Q3 2025 MAG Interactive AB (publ) Earnings Call Transcript
Key Points
- Crozzle, a new game, has quickly become the third biggest game in MAG Interactive AB (OSTO:MAGI)'s portfolio, showing strong momentum and potential to become the second biggest by the end of Q4.
- The average revenue per daily active user (ARPDAU) increased by 14% year-over-year, driven primarily by improvements in QuizDuel.
- MAG Interactive AB (OSTO:MAGI) has a promising pipeline of new games, with two more games set to be tested in Q4, enhancing their growth prospects.
- The company is leveraging a modular platform for game development, which accelerates the pace of bringing new games to market and allows for early revenue generation.
- MAG Interactive AB (OSTO:MAGI) maintains a healthy cash flow, ending the quarter with SEK94 million in the bank, providing a strong financial foundation for future investments.
- Net sales decreased by 10% year-over-year, impacted by currency fluctuations and the divestment of Primetime.
- Daily active users (DAU) have declined year-over-year, indicating potential challenges in user retention or acquisition.
- The company faces pressure on profit margins due to increased user acquisition costs, which are recognized immediately while payback occurs over a longer period.
- Ad revenue has been weak, correlating with a decrease in DAU, and there is no conscious shift towards higher in-app purchases.
- The company has not disclosed the exact split between ad revenue and in-app purchases for Crozzle, citing competitive sensitivity, which may limit transparency for investors.
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Hello, and welcome to the presentation of MAG's Q3 report. So here today and present is me, I'm Daniel Hasselberg, I'm the CEO of MAG.
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And Magnus Wiklander, CFO of MAG.
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So this is a bit of a special quarter as a lot of the exciting stuff actually happened in June, so starting of Q4 rather than during Q3. So we're going to talk about both the quarter obviously, but also some of the events that happened in the last few weeks. So highlights from the report. The -- when we talk about Crozzle in the Q2 report, we said, okay, we're leaving soft launch now and it's time to go and scale up the game, which for us means gradually increasing UA and as we see data come in, double down when
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