MAG Interactive (MAGI) Q4 2024 earnings summary

Executive summary

• Q4 2023/24 delivered stable profitability and sequential performance, with a focus on live game portfolio and new launches like Crozzle, which remains in soft launch with ongoing optimization for global rollout.

• Net sales for FY 2023/24 were 283,432 KSEK, down 22% year-over-year, with Q4 sales at 66,484 KSEK, down 17% from last year.

• Adjusted EBITDA for the year rose 45% to 75,837 KSEK, with Q4 margin at 28%, and cash position at 122 MSEK.

• User base stabilized at 1.1 million DAU and 2.9 million MAU, both down double digits year-over-year.

• Focus remains on profitability, careful UA spending, and gradual, data-driven global launches for new titles.

Financial highlights

• Q4 net sales reached 66 MSEK, with adjusted EBITDA at 18,829 KSEK and a 28% margin.

• FY net sales fell 22% to 283,432 KSEK; adjusted EBITDA rose to 75,837 KSEK.

• Free cash flow for Q4 was 9,689 KSEK; cash and cash equivalents at year-end were 121,835 KSEK.

• User acquisition costs dropped 68% year-over-year to 40,632 KSEK.

• Growth games (QuizDuel, Wordzee) maintained flat revenues quarter-over-quarter, with exchange rates as the main variable.

Outlook and guidance

• Plans to increase UA spend as game performance improves, with QuizDuel and Wordzee likely to drive near-term UA investment.

• Global launch of Crozzle planned once UA payback criteria are met, with further localization for Europe.

• Continued investment in modular game platform to drive operational efficiency and future growth.