FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
===== SIDA 1 =====
Q1 2025 Modern Times Group MTG AB 1
MTG kicks off 2025 with a strong Q1 with 6% organic revenue
growth and healthy operating margin of 24%
Historic milestone Q1 defined by closing of transformative acquisition of Plarium and strong organic growth1 on the
back of scaled-up marketing for key titles and new games. Plarium was consolidated from 1 February and reported
revenues were therefore up 77% year over year in Q1. Our original studios continued to successfully scale profitable
marketing, with UA spend up 26% year over year for our original studios in Q1. Total user acquisition spend (UA)
represented 38% of net sales in Q1. Total adjusted EBITDA amounted to SEK 616 million in Q1, a 56% increase year
over year in, with an operating margin of 24%.
Financial highlights Q1
■ Net sales increased by 77% to SEK 2,557 (1,447) million year over year (6% organic growth) and were up 79% in constant currencies
■ UA spend of SEK 960 (527) million corresponding to 38% (36%) of revenues and up 26% year over year for our original studios
■ Adjusted EBITDA up by 56% year over year to SEK 616 (396) million with an adjusted EBITDA margin of 24% (27%), adjustments
included SEK 14 million for M&A transaction costs and revaluation of put/call options
■ Reported EBITDA of SEK 594 (377) million and EBIT of SEK 290 (236) million driven by increased amortization levels of intangible
assets arising from the acquisition of Plarium, primarily related to RAID: Shadow Legends
■ Net financial items of SEK - 85 (-157) million, driven mainly by MTG’s outstanding liability of the Class C shares held as part of the
PlaySimple transaction. Net interest amounted to SEK -19 (33) million
■ Tax amounted to SEK -140 (-111) million
■ Total net income of 65 (-31) million
■ Non-cash impairment of SEK 675 million of MTG’s shareholding in Monumental 2 impacting OCI due to lower -than-expected
performance in the company combined with lowered future expectations
■ Cash flow from operations of SEK 176 (293) million driven by changes in working capital , including a non-cash change in deferred
revenues at the time of the acquisition of Plarium. Cash conversion of 56% for the 12-month period ended 31 March 2025
■ Cash and cash equivalents at the end of the period amounted to SEK 2,176 (3,332) million with a net financial debt of SEK 2,493 million
■ MTG’s has set November 13 as the new date for the announcement of our financial results for Q3 and nine-month period of 2025
Financial overview
1 Organic growth is defined as revenues from the studios MTG owned throughout the whole of 2024 and is calculated in
constant currencies
2 MTG owns 30% of the shares and less than 20% of the votes in Monumental, and reports this investment as a financial
asset. MTG received the shares as payment for Monumental's acquisition of Kongregate in February 2024.
(SEKm)
Q1
2025
Q1
2024
FY
2024
Net sales 2,557 1,447 6,015
EBIT 290 236 901
EBITDA 594 377 1,476
Adjusted EBITDA 616 396 1,666
Net income 65 -31 -210
Cash flow from operations 176 293 1,340
Basic earnings per share (SEK) 0.55 -0.26 -1.74
Diluted earnings per share (SEK) - -0.26 -1.74
Growth
Sales growth, % 77% 11% 3%
Changes in FX rates -3% 1% 0%
Sales growth at constant FX 79% 10% 3%
of which organic growth 6% 4% -1%
===== SIDA 2 =====
Q1 2025 Modern Times Group MTG AB 2
President & CEO’s comments
Strong Q1 kicks off
2025 with 6% organic
growth, healthy
margins and closed
transformative deal
The first quarter of 2025 is one
of the most significant
milestone periods in our history. The closing of the
transformative acquisition of Plarium significantly
enhances our scale as a combined gaming group, nearly
doubling our total revenues . The closing expands our
portfolio with both high quality games, headlined by RAID:
Shadow Legends, and effective commercial tools,
including a best -in-class publishing platform. In addition,
the consolidation expands our pipeline of new games for
2025 and 2026, which is a key element in our future growth
journey.
It also makes me very happy to report strong organic year
over year growth of 6%, together with scaled up marketing
in our original studios in Q1. This, combined with a healthy
operating margin in the quarter, reflects the strength of our
operating model and quality of our studios.
We kicked off the integration work immediately after
closing the Plarium transaction and are now evaluating
how the combination of ours and Plarium’s tech and tools
can help us accelerate our strategic execution and
delivery. I am convinced that MTG and Plarium are set to
be better together, and I am also excited about the
prospects of what we can achieve over the medium and
long term as a scaled gaming group.
Good operational momentum in Q1
Our good operational momentum continued throughout
Q1 and into April . This sets us up to continue scaling
marketing in Q2, and to deliver profitable organic growth
in 2025 and beyond. Our studios remain focused on
delivering effective live-ops and engaging content in our
established evergreen titles, combined with an ambitious
agenda to launch and scale new games to expand our
portfolio over time.
Our organic revenue growth in the quarter was driven by
the ongoing traction in our Word Games, continued strong
growth in Warhammer 40,000: Tacticus and our new title
Heroes of History, which has been resonating with players
and scaling rapidly with encouraging KPIs. RAID: Shadow
Legends, now our largest title, had an encouraging March
with strong event performance.
Total net sales were up 77% year over year in Q1 following
the consolidation of Plarium . Our top line results in the
quarter were negatively affected by currency headwinds
from the weakening US dollar and we therefore reported
79% year on year sales growth in constant currencies.
Front-loaded marketing investments
driving growth
We invested a total of SEK 960 million in user acquisition
in Q1, corresponding to 38% of our revenues. UA spend
was up 26% year over year for our original studios, as we
continued to invest at healthy return levels after the
seasonally strong Q4 last year.
The biggest drivers of our year over year increase in UA
were the geographical expansion of our word games, our
new well-performing strategy and city building title Heroes
of History and Warhammer 40,000: Tacticus. We are very
happy with this performance and will continue to invest in
growth while maintaining our disciplined approach to
return on ad spend.
We reported SEK 616 million of total adjusted EBITDA in
Q1. This performance reflected the consolidation of
Plarium and the increased user acquisition levels in three
of our studios mentioned above. We therefore delivered
an operating margin of 24% in the first quarter.
We reported a cash conversion of 56% for the 12-month
period ending on 31 March 2025, which was within our
current long-term guided range of 50%-60% . The result
mainly reflected negative working capital in the quarter , a
non-cash change in deferred revenues at the time of the
Plarium acquisition and higher tax payments.
We are building a scaled, leading ecosystem
for game makers
Thanks to the Plarium acquisition, we are now the largest
listed mobile gaming company in Europe and in the top-10
list of mobile developers in the West. Part of our vision
and strategy as a gaming group is to build a synergetic
common layer of shared proprietary tech and tools. The
acquisition of Plarium enables us to accelerate this
journey by adding strong proprietary technol ogies like
GoGame, which is Plarium’s marketing tools and tech, and
Plarium Play, a strong publishing platform, to our portfolio.
We have already made good progress on evaluating areas
of collaboration and the potential for acceleration and
commercial synergies and increased efficiency that comes
from our combined portfolio of tools and tech. Our firm
belief is that we will be a better group together, and our
ambition is to accelerate our overall commercial evolution
and help our studios to work closer together.
We also continue to explore future M&A. As we scale and
evolve, we can offer new studios more opportunities, more
support and more knowledge when they join MTG. I want
MTG to be a place that game makers are proud to call
home and a group that attracts new , exciting talents. At
the same time, we have a firm M&A framework in place,
and we will continue to be highly selective in any future
deals.
===== SIDA 3 =====
Q1 2025 Modern Times Group MTG AB 3
Last, but not least, we continue to execute on the share
buyback program that runs until the end of April this year.
Our Board of Directors is also seeking a new share
repurchase mandate from the 2025 AGM in May.
Thank you for following our journey. We have a lot of
exciting work ahead of us in 2025 and I look forward to
continue updating you on our progress as we continue to
transform MTG for the future.
Maria Redin
Group President & CEO, Modern Times Group MTG AB
2025 outlook
MTG’s outlook for the full year 2025 is for organic sales
(sales from MTG’s businesses prior to the acquisition of
Plarium, in constant currencies) to be within the range of
3% to 7%.
MTG intends to continue driving organic growth through
continued scaled, but disciplined, marketing. The group
therefore expects its full year, total reported adjusted
EBITDA margin (including Plarium) to be within the range
of 21% to 24%. The final margin will depend on the returns
on, and levels of investment in, the marketing of new and
established games, combined with the success of our
geographical expansion.
===== SIDA 4 =====
Q1 2025 Modern Times Group MTG AB 4
Significant events
February 12 – MTG announces that it has su ccessfully
closed the transaction, signed on November 11, 2024, to
acquire 100% of Plarium Global Ltd., the developer behind
the #1 global RPG RAID: Shadow Legends . The deal
ensures that MTG has the relevant scale to become one
of the world’s leading operators of successful mid-core
and casual games.
February 25 – MTG announces that Nick Hopkins has
been appointed as the group’s Chief Financial Officer.
Nick will join in May and will leverage skills and experience
from over 15 years in investment banking, where he has
covered and advised on a range of sectors including
gaming, media, technology and consumer retail.
Further information about the group’s significant
events can be found on MTG’s homepage on
www.mtg.com
===== SIDA 5 =====
Q1 2025 Modern Times Group MTG AB 5
Group performance
Net sales
Following the acquisition of Plarium, our games portfolio now includes 47 live games. Net sales for the group were up by 6%
organically year over year and by 77% year over year in Q1 to SEK 2,557 million, with a -3% negative impact from currency
effects. The organic increase was driven by Snowprint, PlaySimple, Ninja Kiwi and InnoGames, while the reported year over
year increase reflected the consolidation of Plarium.
Reported sales by franchise
Word Games franchise revenues were up 7% year over
year but decreased by -5% sequentially in constant
currencies. The growth was primarily driven by the
ongoing geographical expansion of key games beyond
English-speaking markets, which has expanded the player
base for the franchise, setting the stage for long- term
organic growth.
PlaySimple has continued to expand its established
games with features designed to boost engagement and
improve the player experience. The team updated the
visuals in Word Tri p, launched a new puzzle format and
live-ops in Daily Themed Crossword to support level
progression and retention , added new puzzle types to
enrich the gaming experience in Crossword Jam . To
further strengthen engagement, the team launched a PvP
event and refreshed content in Word Search while Word
Roll received features for a more seamless player
experience.
The team also continued to actively evolve its casual
games outside the Word Games franchise. Tile Match was
expanded with new in-game events and content to drive
engagement. The user experience was enhanced in Two
Square: 2048 Numbers Merge with targeted
improvements aimed at strengthening player retention.
During the quarter, PlaySimple also soft-launched Word
Search Solitaire and Crossword Go on iOS. These games
are currently in a testing phase and have not yet been
officially released.
Strategy & Simulation franchise revenues were up 10%
year over year but down sequentially by -13% in constant
currencies.
Forge of Empires hosted the Wildlife and the St Patrick’s
events during the quarter which were well received by
players. They also launched a third event at the end of
March.
Heroes of History continues to outperform previous new
releases from InnoGames on a like -for-like basis. In Q1,
the team expanded the game significantly with three in-
game seasons featuring six new heroes, including Amelia
Earhart and Wolfgang Amadeus Mozart.
Snowprint launched a downloadable PC desktop version
of Warhammer 40,000: Tacticus, offering players greater
flexibility and creating new monetization opportunities.
The team also rolled out a web store loyalty program,
adding an extra layer of rewards for players and
encouraging gameplay outside of the mobile app stores .
The legendary character Dante made a highly anticipated
debut, drawing strong engagement from the community
and further cementing the game’s appeal among core
Warhammer fans.
Plarium franchise games were consolidated from
February 1 and contributed SEK 1,066 million of revenue
in Q1. RAID: Shadow Legends, now our largest title
following the acquisition of Plarium, celebrated its sixth
anniversary in March with the Festival of Creation - a
large-scale in-game event. The celebration included a
special Fusion event and free in-game content designed
to drive player engagement and reactivation. The
milestone celebration delivered an all-time daily revenue
record for the game, with March 2025 being the 4th all-
time highest month ever in terms of revenues. During the
quarter, the team expanded the game’s reach and
launched it on an alternative app store called Aptoide.
(SEKm)
Q1
2025
Q1
2024
FY
20
24
Net sales 2,557 1,447 6,015
Sales growth, % 77% 11% 3%
Changes in FX rates -3% 1% 0%
Sales growth at constant FX 79% 10% 3%
of which organic growth 6% 4% -1%
(SEKm)
Q1
2025
Q4
20 24
Q3
2024
Q2
2024
Q1
2024
Plarium 1,066 - - - -
Wo
rd Games 608 671 552 561 575
Strategy & Simulation 567 674 524 507 521
Racing 114 135 161 166 129
Tower Defense 108 101 120 120 114
Other smaller franchises 95 112 81 84 108
Total sales 2,557 1 ,693 1, 4 3 8 1, 4 3 7 1 ,447
===== SIDA 6 =====
Q1 2025 Modern Times Group MTG AB 6
They also introduced five new Champions inspired by
Alice in Wonderland to the game, adding fresh content to
drive player engagement.
Mech Arena hosted a St Patrick ’s Day celebration with
green themed puzzles and events to keep players
engaged. In March, they launched a new season – Dead
Tropical Island – introducing the new Mech Leech, new
weapons, a new map, and two new skins for each Mech.
Plarium’s casual title, Merge Gardens, continued to grow
its live operations. The team launched a Valentine’s Day
event with themed puzzles, mission boards and special
offers to boost engagement and in-game spending. In
March, the game introduced Maze Quest, a new game
mode in tournament style that was also featured on the
Apple App Store, which resulted in increased visibility and
installs. A new monetization system was also introduced,
with the goal of increasing in-game purchases.
Tower Defense franchise revenues was up 3% year over
year and up 15% sequentially in constant currencies.
In February Ninja Kiwi launched Rogue Legends, a major
expansion for Bloons TD 6, which offers a new single-
player mode with dynamic content . The expansion was
well received by the Bloons community and has been a
major driver behind the franchise’s revenue performance
in the quarter . The team also added a new map and an
advanced new tower to the game.
Bloons Card Storm is still in soft launch and introduced
several new features in thei r latest update, most notably
the new Ranked mode – a competitive real -time
multiplayer experience that has quickly became a player
favorite.
Ninja Kiwi continued development on two upcoming titles
during the quarter. The team plans to release Fightland, a
large-scale team battle arena based on a new IP, in early
access next quarter. Work also progressed on Zombie
Assault: Resurgence, the second instalment in the popular
action shooter game.
Racing franchise revenues were down by -12% both year
over year and sequentially in constant currencies. The first
quarter is typically slower for the franchise, as the annual
F1 Clash season reset is launched in Q2, following the
launch of the F1 racing season in March. The team has
successfully continued to focus on driving the game’s
performance in the off -season with key content, and
revenues in F1 Clash were therefore up year over year.
The team has also focused on the launch of Matchcreek
Motors, taking the learnings from the match-3 game Forza
Customs. As Hutch has reallocated their resources from
Forza Customs to Matchcreek Motors, the push has led to
a natural short-term year over year decline in revenues for
the racing franchise. The new game targets a somewhat
older and more casual audience. The team is monitoring
early KPIs and will begin testing marketing performance at
low levels in Q2.
New games in early scaling and soft launch
Title/platform expansion Publisher Type
Matchcreek Motors Hutch Early scaling
Hot Wheels: Race Off Hutch Apple Arcade launched
Crossword Go PlaySimple Soft launch, Apple only
Cryptogram PlaySimple Soft launch, Android & Apple
Two Square: 2048 Numbers Merge PlaySimple Commercial launch
Tile Match PlaySimple Commercial launch
WordSearch Solitaire PlaySimple Soft launch
Word Trip PlaySimple Commercial launch
Heroes of History InnoGames Early scaling
Cozy Coast InnoGames Soft launch during Q2
Bloons Card Storm Ninja Kiwi Early scaling
Fightland Ninja Kiwi New game launch
Bloons TD 6 Ninja Kiwi Switch launch
Zombie Assault: Resurgence Ninja Kiwi New game launch
Elf Islands Plarium Soft launch
42%
24%
22%
4%
4% 4%
Sales by franchise, %
Plarium Word Games St rate gy & Simulat ion
T ower Defense R acing Other smaller franchises
===== SIDA 7 =====
Q1 2025 Modern Times Group MTG AB 7
Key performance indicators
The group’s total daily active users (DAU) grew by 44% sequentially, due to the inclusion of Plarium and supported by strong
contributions from PlaySimple’s geographical expansion of their word games. The Strategy & Simulation franchise also
reported increased DAU levels, driven by the strong performance of new title Heroes of History. DAU’s were up on an organic
basis in Q1, both year over year and from Q4 2024.
Average Revenue per Daily Active User (ARPDAU) grew sequentially by 7 %, driven by the consolidation of Plarium.
Combined ARPDAU for our original studios declined somewhat sequentially from the fourth quarter , as PlaySimple ’s user
base grew rapidly, which resulted in lower ARPDAU levels. The year over year growth was driven by the inclusion of Plarium,
as well as increased ARPDAU levels in Hutch, Ninja Kiwi and InnoGames, offset by lower year over year ARPDAU levels in
our PlaySimple, reflecting the growing user base in new territories.
The group’s top three largest games in Q1 were RAID: Shadow Legends, Forge of Empires and Warhammer 40,000: Tacticus.
Together, these games accounted for 49% of the group’s revenues in the first quarter, compared to 41% in the fourth quarter.
Mobile represented 73% (75%) of total revenues in the first quarter, while direct to consumer revenues, including browser,
accounted for 24% (20%).
Q1
2025
Q4
2024
Q3
2024
Q2
2024
Q1
2024
DAU, million 9.0 6.3 6.1 5.8 6.5
MAU, million 41.6 30.5 28.3 26.9 31.9
ARPDAU, SEK 3.1 2.9 2.6 2.7 2.5
Revenue generated by the top 3 games, % 49% 41% 39% 38% 40%
Revenue generated by platform, %
Mobile 73% 78% 77% 76% 75%
Direct to consumer 24% 19% 19% 19% 20%
Other 3% 3% 5% 5% 4%
Revenue generated by territory, %
Europe 35% 34% 35% 33% 32%
North America 57% 60% 59% 61% 63%
Asia Pacific 7% 5% 5% 5% 4%
Rest of World 1% 1% 1% 1% 1%
Revenue generated by monetization type, %
IAP 76% 60% 62% 61% 59%
IAA 21% 36% 32% 33% 35%
Other 3% 4% 6% 6% 5%
UA spend, SEKm 960 677 548 470 527
===== SIDA 8 =====
Q1 2025 Modern Times Group MTG AB 8
Adjusted EBITDA, EBITDA and EBIT
Total user acquisition (UA) costs accounted for 38% of group revenues in Q1, up from 36% in the same period last year but
slightly down from 40% in Q4. UA spend for our original studios was up 26% year over year in constant currencies, driven by
scaled marketing investments in the geographical expansion of word games, our new Strategy and Simulation franchise title
Heroes of History and Warhammer 40,000: Tacticus. Total group UA spend was up 84% year over year in Q 1, following the
consolidation of Plarium from 1 February 2025.
We reported a 56% increase in adjusted EBITDA to SEK 616 (396) million in Q 1, with an operating margin of 24% in Q1,
primarily driven by the consolidation of Plarium and increased marketing investments in several of our game franchises.
The group’s adjustments to reported EBITDA amounted to SEK 21 (19) million in the quarter. This included an adjustment for
non-recurring bonus structures of SEK 7 (14) million and an adjustment for M&A transaction costs of approximately SEK 14
(5) million. The group’s adjustments to reported EBITDA also included the performance-based revaluation of put/call options.
Depreciation and amortization amounted to SEK 304 (141) million and included amortization of purchase price allocations
(PPA) of SEK 245 (100) million. The increased amortization levels arise from allocated surplus values related to RAID:
Shadow Legends as well as other identified intangible assets following the consolidation of Plarium.
Excluding PPA, depreciation and amortization amounted to SEK 59 (41) million.
Consolidated EBIT was SEK 290 (236) million in the quarter, which corresponded to an EBIT margin of 11% (16%). Operating
costs before depreciation and amortization increased by 84% year over year to SEK 1,963 (1,069) million.
(SEKm)
Q1
2025
Q1
2024
FY
2024
EBIT 290 236 901
Amortization 275 126 516
Depreciation 29 15 59
EBITDA 594 377 1, 4 7 6
Items affecting comparability - - 0
Impairment own capitalized costs - - 8
Non-recurring bonus structures 7 14 24
M&A transaction costs and revaluation of put/call options 14 5 158
Adjuste d EBITDA 6 16 396 1 ,666
Adjusted EBITDA margin 24% 27% 28%
===== SIDA 9 =====
Q1 2025 Modern Times Group MTG AB 9
Net financials
Total net financial items amounted to SEK -85 (-157) million in the quarter, of which net interest amounted to
SEK -19 (33) million and other financial items to SEK - 67 (-190) million. Other financial items comprised discounting effects
and revaluation and exchange rate effects on earnout liabilities and amounted to SEK 76 (-241) million.
In addition, other financial items included a SEK -101 (16) million revaluations of financial liability related to the class C shares
held by the group as the final payment part of the agreement to acquire PlaySimple. MTG holds these C shares as an off -
balance sheet item, and a future transfer of shares to PlaySimple will not have a cash impact. The revaluation of the financial
liability related to the C shares was impacted by the uplift in the MTG B share price during the quarter. Other financial items
also a SEK -41 million effect from the final adjustment of the purchase price in PlaySimple related to an incentive plan taken
over by MTG at the time of the acquisition.
Other financial items also included the revaluation of put/call options of SEK 2 (-) million and exchange rate differences in the
quarter amounted to SEK 20 (37) million, of which SEK -10 (-12) million relates to VC fund s. In addition other revaluation
effects amounted to SEK -23 million.
Taxes
The group’s tax amounted to SEK -140 (-111) million in the quarter.
Venture capital fund investments
The MTG VC fund has invested a total of SEK 415 (USD 40) million in a total of 26 companies to date. VC investments
complement MTG’s majority stake investment in InnoGames, Hutch, Ninja Kiwi, PlaySimple, Snowprint and Plarium.
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.
(SEKm)
Q1
2025
Q1
2024
FY
2024
Net interest -19 33 129
Revaluation earnout effects 76 -241 -690
Revaluation PlaySimple debt (C-shares) -101 16 -68
Revaluation purchase price -41 - -
Put/call option 2 - -111
Exchange rate differences 20 37 35
Other -23 -1 -14
Total financial net -85 - 15 7 - 7 19
===== SIDA 10 =====
Q1 2025 Modern Times Group MTG AB 10
Financial review
Cash flow
Cash flow from operations
Total cash flow from operations amounted to SEK 176 (293) million in the quarter . The group reported changes in working
capital of SEK -140 (39) million in the quarter. The year over year change in working capital reflected the timing of certain
payments and effects from the consolidation of Plarium, which included differences in accounts receivables and a non-cash
accounting change in deferred revenues at the time of the acquisition. Paid taxes amounted to of SEK -214 (-78) million in
the quarter, driven in part by the payment of taxes related to 2023 in one of our studios.
Cash flow from i nve sting act ivit ie s
Total cash flow relating to investing activities amounted to SEK -6,045 (-45) million in the quarter . This mainly consisted of
acquisition of subsidiaries amounted to SEK -5,988 (0) million. Investing activities also included capital expenditure on tangible
and intangible assets amounting to SEK -41 (-24) million, primarily comprising capitalized development costs for games and
platforms. In addition, other investments amounted to SEK -16 (-4) million.
Cash flow from f inancing activit ie s
Total cash flow relating to financing activities amounted to SEK 4,685 (-10) million, mainly consisting of a repurchase of shares
amounted to SEK -110 (-199) million, loans amounted to SEK 4,807 (0) million and the group’s leasing payments.
The net change in cash and cash equivalents amounted to SEK -1,184 (240) million in the quarter and the group had a total
cash and cash equivalents of SEK 2,176 (3,332) million at the end of the period.
Net debt
Net financial debt refers to the sum of interest-bearing liabilities less cash and cash equivalents. Net financial debt as of March
31, 2025, amounted to SEK 2,493 (-3,165) million. The net debt calculation include d external financing of
SEK 4,416 million (0), lease liabilities of SEK 253 (167) million, less SEK 2,176 (3,332) million in cash and cash equivalents.
The financial leverage ratio amounted to 0.82x based on the 12-month period EBITDA including Plarium.
Total net debt comprised interest-bearing liabilities of SEK 4,669 (167) million, earn-out liabilities of SEK 2,249 (1,680) million
and put/call options of SEK 322 (159) million, less cash and cash equivalents of SEK 2,176 (3,332) million. Total net debt as
at March 31 amounted to SEK 5,064 (-1,326) million. The leverage ratio amounted to 1.66x based on the 12-month period
EBITDA including Plarium.
(SEKm)
Q1
2025
Q1
2024
FY
2024
Cash flow from operations before
changes in tax and working capital 530 332 1,599
Taxes paid -214 -78 -522
Changes in working capital -140 39 264
Cash flow from operations 17 6 293 1, 3 4 0
Cash flow from investing activities -6,045 -45 -551
Cash flow from financing activities 4,685 - 10 -388
Total net change in cash and cash equivalents - 1, 18 4 240 401
Cash and cash equivalents at the beginning of the period 3,543 2,956 2,956
Translation differences in cash and cash equivalents -183 137 186
Cash and cash equivalents at end of the period 2 , 17 6 3,332 3,543
===== SIDA 11 =====
Q1 2025 Modern Times Group MTG AB 11
Parent company
Modern Times Group MTG AB is the group's parent company and is responsible for group-wide management, administration,
and financing.
Net interest and other financial items for the quarter amounted to SEK 144 (90) million. Net interest amounted to SEK 8 (24)
million. Unrealized and realized exchange rate differences amounted to SEK -13 (67) million and other financial items to
SEK -1 (-1) million.
The parent company had cash and cash equivalents of SEK 66 (1,774) million at the end of the period.
The total number of shares outstanding at the end of the period was 117,507,931 (121,681,404), excluding the 4,522,073
Class B shares and the 6,280,623 Class C shares held by MTG as treasury shares.
(SEKm)
Q1
2025
Q1
2024
FY
2024
Net sales 17 15 59
Net interest and other financial items 144 90 157
Income before tax and appropriations 77 55 -1
===== SIDA 12 =====
Q1 2025 Modern Times Group MTG AB 12
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 2024 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 202 4 Annual Report, which is available at
www.mtg.com.
Stockholm, 29 April 2025
Maria Redin
Group President & CEO, Modern Times Group MTG AB
===== SIDA 13 =====
Q1 2025 Modern Times Group MTG AB 13
Condensed consolidated income statement
Condensed statement of comprehensive income
(SEKm)
Q1
2025
Q1
2024
FY
2024
Continuing operations
Net sales 2,557 1,447 6,015
Cost of goods and services -775 -383 -1,554
Gross income 1, 7 8 3 1, 0 6 3 4,462
Selling expenses -1,051 -542 -2,302
Administrative expenses -460 -286 -1,275
Other operating income 29 7 37
Other operating expenses -11 -5 -21
EBIT 290 236 901
Net interest -19 33 129
Other financial items -67 -190 -847
I ncome before tax 205 80 18 2
Tax -140 -111 -392
Total net income for the period 65 -31 - 2 10
Net income for the period attributable to:
Equity holders of the parent 65 -31 -210
Non-controlling interest - - -
Net income for the period 65 -31 - 2 10
Basic earnings per share, SEK 0.55 -0.26 -1.74
Diluted earnings per share, SEK - -0.26 -1.74
Number of shares
Shares outstanding at the end of the period 117,507,931 121,681,404 118,306,464
Basic average number of shares outstanding 117,913,590 121,681,404 120,500,977
Diluted average number of shares outstanding - 122,257,218 121,137,914
(SEKm)
Q1
2025
Q1
2024
FY
2024
Net income 65 -31 -210
Other comprehensive income
Items that are or may be reclassified to profit or loss, net of tax:
Currency translation differences -1,095 512 592
Items that cannot be transferred to profit or loss, net of tax:
Fair value change of equity instruments -675 - -55
Total comp rehensive income - 1, 7 0 6 481 327
Total comprehensive income attributable to:
Equity holders of the parent -1,706 481 327
===== SIDA 14 =====
Q1 2025 Modern Times Group MTG AB 14
Condensed consolidated balance sheet
(SEKm)
Mar 31
2025
Mar 31
2024
Dec 31
2024
Non-current assets
Goodwill 11,480 10,277 10,383
Other intangible assets 6,520 2,097 1,761
Total intangib le assets 1 8,001 12 , 3 7 4 12 , 14 5
Total tangib le assets 14 6 36 28
Right of use assets 252 166 150
Shares and participations in associated and other companies 585 1,328 1,289
Other financial receivables 207 212 124
Total non-current financial assets 792 1, 5 4 0 1, 4 12
Total non-current assets 19 , 19 0 14 , 116 1 3,735
Current assets
Other receivables 1,396 697 790
Cash and cash equivalents 2,176 3,332 3,543
Total current assets 3,572 4,029 4,333
Total assets 22,762 18 , 14 5 18 , 0 6 8
Equity
Shareholders’ equity 11,932 14,208 13,736
Total equity 11, 9 3 2 14 , 2 0 8 1 3,736
Non-current liab ilities
Liabilities to financial institutions 4,299 - -
Lease liabilities 199 134 115
Total non-current interest-b earing liab ilities 4,499 13 4 115
Provisions 1,144 556 422
Contingent consideration 954 1,205 670
Other non-interest-bearing liabilities 177 180 184
Total non-current non-interest-b earing liab ilities 2,275 1, 9 4 2 1, 2 7 6
Total non-current liab ilities 6,774 2,0 76 1, 3 9 1
Current liab ilities
Contingent consideration 1,295 475 1,004
Liabilities to financial institutions 100 - -
Lease liabilities 54 33 36
Other interest-bearing liabilities 718 518 602
Other non-interest-bearing liabilities 1,888 835 1,300
Total current liab ilities 4,056 1, 8 6 2 2,941
Total liab ilities 1 0,830 3,937 4,332
Total shareholders’ equity and liab ilities 22,762 18 , 14 5 18 , 0 6 8
===== SIDA 15 =====
Q1 2025 Modern Times Group MTG AB 15
Condensed consolidated statement of cash flows
Condensed consolidated statement of changes in equity
(SEKm)
Q1
2025
Q1
2024
FY
2024
Income before tax 205 80 182
Adjustment for items not included in cash flow 325 253 1,417
Taxes paid -214 -78 -522
Changes in working capital -140 39 264
Cash flow from operations 17 6 293 1, 3 4 0
Investments/divestments in deposits - - 114
Acquisition / sale of subsidiaries, associates and other investments -6,003 -20 -46
Earnout payments - - -521
Investments in other non-current assets -41 -24 -98
Other cash flow from/used in investing activities - - -
Cash flow from investing activities -6,045 -45 -551
Repurchase of shares -110 - -304
Loan 4,807 - -
Share swap regarding share incentive programs - - -47
Other cash flow from/used in financing activities -12 -10 -38
Cash flow from financing activities 4,685 - 10 -388
Total net change in cash and cash equivalents - 1, 18 4 240 401
Cash and cash equivalents at the beginning of the period 3,543 2,956 2,956
Translation differences in cash and cash equivalents -183 137 186
Cash and cash equivalents at end of the period 2 , 17 6 3,332 3,543
(SEKm)
Mar 31
2025
Mar 31
2024
Dec 31
2024
Opening balance 1 3,735 13 , 7 14 13 , 7 14
Net income for the period 65 -31 -210
Other comprehensive income for the period -1,771 512 536
T otal comprehensive income for the period - 1, 7 0 6 481 327
Effect of employee share programs 13 12 45
Share swap regarding share-based incentive program - - -47
Repurchase of shares -110 - -304
Closing b alance 11, 9 3 2 14 , 2 0 8 1 3,736
===== SIDA 16 =====
Q1 2025 Modern Times Group MTG AB 16
Parent company condensed income statement
Net income for the period is in line with total comprehensive income for the parent company.
Parent company condensed balance sheet
(SEKm)
Q1
2025
Q1
20
24
FY
2024
Net sales 17 15 59
Gross income 17 15 59
Administrative expenses -84 -50 -217
Op erating income -67 -35 - 15 8
Net interest and other financial items 144 90 157
I ncome before tax and appropriations 77 55 -1
Appropriations 0 - -217
Net income for the period 77 55 - 2 18
(SEKm)
Mar 31
2025
Mar 31
20
24
Dec 31
2024
Non-current assets
Machinery and equipment 1 1 1
Shares and participations 15,231 13,821 13,821
Other financial receivables 9 4 14
Total non-current assets 15 , 2 4 1 1 3,827 1 3,839
Current assets
Current receivables 57 31 122
Cash and cash equivalents 66 1,774 1,344
Total current assets 12 4 1, 8 0 4 1, 4 6 6
Total assets 1 5,365 1 5,631 1 5,305
Shareholders ’ equity
Restricted equity 642 658 642
Non-restricted equity 14,322 14,916 14,343
Total equity 1 4,964 1 5,575 14 , 9 8 4
U ntaxed reserves - 9 -
Non-current liab ilities
Provisions 9 15 11
Total non-current liab ilities 9 15 11
Current liab ilities
Other interest-bearing liabilities - - -
Non-interest-bearing liabilities 392 33 307
Total current liab ilities 392 33 307
Total shareholders ’ equity and liab ilities 1 5,365 1 5,631 1 5,302
===== SIDA 17 =====
Q1 2025 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 and contingent considerations for which the valuation technique is
described below.
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.
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
2025
Dec 31
2024
Fair
value L evel 1 L evel 2 L evel 3¹
Fair
value L evel 1 L evel 2 L evel 3¹
Financial assets measured at fair value
Shares and participations in other companies 584 - - 584 1,287 - - 1,287
Financial liab ilities measured at fair value
Contingent consideration 2,249 - - 2,249 1,674 - - 1,674
1) The amount of unrealised gains/losses in profit or loss is included in the financial net.
(SEKm)
Mar 31
2025
Dec 31
2024
Opening balance 1 January 1, 2 8 7 397
Reported gains and losses in net income for the period 6 8
Reported gains and losses in OCI for the period -660 -105
Acquisition¹ 4 908
Translation differences in income -38 30
Translation differences in OCI -15 50
Loan converted to shares - -
Closing b alance 584 1, 2 8 7
1) Purchase price for Kongregate merging with Monumental during 2024 amount to SEK 889 million
(SEKm)
Mar 31
2025
Dec 31
2024
Opening balance 1 January 1, 6 7 4 1, 4 3 9
New acquisitions 651 66
Exercised payments, cash-based - -521
Exercised payments, share-based - -
Revaluation - 346
Interest expense 76 216
Translation differences -152 128
Closing b alance 2,249 1, 6 7 4
(SEKm) 2025 2026 2027 2028+ Total
Cash consideration 1,109 754 - 386 2,249
Total contingent consideration 1, 10 9 754 - 386 2,249
===== SIDA 18 =====
Q1 2025 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
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, revaluation of
put/call options and impairment of capitalized internal work. Items affecting comparability refer 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 this year, the group changed its definition of adjusted EBITDA. The new definition of adjusted
EBITDA also includes revaluation effects of put/call options.
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 overall SEK net sales on a comparable basis, allowing for
separate discussions of the impact of exchange rates, acquisitions, and divest ments. The following table presents changes
in organic sales growth as reconciled to the change in total reported net sales.
(SEKm)
Q1
2025
Q1
20
24
FY
2024
EBIT 290 236 901
Amortization 275 126 516
Depreciation 29 15 59
EBITDA 594 377 1, 4 7 6
Items affecting comparability - - 0
Impairment own capitalized costs - - 8
Non-recurring bonus structures 7 14 24
M&A transaction costs and revaluation of put/call options 14 5 158
Adjuste d EBITDA 61 6 396 1 ,666
(SEKm)
Q1
2025
Q1
20
24
FY
2024
Group
Organic growth 6% 4% -1%
Acquisition/divestments 73% 7% 4%
Changes in FX rates -3% 1% 0%
Reported growth 77% 11% 3%
===== SIDA 19 =====
Q1 2025 Modern Times Group MTG AB 19
Business combinations
Acquisitions in 2025
On November 11, 2024, Modern Times Group MTG AB (publ) ("MTG") signed an agreement to acquire 100% of the shares
in Plarium Global Ltd ("Plarium"), a leading international game developer with a strong portfolio of successful games, including
the popular mobile role-playing game RAID: Shadow Legends. The acquisition strengthens MTG's position in the mid-core
mobile games segment and adds f urther expertise in live ops, monetization and marketing. The acquisition was completed
on February 12, 2025. The total purchase price amounts to USD 659 million, of which USD 20 million will be paid as a deferred
payment in 2026, initially valued at USD 20 million. In addition, the agreement includes performance-based earnouts of up to
USD 200 million, based on future revenues, initially valued at USD 32 million. The acquisition is financed through a
combination of existing cash and cash equivalents and secured external financing comprising a term loan with a maturity of
3+1 years, as well as a revolving credit facility, totaling USD 460 million.
Preliminary purchase price allocations for the year
Refers to acquisitions completed during the first quarter of 2025.
Goodwill arising from the acquisition is mainly attributed to Plarium's future revenue generating capacity, expertise in game
development and synergies within MTG's existing operations. None of the goodwill recognized is expected to be tax
deductible. The amounts recognized for intangible assets, such as IP, direct -to-consumer platform and paying player
relationships, have been measured at the discounted value of future cash flows. The amortization periods for the identified
assets reflect the determinable useful lives. The impact of the business combination on the group's cash and cash equivalents
amounted to SEK 5,988 million. Estimated transaction costs for the acquisition amounted to SEK 109 million.
(SEKm) Plarium
Intangible fixed assets 5,525
Other fixed assets 279
Other current assets 656
Cash and cash equivalents 632
Deferred tax receivables/liabilities net -780
Other liabilities -1,085
Acquired net assets 5,227
Goodwill 1,948
Purchase price including other non-paid considerations 7,1 75
Less cash and cash equivalents in acquried operation -632
Additional purchase price and other settlements, non-paid -555
Effect on consolidated cash and cash equivalents 5,988
Cash flow from business combination
Cash payment -6,620
Acquired cash and cash equivalents 632
Total effect on cash flow from investing activities -5,988
Estimated transaction costs for acquisition (included in operating activities) -109
Net outflow cash and cash equivalent -6,097
===== SIDA 20 =====
Q1 2025 Modern Times Group MTG AB 20
Effect of acquisition on the group´s results
The acquisition of Plarium was completed on February 12, 2025. The closing balance is based on the accounts as of January
31 and Plarium has been consolidated in MTG's accounts from this date.
(SEKm)
Sales 1,065
Income before tax¹ 118
1) Income before tax includes amortization of purchase price allocations of SEK -133 million
Effect of acquisition on the consolidated statement of Profit and L oss and Other Comprehensive Income
Group sales and income before taxes if the acquisition had occurred 1 January 2025
(SEKm)
Sales 3,081
Income before tax¹ 171
1) Income before tax includes amortization of purchase price allocations of SEK -315 million
===== SIDA 21 =====
Q1 2025 Modern Times Group MTG AB 21
Events after the end of the period
There were no other events after the end of the reporting period.
===== SIDA 22 =====
Q1 2025 Modern Times Group MTG AB 22
Definitions
Adj usted E B I TDA
EBITDA, adjusted for the effects of items affecting comparability, long- term incentive programs, acquisition- related transaction costs ,
revaluations of put/call options and impairment of own work capitalized, which are referred to as adjustments.
ARPDAU
Average net revenue per daily active user.
Cap ital e xp e nd iture s (C APEX)
Capital expenditures is a financial investment made with the expectation of future revenues.
Cash conversion
Cash flow from operating activities including investments less realized exchange rate effects, as a percentage of adjusted EBITDA.
Cash flow from operations
Cash flow from operating activities shows changes in working capital including profit for the year adjusted for profit and loss items that have
not affected changes in cash flow.
DAU
Daily active user.
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/ Op e rating 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.
IAA
In app advertising.
IAP
In app purchases.
Interest -b e aring liab ilitie s
Interest-bearing liabilities include external financing and lease liabilities.
Ite ms affe cting comp arab ility (IAC)
Items affecting comparability refers to material items and events related to changes in the group’s structure or lines of bus iness, which are
relevant for understanding the group’s development on a comparable basis.
MAU
Monthly active user.
Net financial debt
Net financial debt refers to the sum of interest-bearing liabilities, less cash and cash equivalents.
Net debt
Net debt refers to the sum of interest-bearing liabilities, earn-out liabilities and put/call option liabilities less cash and cash equivalents.
Organic growth
The change in net sales compared with the same period last year, excluding acquisitions and divestments and adjusted for currency effects.
RO AS
Return on ad spend.
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 com pany’s and/or the
group’s functional currency.
UA
User acquisition.
===== SIDA 23 =====
Q1 2025 Modern Times Group MTG AB 23
Shareholder information
MTG’s Annual General Meeting 2025
The Annual General Meeting will be held on 15 May 2025 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
Annual General Meeting 2025 15 May 2025
Q2 & Half Year 2025 Financial Results report 18 July 2025
Q3 & 9 Months 2025 Financial Results report
Please note that this is the new date for the Q3 report 13 November 2025
Questions?
Anton Gourman, VP Communications
Direct: +46 73 661 8488, anton.gourman@mtg.com
Follow us: mtg.com / LinkedIn
Conference call
MTG will host a livestream and conference call at 10.00 CET today, on 29 April 2025. The call will be held in English.
How to join:
• To participate via livestream, please use this link.
• To join via phone, please register usin g 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 24 =====
Q1 2025 Modern Times Group MTG AB 24
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 CET on April 29, 2025.
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.