Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Q1 2024 Earnings Presentation
12 slides from Modern Times Group Mtg Ab Class A's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024
April 24, 2024 Q1 2024 Maria Redin, CEO Nils Mösko, CFO
Slide 2: Revenues up 11% and 7% pro forma growth, strong operating margin of 27%
CONFERENCE CALL Q1 2024 Revenues up 11% and 7% pro forma growth, strong operating margin of 27% Net sales Adjusted Adjusted Cash flow from EBITDA EBITDA margin operations 1,447 SEKm 396 SEKm 27% SEK 293m 11% reported YoY growth 51% YoY reported growth in Q1 Strong margin performance Cash conversion
Slide 3: MTG provides 2024 outlook
MTG provides 2024 outlook Comments • The market is expected to grow low to mid-single digits during 2024 according to Newzoo, which is in line with our own Reported sales observations growth (currency adjusted) 1 – 5% • We are evaluating the effects of Google’s changes to the ad bidding system and u
Slide 4: 11% sales growth and all time high LTM Revenues
CONFERENCE CALL Q1 2024 11% sales growth and all time high LTM Revenues Reported revenue1, SEKm Reported revenue1, SEKm LTM YoY Sales growth YoY Organic growth YoY Pro forma -4% 6% 6% 13% 11% -11% -2% 1% 3% 4% 5,829 5,970 CAGR2 5,646 +2% 7% 7% 5,537 5,485 5,564 5,421 +21% 5,090 1,571 1,494 1,458 1,4
Slide 5: Sales growth driven by Word Games and Strategy & Simulation franchise
CONFERENCE CALL Q1 2024 Sales growth driven by Word Games and Strategy & Simulation franchise Revenue by franchise, SEKm Other smaller franchises Strategy & Simulation Racing Word Games Sequential growth at constant YoY growth at constant currencies currencies Tower Defense 1,571 1,459 1,494 117 1,4
Slide 6: Executing on our pipeline
CONFERENCE CALL Q1 2024 Executing on our pipeline Early phase /scaling games H1 2024 H2 2024 2025+ Revamp of Rise of Cultures TBD TBD Forza NASCAR TDB Customs Manager Bloons TD BTD6 BTD6+ BTD6 Bloons BTD6 TBD TBD Battles 2 Xbox Vision Pro PlayStation Card Storm Switch Crossword Word Search Localizat
Slide 7: Strategy & Simulation and Word Games drive ARPDAU growth
CONFERENCE CALL Q1 2024 Strategy & Simulation and Word Games drive ARPDAU growth Revenue streams User development IAP IAA Third party publication platforms (Other) DAU ARPDAU millions SEK % 7.0 70 66% 7.0 6.5 6.7 6.6 5.0 6.4 6.5 6.4 6.4 6.5 6.5 65 63% 63% 6.5 61% 60% 61% 59% 59% 4.5 60 58% 58% 6.0 5
Slide 8: Lower UA spend while we work on new titles and localization in Word Games
CONFERENCE CALL Q1 2024 Lower UA spend while we work on new titles and localization in Word Games franchise UA spend development Comments UA spend, SEKm • Maintained prudent approach to UA 600 spend focused on healthy ROAS 576 559 563 levels and UA down 2% YOY 554 537 527 500 499 • Change in UA main
Slide 9: Strong adjusted EBITDA of SEK 396m and 27% margin and all time high
CONFERENCE CALL Q1 2024 Strong adjusted EBITDA of SEK 396m and 27% margin and all time high adjusted EBITDA on rolling 12-month basis Reported adj. EBITDA1, SEKm Reported adj. EBITDA1, SEKm LTM Adj. EBITDA margin Adj. EBITDA – CAPEX margin 20% 27% 30% 28% 27% 15% 23% 27% 25% 26% +51% CAGR2 +30% 449
Slide 10: Continued strong cash generation with cash conversion at 62% on LTM
CONFERENCE CALL Q1 2024 Continued strong cash generation with cash conversion at 62% on LTM Group cash flow statement, SEKm Balance sheet, SEKbn Q1’24 LTM Q1’24 Cash flow from operations1 335 1,594 Taxes paid -78 -430 Changes in working capital 39 60 3.3 1.7 CAPEX -24 -174 Free cash flow 272 1,050 A
Slide 11: Starting the year
CONFERENCE CALL Q1 2024 Starting the year Conclusion • Strong start to the year with 11% net sales and 7% pro forma sales driven by PlaySimple, InnoGames and Snowprint • We report +51% increase in adj. EBITDA YoY with a margin of 27% • Cash conversion LTM of 62% LTM • Exciting pipeline of new games
Slide 12: Q&A
Q&A Bloons TD 6
Modern Times Group MTG — Q1 2024 Earnings Presentation on 6ix