MAG Interactive generated 67 MSEK in net sales in Q2, a decrease of 5% compared to the same quarter last year. Crozzle user acquisition scales up as it grows into MAG's established portfolio.
Summary of the period December 2024 - February 2025:
Comment from the CEO in summary
"Revenues for the quarter were 67 MSEK, and the adjusted EBITDA margin was 27%. Adjusted for the divestment of Primetime that took effect from January 1st, our revenues were down 3% compared to the same period last year. December performed well, but it was followed by a weaker-than-expected January and February period, mainly due to lower advertising revenues. We are pleased to see that the advertising performance is picking up again in the beginning of Q3. Worth noting is that the USD worked in our favor in Q2, being 6% stronger on average than last year.
"The user acquisition (UA) investments in Q2 increased to 12 MSEK, compared to 8 MSEK during the same period last year. This is a step in the right direction, partly thanks to increasing UA towards Crozzle, and we are positioned to scale further. Thanks to our strong financial position we have plenty of room to invest in UA toward both current and coming games to support future growth.
"The Crozzle soft launch development has been a journey from a crossword puzzle with a decoration meta to its current shape; a more classic multiplayer game closer in format to our other hit games Ruzzle, Word Domination and Wordzee. The multiplayer game format with challenges and re-matches lays the foundation for an engaging player experience that can make players continue coming back for years. We consider Crozzle to be an established game in our portfolio from this point and onward.
"Our strong belief in Crozzle is based on the fact that we see players engaging on average about an hour per day, a strong retention profile, and it shows the highest average revenue per daily user (ARPDAU) of all our games.
"Considering the changing dynamics in the UA market over the last couple of years, we believe that a gradual scale-up is a better way to go with Crozzle, as well as all future game releases, rather than an immediate and large volume global launch. Going forward we expect to take new games to market at a higher pace and will shift to this smoother transition from soft launch to an established game.
"We are gearing up for what we believe will be the start of a growth period for both the game and the company. The scale up of Crozzle will mean increased investments in UA in the US market as well as a roll out into our other main markets over the next quarters, as the game gets localized to more languages. Germany, France and Sweden are on the short list after the main English-speaking markets.
"With a strong financial position, a proven UA strategy, and an accelerating game pipeline, we are more confident than ever in MAG's growth trajectory.
"Finally, I would like to thank all employees and shareholders in MAG for your continued support for our mission to bring joy and entertainment to millions of people around the world," says Daniel Hasselberg, CEO at MAG Interactive.
Summary of the period September 2024 - February 2025 (6 months):
Presentation & Report
On April 2, 2025 at 10:00 CET, CEO Daniel Hasselberg and CFO Magnus Wiklander will present the Interim Report live on Twitch. The presentation will be held in English. Link to the Twitch feed: www.twitch.com/maginteractive. Daniel Hasselberg will also take questions on the social media platform X during the course of the day, write to @d_hasselberg or @maginteractive. For more information and to read the full report please visit https://www.maginteractive.com/investors/investor-relations/reports/.
This disclosure contains information that MAG Interactive is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on "Innehållet inom klamrarna kommer ersättas med rätt tid och datum vid utskickstillfället">02-04-2025 08:00 CET.