MAG Interactive (MAGI) Q3 2024 earnings summary

Executive summary

• Q3 2023/24 saw continued profitability with a 26% EBITDA margin, stable daily active users, and a cash-generative business, despite a 20% year-over-year drop in net sales to 70.7 MSEK.

• Core games Wordzee and QuizDuel maintained strong momentum and engagement, while Crozzle's soft launch delivered strong retention and positive early metrics.

• Over 350 million downloads across the portfolio, reflecting broad user engagement.

• Modular development strategy and use of AI are being implemented to accelerate new game launches and improve productivity.

Financial highlights

• Q3 net sales: 70,731 KSEK (down 20% year-over-year); adjusted EBITDA: 18,185 KSEK with a 26% margin; cash and cash equivalents at period end: 116 MSEK.

• Free cash flow in Q3: 7,526 KSEK (up from 3,914 KSEK); profit margins have returned to pre-2023 levels.

• Q3 earnings per share: 0.13 SEK (down from 0.31 SEK); 9-month EPS: -0.18 SEK (improved from -0.23 SEK).

Outlook and guidance

• Focus remains on scaling Crozzle to a global launch, improving QuizDuel and Wordzee, and gradually increasing user acquisition investments.

• Management expects summer seasonality to impact player activity but anticipates stable and profitable development due to strong momentum in core games.

• Ongoing efforts to improve ARPDAU and LTV to unlock higher user acquisition volumes.