MAG Interactive AB (publ) publishes Interim Report September – November 2022/2023
MAG reached its highest quarterly revenues yet; net sales grew by 39% to 97 MSEK and ARPDAU increased 38% compared to the same quarter the previous year. Investments in User Acquisition grew to a record 51 MSEK.
Summary of the period September 2022 – November 2022:
- The Group's net sales for the period were 97,327 KSEK (69,838 KSEK), an increase of 39% compared to the same period the previous year
- EBITDA for the period was 3 KSEK (17,133 KSEK)
- Adjusted EBITDA for the period was 209 KSEK (16,343 KSEK) (adjustment of EBITDA for the period relates to social contribution costs from revaluation of option programs)
- The Group's game contribution for the period was 33,136 KSEK (47,819 KSEK), a decrease of 31% compared to the same period the previous year
- Average revenue per daily active user (ARPDAU) for the period was 7.8 US cents (5.7 US cents), an increase of 38% compared to the same period the previous year
- The result per share during the quarter was -0.42 SEK/share (0.14 SEK/share)
- The cost of user acquisition for the period was 51,154 KSEK (14,541 KSEK)
- Daily and monthly active users (DAU and MAU) were 1.2 million and 3.5 million respectively during the quarter, a decrease of 19% and 30% compared to the same period the previous year
Comment from the CEO in summary
“We are starting off our new financial year with a 39% year-over-year revenue growth, reaching 97 MSEK in the first quarter. This is the highest quarterly revenue in company history, and we attribute that to a combination of stable operations of live games and successful investments in User Acquisition (UA). We also see a positive impact of the strengthened USD relative to the Swedish Krona compared to last year. Our average revenue per daily active user (ARPDAU) increased by 38% compared to the previous year and reached 7.8 US cents.
“The UA investment in Q1 grew to 51 MSEK, reaching its highest level ever in a single quarter, the majority of which was targeted to Wordzee. As always we are diligent in our steering towards reasonable payback times and never compromise on the profitability of our UA campaigns.
“Wordzee continues to beat our expectations, delivering another record quarter in terms of revenues. Continued product improvements combined with successful investments in UA is the key to this quarter’s revenue record and to Wordzee’s continued growth.
“Tile Mansion has increased its daily active user base (DAU) and revenues in Q1, compared to its launch quarter in Q4. In Q2 we are opening up more markets to the game as the results from early iterations in English-speaking markets in Q1 look positive. We are still in the early stages of Tile Mansion’s development, and we expect the game to be able to continue to grow in the coming quarters.
“Relative to the previous quarter, the DAU remained fairly stable (-5%). An effect of higher quality users entering our games can also be seen in the increase of in-app purchase (IAP) revenue relative to the same period last year. The IAP revenue increased by 75% showing that our players’ propensity to spend has grown quite significantly compared to the previous year.
“A big thanks to the teams at MAG for delivering another strong quarter and also thanks for the continued support from our shareholders in our mission to build an even better and stronger company for the future,” says Daniel Hasselberg, CEO at MAG Interactive.
Presentation & Report
On January 18, 2023 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 Twitter during the course of the day, write to @d_hasselberg or @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 January 18, 2023.