MAG Interactive AB (publ) publishes Interim and Year-End Report September – August 2021/2022

MAG shows continued growth in Q4; net sales grew by 29% to 90 MSEK, and ARPDAU increased by 36% compared to the same quarter last year.

Summary of the period June 2022 – August 2022:

• The Group's net sales for the period were 90,001 KSEK (69,647 KSEK), an increase of 29% compared to the same period the previous year
• The Group’s other operating income was 34,120 KSEK (734 KSEK) and includes a write-down of the earn-out to Sventertainment AB (Primetime) of 32,250 KSEK
• EBITDA for the period was 37,055 KSEK (21,743 KSEK)
• Adjusted EBITDA for the period was 4,719 KSEK (22,987 KSEK). Adjustments are primarily related to the amortization of earn-out in conjunction with the acquisition of Sventertainment AB (Primetime)
• The Group's game contribution for the period was 34,894 KSEK (47,923 KSEK), a decrease of 27% compared to the same period the previous year
• Average revenue per daily active user (ARPDAU) for the period was 7.3 US cents (5.4 US cents), an increase of 36% compared to the same period the previous year
• The result per share during the quarter was −0.38 SEK/share (0.30 SEK/share)
• The cost of user acquisition for the period was 43,298 KSEK (15,026 KSEK)
• Daily and monthly active users (DAU and MAU) were 1.3 million and 3.8 million respectively during the quarter, a decrease of 21% and 30% compared to the same period the previous year

Comment from the CEO in summary

“We are finishing off a financial year that saw us reach record revenues of 328 MSEK while also being profitable on a yearly basis. Our financial goals are to grow faster than the industry average and to work towards an EBIT margin of at least 20%. This financial year was another step in that direction with a 14% revenue growth and a full year of profitability.

“During Q4 we generated an organic revenue growth of 29% on the back of high-performing User Acquisition (UA) combined with a favorable exchange rate to the USD compared to last year. The UA investment grew to 43 MSEK, reaching its highest level in several years.

“The growth games segment developed well; Wordzee beat even our own high expectations in Q4. It saw record quarterly revenues as well as entered top ten grossing word games in the U.S. for the first time. The coming year will likely be the best since launch given the start of Q1. We have a great team working on the game, and we continue to see UA at a high pace going into Q1.

“For QuizDuel, Q4 is a seasonally weak quarter but the game performed significantly better than the same quarter last year. We continue to have high ambitions regarding the future of QuizDuel and look forward to running an even higher event frequency during the coming year.

“We are happy with the returns we see from our UA investments in Q4 and will continue to double down on the opportunities we see in the market. The combination of continued product development wins for Wordzee and Tile Mansion with possibly weakening competition due to the current financial cool down appears to be a favorable combination for us. The window for growth based on UA seems more open for us than it has been in a very long time, and we are ready to take advantage of that,” says Daniel Hasselberg, CEO at MAG Interactive.

Summary of the period September 2021 – August 2022 (12 months):

• The Group's net sales for the period were 327,774 KSEK (286,584 KSEK), an increase of 14% compared to the same period the previous year. The period's net sales include 14,706 KSEK relating to a transfer bonus from Applovin. Adjusted net sales are 313,068 KSEK
• The Group’s other operating income was 37,811 KSEK (3,373 KSEK) and includes a write-down of the earn-out to Sventertainment of 32,250 KSEK
• EBITDA for the period was 101,360 KSEK (56,617 KSEK)
• Adjusted EBITDA for the period was 53,232 KSEK (57,675 KSEK) (adjustments relate to effects from transfer bonus revenue, write down of earn-out, acquisition costs and social contribution costs from revaluation of option programs)
• The Group's game contribution for the period was 182,627 KSEK (177,350 KSEK), an increase of 3% compared to the same period the previous year
• The result per share during the period was 0.43 SEK/share (0.27 SEK/share)
• The Board proposes that no dividend is to be paid for the financial year

Presentation & Report
On October 19, 2022 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 October 19, 2022.