527  Net interest and other financial items for the quarter amounted to SEK -51 (-8) million. Net interest amounted to SEK -21 (-9) million. Unrealized and realized exchange differences amounted to SEK -28 (2) million and other financial items to SEK -2    (-1) million. The parent company had cash and cash equivalents of SEK 2,816 (157) million at the end of the period. The increase is related to the divestment of ESL Gaming in the previous year. The total number of shares outstanding at the end of the period was 121,374,752 (110,385,832), excluding the 6,336,845 Class B shares and the 6,324,343 Class C shares held by MTG as treasury shares. No new shares were issued during the quarter.

===== SIDA 11 =====

Q1 2023 Modern Times Group MTG AB  11 
Other information Accounting policies This interim report has been prepared according to ‘IAS 34 Interim Financial Reporting’ and the Swedish Annual Accounts Act’. The interim report for the parent company has been prepared according to the Swedish Annual Accounts Act – Chapter 9 ‘Interim Report’. The group's consolidated accounts and the parent company’s accounts have been prepared according to the same accounting policies and calculation methods as were applied in the preparation of the 2022 Annual Report.  Disclosures in accordance with IAS.34 16A appear in the financial statements and the accompanying notes as well as in other parts of the interim report.  Related party transactions No transactions between MTG and related parties that have materially affected the Group’s position and earnings took place during the period. 
Risks and uncertainties Significant risks and uncertainties exist for the group and the parent company. These factors include the prevailing economic and business environments; commercial risks related to expansion into new territories; other political and legislative risks related to changes in rules and regulations in the various territories in which the group operates; exposure to foreign exchange rate movements, and the US dollar and euro-linked currencies in particular; the emergence of new technologies and competitors; and cyber-attacks. The group’s game development businesses depend on their ability to continue releasing successful titles that attract paying customers, conditions that are not under the group’s full control. Risks and uncertainties are also described in more detail in the 2022 Annual Report, which is available at www.mtg.com.  Stockholm, April 26, 2023  Maria Redin Group President & CEO, Modern Times Group MTG AB

===== SIDA 12 =====

Q1 2023 Modern Times Group MTG AB  12 
Condensed consolidated income statement (SEKm) Q1 2023 Q1 2022 FY  2022 Continuing operations     Net sales 1,306 1,357 5,537 Cost of goods and services ¹ -338 -631 -1,523 Gross income 968 726 4,014      Selling expenses -564 -285 -2,215 Administrative expenses -288 -359 -1,278 Other operating income 7 4 44 Other operating expenses -2 -1 -7 EBIT 121 85 558      Net interest 43 -12 54 Other financial items -104 -110 -114 Income before tax 60 -36 498      Tax -36 -75 -246 Net income for the period, continuing operations 24 -111 252      Discontinued operations     Esport - -204 6,223 Net income for the period, discontinued operations - -204 6,223      Total net income for the period 24 -315 6,475      Net income for the period attributable to:     Equity holders of the parent 24 -290 6,579 Non-controlling interest - -26 -105 Net income for the period 24 -315 6,475      Continuing operations     Basic earnings per share, SEK 0.20 -0.77 2.70 Diluted earnings per share, SEK 0.20 -0.77 2.69      Total     Basic earnings per share, SEK 0.20 -2.62 56.26 Diluted earnings per share, SEK 0.20 -2.62 56.06      Number of shares     Shares outstanding at the end of the period 121,374,752 110,385,832 123,731,164 Basic average number of shares outstanding 122,588,564 110,385,832 116,950,340 Diluted average number of shares outstanding 122,894,471 110,585,685 117,355,207 1) "COGS" was charged with SEK 310million in "Selling expenses" in Q1 2022. These costs were reclassified as of Q2 2022.

===== SIDA 13 =====

Q1 2023 Modern Times Group MTG AB  13 
Consolidated statement of comprehensive income (SEKm) Q1 2023 Q1 2022 FY  2022 Net income 24 -315 6,475 Other comprehensive income     Items that are or may be reclassified to profit or loss net of tax:     Currency translation differences 36 190 842 Total comprehensive income for the period 60 -125 7,317      Total comprehensive income attributable to     Equity holders of the parent 60 -137 7,402 Non-controlling interest - 11 -85 Total comprehensive income for the period 60 -125 7,317

===== SIDA 14 =====

Q1 2023 Modern Times Group MTG AB  14 
Condensed consolidated balance sheet (SEKm) Mar 31  2023 Mar 31 2022 Dec 31  2022 Non-current assets     Goodwill  10,313 9,797 10,285 Other intangible assets 2,359 2,645 2,410 Total intangible assets 12,671 12,442 12,695      Total tangible assets 55 58 58      Right of use assets 60 83 65      Shares and participations in associated and other companies 440 384 409 Other financial receivables 184 130 200 Total non-current financial assets 625 514 609 Total non-current assets 13,411 13,096 13,427      Current assets     Other receivables 690 648 608 Cash and cash equivalents 4,019 894 4,733 Assets held for sale - 3,201 - Total current assets 4,709 4,743 5,341 Total assets 18,120 17,839 18,769      Equity     Shareholders’ equity 13,817 7,868 13,934 Non-controlling interest - 1,932 - Total equity 13,817 9,801 13,934      Non-current liabilities     Liabilities to financial institutions - 1,000 - Lease liabilities 27 52 32 Total non-current interest-bearing liabilities 27 1,052 32      Provisions 617 666 620 Contingent consideration 1,532 2,058 1,409 Total non-current non-interest-bearing liabilities 2,150 2,725 2,030 Total non-current liabilities 2,177 3,777 2,062      Current liabilities     Contingent consideration 852 360 1,293 Liabilities to financial institutions - 1,000 - Lease liabilities 34 32 34 Other interest-bearing liabilities¹ 466 764 707 Other non-interest-bearing liabilities 774 763 737 Liabilities related to assets held for sale - 1,343 - Total current liabilities 2,126 4,262 2,773 Total liabilities 4,303 8,039 4,835 Total shareholders’ equity and liabilities 18,120 17,839 18,769 1) Liability for acquisition of the remaining 7.2 % of PlaySimple SEK 466 million.

===== SIDA 15 =====

Q1 2023 Modern Times Group MTG AB  15 
Condensed consolidated statement of cash flows (SEKm) Q1 2023 Q1 2022 FY 2022 Income before tax adjusted for items not included in cash flow 386 273 1,447 Taxes paid -78 -67 -408 Changes in working capital -46 -127 -171 Cash flow from operations 262 79 868        Acquisition of subsidiaries, associates and other investments -162 -5 -85 Earnout payments -463 - -317 Investments in other non-current assets -62 -63 -234 Cash flow from investing activities -687 -68 -636        Net change in borrowings - 100 -1,900 Repayment share redemption - - -2,733 Repurchase of shares -186 - -443 Loan to / repayment of loans from discontinued operations - -62 154 Other cash flow from/used in financing activities -9 -7 -51 Cash flow from financing activities -195 31 -4,974         Net change in cash, continuing operations -619 42 -4,741        Net change in cash, discontinued operations  - 44 8,459        Total net change in cash and cash equivalents -619 85 3,717        Cash and cash equivalents at the beginning of the period 4,733 943 943 Translation differences in cash and cash equivalents -95 -134 74 Cash and cash equivalents at end of the period 4,019 894 4,733   Condensed consolidated statement of changes in equity (SEKm) Mar 31  2023 Mar 31 2022 Dec 31  2022 Opening balance 13,934 9,923 9,923 Net income for the period 24 -315 6,475 Other comprehensive income for the period 36 190 842 Total comprehensive income for the period 60 -125 7,317      Effect of employee share programs 8 3 16 Repurchase of shares -186 - -450 Change in non-controlling interests - - -138 Redemption of shares - - -2,733 Closing balance 13,817 9,801 13,934

===== SIDA 16 =====

Q1 2023 Modern Times Group MTG AB  16 
Parent company condensed income statement (SEKm) Q1 2023 Q1 2022 FY  2022 Net sales 15 12 40 Gross income 15 12 40      Administrative expenses -43 -54 -218 Operating income -27 -42 -178      Net interest and other financial items ¹ -51 -8 7,705 Income before tax and appropriations -78 -49 7,527      Appropriations - - 224      Tax -                      -  -6 Net income for the period -78 -49 7,746 1) Received dividend net of impairment during 2022 for a total of SEK 7.6 billion  Net income for the period is in line with total comprehensive income for the parent company. Parent company condensed balance sheet (SEKm) Mar 31  2023 Mar 31 2022 Dec 31  2022 Non-current assets     Capitalized expenditure 0 1 0 Machinery and equipment 1 1 1 Shares and participations 22,463 11,372 22,463 Total non-current assets 22,465 11,374 22,465      Current assets     Current receivables 24 145 622 Cash and cash equivalents 2,816 157 3,625 Total current assets 2,840 302 4,246 Total assets 25,305 11,676 26,711      Shareholders’ equity     Restricted equity 670 585 670 Non-restricted equity 14,833 9,044 15,089 Total equity 15,503 9,630 15,759      Untaxed reserves 9 - 9      Non-current liabilities     Provisions 9 0 7 Liabilities to financial institutions - 1,000 - Total non-current liabilities 9 1,000 7      Current liabilities     Other interest-bearing liabilities 9,754 1,000 10,502 Non-interest-bearing liabilities 30 46 434 Total current liabilities 9,784 1,046 10,936 Total shareholders’ equity and liabilities 25,305 11,676 26,711

===== SIDA 17 =====

Q1 2023 Modern Times Group MTG AB  17 
Financial instruments at fair value The carrying amounts are considered to be reasonable approximations of fair value for all financial assets and liabilities, except shares and participations in other companies for which the valuation technique is described below. (SEKm) Mar 31  2023       Dec 31  2022       
 Carrying value Level 1 Level 2 Level 3 Carrying value Level 1 Level 2 Level 3 Financial assets measured at fair value             Shares and participations in other companies 440 - - 440 408 - - 408 Financial liabilities measured at fair value             Contingent consideration 2,384 - - 2,384 2,703 - - 2,703 Valuation techniques Shares and participations in other companies – acquisition cost is initially considered to be a representative estimate of fair value. Subsequently, values are remeasured at fair value and gains/losses recognized when there is subsequent financing through participation by a third-party investor, in which case the price per share in that financing is used, when there is a realized exit or when there are indications that cost is not representative of fair value and sufficient, more recent information is available to measure fair value. Listed holdings are valued at the current share price.  (SEKm) Mar 31  2023 Dec 31  2022 Opening balance 1 January 408 346 of which discontinued operations - -11     Reported gains and losses in net income for the period -5 22 Acquisition 6 23 Translation differences 3 21 Loan converted to shares 27 8 Closing balance 440 408  Contingent consideration – expected future values are discounted to present value. The discount rate is risk-adjusted. The most critical parameters are estimated future revenue growth and future operating margin. (SEKm) Mar 31  2023 Dec 31  2022 Opening balance 1 January 2,703 2,318 of which discontinued operations - -9     Exercised payments -463 -317 Revaluation 102 224 Interest expense 69 220 Translation differences -27 267 Closing balance 2,384 2,703  (SEKm) 2023 2024 2025 2026 2027+ Total Cash Consideration  -           748           736           550             27  2,060 Share Consideration  -      104            221   -   -  324 Total contingent consideration¹ -      852      956       550   27  2,384 1) Excercised payments related to contingent considerations during 2023 amount to SEK 463 million

===== SIDA 18 =====

Q1 2023 Modern Times Group MTG AB  18 
Alternative performance measures The purpose of alternative performance measures (APMs) is to facilitate the analysis of business performance and industry trends that cannot be directly derived from financial statements. MTG uses the following APMs: ■ Adjusted EBITDA ■ Change in net sales from organic growth ■ Pro forma growth Reconciliation of adjusted EBITDA Adjusted EBITDA is used to assess MTG’s underlying profitability. Adjusted EBITDA is defined as EBITDA adjusted for the effects of items affecting comparability, non-recurring bonus structures, acquisition-related transaction costs and impairment of capitalized internal work. Items affecting comparability refers to material items and events related to changes in the group’s structure or lines of business, which are relevant for understanding the group’s development on a like-for-like basis. During the second quarter of 2022 the group changed its definition of adjusted EBITDA. The new definition of adjusted EBITDA does not include the group’s various operational incentive programs and only includes non-recurring bonus structures. (SEKm) Q1 2023 Q1 2022 FY  2022 EBIT 121 85 558 Amortization 118 145 637 Depreciation 6 9 34 EBITDA 245 239 1,229 Impairment own capitalized costs - 7 26 Non-recurring bonus structures¹ 13 71 99 M&A transaction costs 5 26 19 Adjusted EBITDA 263 342 1,373 1) Long term incentive programs are included in figures in Q1 2022  Reconciliation of sales growth  Since the group generates the majority of its sales in currencies other than the reporting currency (i.e., SEK, Swedish krona) and currency rates have proven to be rather volatile, the group's sales trends and performance are analyzed as changes in organic sales growth. This presents the increase or decrease in the overall SEK net sales on a comparable basis, allowing for separate discussions of the impact of exchange rates, acquisitions, and divestments. The following table presents changes in organic sales growth as reconciled to the change in the total reported net sales. (SEKm) Q1 2023 Q1 2022 FY  2022 Group     Organic growth -11% -9% -4% Acquisition/divestments 0% 80% 35% Changes in FX rates 7% 6% 9% Reported growth -4% 77% 41%

===== SIDA 19 =====

Q1 2023 Modern Times Group MTG AB  19 
Definitions Adjusted EBITDA EBITDA, adjusted for the effects of items affecting comparability, long-term incentive programs, acquisition-related transaction costs and impairment of own work capitalized, which are referred to as adjustments. ARPDAU Average revenue per daily active user. CAPEX Capital expenditures. CASH CONVERSION Operating cash flow in relation to adjusted EBITDA. DAU Daily active users. Earnings per share Earnings per share is expressed as net income attributable to equity holders of the parent divided by the average number of shares. EBIT/Operating income Net income for the period from continuing operations before other financial items, net interest and tax. EBITDA Profit for the period from continuing operations before other financial items, net interest, tax and depreciation and amortization.  Items affecting comparability (IAC) Items affecting comparability refers to material items and events related to changes in the group’s structure or lines of business, which are relevant for understanding the group’s development on a like-for-like basis. MAU Monthly active users.   Organic growth The change in net sales compared with the same period last year, excluding acquisitions and divestments and adjusted for currency effects. Pro forma growth The change in net sales compared with the same period last year as if the company had fully consolidated its acquisitions and divestments as of the previous period and adjusted for currency effects. The pro forma figures have been prepared with advice from external expertise in order to restate a GAAP financial statement to IFRS and may include timing adjustments for both income and costs. Pro forma revenue Revenue presented as if the company would had fully consolidated its acquisitions and divestments. The pro forma figures have been prepared with advice from external expertise in order to restate a GAAP financial statement to IFRS and may include timing adjustments for both income and costs. Pro forma UA spend User acquisitions costs presented as if the company would had fully consolidated its acquisitions and divestments as of the previous period . The pro forma UA spend figures are presented in local GAAP for the respective portfolio companies from the time periods prior to being consolidated by MTG. Transactional currency effect The effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. This refers to the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it. Translational currency effect Converting one currency to another, often in the context of the financial results of foreign subsidiaries into the parent company’s and/or the group’s functional currency. UA User acquisition.

===== SIDA 20 =====

Q1 2023 Modern Times Group MTG AB  20 
Shareholder information MTG’s Annual General Meeting 2023 The Annual General Meeting will be held on May 17 2023 in Stockholm.  All information relating to the Annual General Meeting, including the notice, the Nomination Committee's proposals and related materials has been published at www.mtg.com.     Financial calendar Item Date Q1 2023 Interim Financial Results report April 26, 2023 Annual General Meeting 2023 May 17, 2023 Q2 2023 Interim Financial Results report July 20, 2023 Q3 2023 Interim Financial Results report October 25, 2023    Questions? Anton Gourman, VP Communications  Direct: +46 73 661 8488, anton.gourman@mtg.com  Follow us: mtg.com / Twitter / LinkedIn Conference call  MTG will host a livestream and conference call at 3.00 p.m. CEST on the same day. The call will be held in English.  How to join: • To participate via livestream, please use this link. • To join via phone, please register on this link. After you’ve registered, you’ll receive the dial-in number and conference ID to access the teleconference. • You can ask questions via phone during the teleconference or by using the livestream Q&A tool.

===== SIDA 21 =====

Q1 2023 Modern Times Group MTG AB  21 
 
   Modern Times Group MTG AB (publ.) – Reg no: 556309-9158 – Phone: +46 (0) 8-562 000 50  MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is an international mobile gaming group that owns and operates gaming studios with popular global IPs across a wide range of casual and mid-core genres. The group is focused on accelerating portfolio company growth and supporting founders and entrepreneurs. MTG is an active driver of gaming industry consolidation and a strategic acquirer of gaming companies around the world. We are born in Sweden but have an international culture and global footprint. Our shares are listed on Nasdaq Stockholm (“MTGA” and “MTGB”).  This information is information that Modern Times Group MTG AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 7:30 a.m. CEST on April 26, 2023. This interim report contains statements concerning, among other things, MTG’s financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent MTG’s future expectations. MTG believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to MTG’s market position; growth in the gaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of MTG, its group companies and the gaming industry in general. Forward-looking statements apply only as of the date they were made, and, other than as required by applicable law, MTG undertakes no obligation to update any of them in the light of new information or future events.