Q2 2026 Modern Times Group MTG AB Earnings Call Transcript
Key Points
- Modern Times Group MTG AB (STU:MRTA) reported strong financial results for Q2 2026, with net sales of nearly SEK3 billion, representing a 6% year-over-year increase in constant currencies.
- The company achieved a 24% EBITDA margin in Q2, up from 22% in the same quarter last year, driven by strong growth in RAID: Shadow Legends and D2C initiatives.
- PlaySimple delivered outstanding performance, contributing significantly to the company's growth with new games like Crossword Go!, Cryptogram, and Tile Match.
- The company successfully reduced platform fees from 17% of total revenues in Q2 last year to 12% this year, enhancing profitability.
- Modern Times Group MTG AB (STU:MRTA) generated SEK474 million in unlevered free cash flow in Q2, demonstrating a strong cash conversion rate of 81% on a rolling 12-month basis.
- Forge of Empires experienced a 22% year-over-year decline in revenues in constant currencies, reflecting challenges in maintaining player engagement.
- The company's ARPDAU in the Midcore District declined by 2% year-over-year, impacted by lower ARPDAU in several games.
- User acquisition costs increased by 15% year-over-year in constant currencies, representing 39% of total revenues, which could pressure margins if not managed effectively.
- The company faces tougher year-over-year comparisons in the second half of 2026, particularly for PlaySimple's new games, which may impact growth rates.
- F1 Clash and other non-core titles underperformed, partly due to external factors like race cancellations and less excitement around the current season.
Good morning, everyone, and thank you for joining us for our Q2 and half-year 2026 results. My name is Anton Gourman, and I'm the VP of Investor Relations at MTG. Hosting this call today are our CEO, Maria Redin, and CFO, Nick Hopkins. (Operator Instructions)
I now hand over the call to Maria. Maria, please go ahead.
Thank you, Anton, and hello, everyone. I'm very happy to deliver a second quarter with continued good business momentum.
Before we go into the detailed numbers, there are three things I want to call out that I'm particularly proud of. The first one is another quarter of strong financial results, combining organic growth, healthy margins, and high cash generations. This demonstrates that our portfolio and our district strategy works well. Our key growth highlights in the quarter were PlaySimple, which has delivered another outstanding quarter from scaling new games, and
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