Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q3 2024 Earnings Presentation
12 slides from Modern Times Group Mtg Ab Class A's earnings presentation, Oct 24, 2024
Slide 1: Q3 2024 Conference Call
Mo October 24, 2024 Q3 2024 Maria Redin, CEO
Slide 2: Transitional Q3 sets us up to deliver organic growth in Q4
CONFERENCE CALL Q3 2024 Transitional Q3 sets us up to deliver organic growth in Q4 Net sales Net sales down -4% YoY and down -2% in constant currencies Net sales up by 1% for the first nine months Adjusted EBITDA Adj. EBITDA down -13% YoY 9% increase YoY for the first nine months Adjusted EBITDA mar
Slide 3: We remain confident in our reiterated full year outlook
CONFERENCE CALL Q3 2024 We remain confident in our reiterated full year outlook Comments Reported sales growth (currency adjusted) Adjusted EBITDA margin 1-5% 26 - 29% Increased investments in UA in Q3 paves way for future growth Solid momentum in localized word games Positive early indicators from
Slide 4: Revenues down by -2% in constant currencies YoY but up 1% sequentially
CONFERENCE CALL Q3 2024 Mo Revenues down by -2% in constant currencies YoY but up 1% sequentially from Q2 in constant FX Reported revenue’, SEKm Reported revenue!, SEKm LTM © YoY Sales growth « YoY Organic growth { ) Reported at constant FX @@®OOO@ 5,970 5,829 5,949 5,893 we 5,537 5,485 5,564 5,646)
Slide 5: We are set for organic growth in Q4 thanks to improving momentum
CONFERENCE CALL Q3 2024 Meo We are set for organic growth in Q4 thanks to improving momentum in our portfolio Revenue by franchise, SEKm ©) Other smaller franchises [I] Word Games i Sequential YoYdevele Il Recing celenoae "oe stant rence Ill Tower Defense ‘conor “cence Strategy & Simulation 1,571 1,
Slide 6: New games now represent 16% of group revenues
CONFERENCE CALL Q3 2024 Meo New games now represent 16% of group revenues Soft launch and/or early phase scaling Upcoming projects 40K Tacticus Company presentation | Modern Times Group MTG AB 6
Slide 7: Localization of successful word games drive DAU growth
CONFERENCE CALL Q3 2024 Localization of successful word games drive DAU growth Revenue streams User development — IAP — Third party publication platforms (Other) — IAA % 65 7 68%63% Gre, got 61% 62% 1% 59% 94 59% 60 58% 58% 35% % 36% 35% 35 32% 33% 3s 30 | 8% 60, 28% 33% = 32% 18 710% 1% 1% 7% 6% 8%
Slide 8: UA up 17% in constant FX from Q2 as we see improving momentum
CONFERENCE CALL Q3 2024 Mo UA up 17% in constant FX from Q2 as we see improving momentum UA spend development Comments — — 1) UA spend, SEKm * 38% of revenues spent on user acquisition, LTM 36% + UAspend up significantly from Q2 600 + We maintain ROAS discipline as we begin scaling up UA Q3'22 Q4'22
Slide 9: Strong margin of 27% despite accelerated UA and new game launches
CONFERENCE CALL Q3 2024 Mo Strong margin of 27% despite accelerated UA and new game launches Reported adj. EBITDA’, SEKm Reported adj. EBITDA', SEKm LTM — — Adj. EBITDA margin Adj. EBITDA — CAPEX margin O Mai 9 i 3% Q@B@H 2 2 3% 775 74 162 694 698 605 583 579 Q419Q1'20Q2'20Q3'2004'20 G1'21 Q2'21 Q3'
Slide 10: Healthy cash flows, cash conversion of 70% and strong balance sheet
CONFERENCE CALL Q3 2024 Healthy cash flows, cash conversion of 70% and strong balance sheet Group cash flow statement, SEKm Balance sheet, SEKbn — — Q3'24_LTM Q3’24 Cash flow from operations! 420 1,635 Taxes paid -158 -491 Changes in working capital? 84 113 3.2 1.4 CAPEX -12 101 Free cash flow 334 1
Slide 11: We continue building for the future and remain confident in our outlook
co NFERENCE CALL Q3 2024 Mo We continue building for the future and remain confident in our outlook Conclusion and outlook Sales up 1% sequentially in constant FX and 27% adjusted EBITDA margin with strong cash conversion UA up 17% in constant FX from Q2 as we see improved ability to invest in profi
Slide 12: Q&A
Modern Times Group MTG — Q3 2024 Earnings Presentation on 6ix