MAG Interactive (MAGI) Q2 2025 earnings summary

Executive summary

• Q2 covered December, January, and February, with December being the strongest revenue month of 2024, followed by weaker January and February revenues but positive momentum in other areas.

• Crozzle officially launched after a year-long soft launch, showing strong KPIs and the highest ARPDAU among all games.

• Portfolio now features three growth games, with three additional games in market testing, enabled by a new, faster game development platform.

• Achieved over 350 million downloads, reflecting strong global reach and engagement.

• Net sales for Q2 2024/25 were 67,035 KSEK, down 5% year-over-year; adjusted net sales decreased 3% to 66,549 KSEK, reflecting the divestment of Primetime.

Financial highlights

• Net sales for Q2 were 67 MSEK, stable year-over-year when adjusted for Primetime divestment.

• Adjusted EBITDA margin was 27%, with adjusted EBITDA for the quarter at 18,112 KSEK, down 15% year-over-year.

• Cash balance at quarter-end was just under SEK 100 million, supporting ongoing operations and investments.

• Dividend of 1 SEK per share (26.5 MSEK total) was paid in January 2025.

• Free cash flow for the quarter was 6,695 KSEK, compared to -14,327 KSEK last year.

Outlook and guidance

• Scaling up user acquisition for Crozzle in the US and English-speaking markets, with gradual localization for other regions.

• Expectation for new games to peak at SEK 100 million annual revenue and at least SEK 500 million in lifetime revenue.

• Management anticipates a growth period ahead, driven by a faster new games pipeline and gradual scale-up of launches.

• Anticipates short-term margin pressure from increased UA spend, with long-term revenue growth as a result.

• No budget caps on UA; investment will scale as long as profitability is maintained.