MAG Interactive AB (publ) publishes Interim and Year-End Report September - August 2023/2024

Summary of the period June - August 2024:

• Adjusted EBITDA for the period was 18,829 KSEK (23,713 KSEK), a decrease of 4,885 KSEK
• The Group's Net sales for the period was 66,484 KSEK (80,095 KSEK), a decrease of 17%
• The Group's game contribution for the period was 47,120 KSEK (53,942 KSEK), a decrease of 13%
• Average revenue per daily active user (ARPDAU) for the period was 6.5 US cents (7.0 US cents), a decrease of 6%
• Earnings per share during the quarter was 0.05 SEK/share (0.25 SEK/share)
• Adjusted earnings per share during the quarter was 0.13 SEK/share (0.29 SEK/share)
• The cost of user acquisition for the quarter was 8,858 KSEK (14,995 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.1 million and 2.7 million respectively during the quarter, a decrease of 10% and 16%

Comment from the CEO in summary

"We are pleased to report yet another profitable quarter with continued strong cash generation. As expected during the summer period, we saw a slight drop in revenues compared to Q3; however, this year's decline was less than in a typical year. An increase of in-app revenues between Q3 and Q4 compensated for some, though not all, of this year's seasonal CPM (cost per mille) drop that negatively impacts advertising revenues. The uplift in in-app revenues is thanks to significant updates in QuizDuel and Wordzee, with the new Card King feature in QuizDuel being a standout highlight. 

"Overall revenues in Q4 decreased 5% relative to Q3, coming in at 66 MSEK. The decline in revenues by 17% compared to the previous year is directly related to lower user acquisition (UA) investments throughout this financial year. We recognize the need to increase UA volumes to return to a growth trajectory and are actively focusing on this area.

"As previously communicated, we have reduced our office space and are actively managing costs overall to optimize our cash generation. Our cash position improved to 122 MSEK, while EBITDA stood at 19 MSEK, resulting in a healthy EBITDA margin of 28%. Free cash flow in the quarter was 10 MSEK.

"Being profitable and debt-free means we are in control, have limited business risk, and are confident in investing in our future potential.

"The soft launch of our new crossword game, Crozzle, continues to develop well. As we still see optimization opportunities from numerous A/B tests throughout the quarter, we aim to implement these improvements before the global launch. We are diligently working towards achieving a full UA investment payback within 180 days, which is our ultimate trigger for a global launch.

"Our aim is to globally launch Crozzle in the coming months, provided we meet our UA investment payback criteria. Thanks to our new platform, we also see opportunities to unlock UA volumes for other games in the portfolio during the year and return to a growth path.

"Finally, I want to thank all employees and shareholders of MAG for your continued support and confidence in our exciting future," says Daniel Hasselberg, CEO at MAG Interactive. 

Summary of the period September 2023 - August 2024 (12 months):

• Adjusted EBITDA for the period was 75,837 KSEK (52,381 KSEK), an increase of 23,455 KSEK
• The Group's Net sales for the period was 283,432 KSEK (362,182 KSEK), a decrease of 22%*
• The Group's game contribution for the period was 203,605 KSEK (187,472 KSEK), an increase of 9%
• Average revenue per daily active user (ARPDAU) for the period was 6.5 US cents (7.4 US cents), a decrease of 12%
• Earnings per share during the period was -0.12 SEK/share (0.02 SEK/share)
• Adjusted earnings per share during the period was 0.90 SEK/share (-0.14 SEK/share)
• The cost of user acquisition for the period was 40,632 KSEK (126,472 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.1 million and 2.9 million respectively during the period, a decrease of 11% and 16%

*An adjustment - that had no impact on EBIT or EBITDA - has been made for net revenue and cost of sales concerning previous quarters. It is presented in the Interim Report, note 7.

Presentation & Report
On October 23, 2024 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, formally known as Twitter, during the course of the day, write to @d_hasselbergor @maginteractive.For more information and to read the full report please visit https://www.maginteractive.com/investors/investor-relations/reports/.
This is information that MAG Interactive 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 below, at 08:00 on October 23, 2024.