MAG Interactive AB (publ)

Hello, welcome to the Q1 report presentation from MAG Interactive. Here today to present is myself, Daniel Hasselberg, I'm the CEO of MAG. And Magnus, the CFO of MAG. And the Q1 is covering September through November, so that's what we're going to talk about today. But first a couple of words about what we're doing here at MAG. So we are a casual mobile games developer based in Stockholm and we also have a studio in Brighton. And the last eight years, we reached about a quarter of a billion downloads of our games. And as free-to-play is our business model, we're kind of trying to combine creativity with data. So build really fun, engaging game ideas, and then use data to optimize the games and, of course, optimize marketing to make sure we get good return on investment for our marketing investments. And if you follow the company for a while, you know that since one and a half years back, we are completely focused around multiplayer games. So I think we've seen during the last few reports that it's becoming a bigger and bigger part of our business. And the reason for this focus is, of course, we looked at our own games and see what we do best. But it's also a trend we see in the market and where we think gaming is going into the future. That social is really, really important and people expect to be able to hang around with their friends and make new connections in the game. So that's the full focus of MAG going forward. And as usual, we want to lift up a few highlights from the period. One extremely big thing, of course, is that we actually launched a new game globally. So this happened on November 28th, so the last two, three days of this reporting period. But it's, of course, it's a work that's been carried on for a long time during the year. And making it all the way through testing and early tests and soft launches and so on and actually go to global launch is a really big deal for us. Usually when we see a new game come out in the market, it grows for maybe two, three, four years until it reaches its peak. So having a new game in the portfolio is a really strong thing for us. So Worxit just launched end of the period and of course new Quistiole, we talked about that during last year as well. So that's now finally out in Sweden and after the reporting period, so in December, we also launched it in the UK. And this is kind of more of a staged rollout than a soft launch, I guess. So seeing encouraging data in Sweden, adding UK, and then just building from this. It's a really, really exciting time for Quiztool. And then, of course, we have the kind of the ongoing business, the live games.

Exactly. And we have two ways of creating growth in a company like this. And it's either by building our audience through marketing or by improving the games in the portfolio, the live games. And the theme of this quarter has been improvements in the portfolio, as we'll see more about in a while. We'll jump into some of the financial KPIs and we're showing significantly higher net sales with 47 million in this quarter compared to 40 million in last year. And this is despite having a relatively flat user acquisition compared to last year. So we have 17% up in net sales while marketing is more or less the same. This goes back to the performance improvements of the games, the live games also connected. And of course given the high net sales and the flat marketing we have a fairly strong contribution. So with 31 million SEC in this quarter, up 5 million from last year. It's actually the highest we've shown since the last two years.

That's pretty amazing. And good to remind that that's sales minus marketing investments and platform fees. So this is really the money we can use to kind of invest in our business and so on.