Q2 2025 Modern Times Group MTG AB Earnings Call Transcript
Key Points
- Modern Times Group MTG AB (LTS:0GXJ) reported a doubling of total revenues year over year, driven by the acquisition of Plarium and strong organic growth.
- The company achieved an organic growth rate of 9% in Q2 and 8% for the first half of 2025, supported by both casual and midcore games.
- Adjusted EBITDA for Q2 was SEK640 million, representing a 50% increase year over year, primarily due to the consolidation of Plarium.
- The company reported a healthy operating margin of 22% in Q2, despite increased user acquisition spending.
- Strong performance in key gaming franchises, with significant growth in word games and the successful scaling of new titles like Jigsaw and Tile Match.
- Operating margins were down from the elevated levels of the previous year due to increased user acquisition spending.
- The significant weakening of the dollar and strengthening of the SEK resulted in a material negative currency impact of 14% in Q2.
- Plarium's revenues were down in single digits on a like-for-like basis in constant currencies, with some games underperforming.
- Cash conversion levels were lower due to higher M&A costs and withholding tax payments.
- The company faces challenges in monetization per user in core markets, requiring broader audience expansion to mitigate lower monetization rates.
Good morning everyone. Thank you for joining us today to go through our results for the second quarter and first half of 2025. My name is Anton Gourman, and I'm the VP of Investor Relations at MTG. With me and hosting this call is our CEO, Maria Redin, and our CFO, Nick Hopkins.
(Event Instructions)
Thank you. Apologies again for the restart, and now I hand back over to Maria and Nick. Maria, please go ahead.
Thank you, Anton again. Hello everyone, again, sorry for the trouble on the sound, but thank you for joining us on our call.
Before we get into the numbers, I still again want to welcome Nick to joining MTG and our team. It's truly great to have him on board, and he's already proven to be a great addition to our team.
Having said that, let's now dive into the results for Q2, I'm very happy to deliver another quarter of exceptional business momentum in which we double our total revenues
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