MAG Interactive AB (publ)

Hello, welcome to the Q3 report for MAG Interactive. So we're going to talk about March, April and May today. And here to present is myself, Daniel Hasselberg, CEO of MAG. And me, Magnus, CFO. And as usual, before we go into the highlights of the report, reminding you that we have a Q&A session at the end and also we'll take questions on Twitter during the day and you're going to get some information about to reach us on Twitter and a couple of words about MAG before we dive into things. So we are a mobile games developer, started here in Stockholm 10 years ago. Now we have one studio here in Stockholm with about 65 people and we are about 20 people in Brighton in the UK as well. And over these 10 years we have reached more than 250 million downloads and Our focus is basically North America and Western Europe, or that's where we see the biggest traction for our games to date. We are a free-to-play developer, which means that we are working with this kind of crossroads of creativity and data. So building really fun, engaging games, and then we use data to kind of optimize product experiences. And also, of course, in the performance marketing part of the business, it's really important to be on top of all things data related. So we have some really good analysts and a lot of good tools we've developed over the years to be able to do that. And since we started, we have launched a number of games. I'd say average maybe one game a year. So it ends up being a really strong live portfolio of games. We have more than 2 million daily active players. It's a very steady number for us. We have more than 1 million hours of gameplay being played every day, something we're very proud of. So it's not only high volumes of downloads and players, it's also very high engagement. And the portfolio is kind of split between single player and multiplayer games. But the focus of the last two years has been on kind of doubling down on multiplayer, both existing ones and building new multiplayer games. And today we also want to talk a bit about how we view our product portfolio in terms of where are the different products in their life cycle. So we split this up into kind of four parts, new games, growth games, evergreens and catalog. And new games, obviously, that's both all the guys are working on the games you haven't seen yet, but then the games that are out there also generating revenue so that we have new Quistio, which is kind of almost in the growth part now. And we have made a bit of a dotted arrow here from old QuizDuel to new QuizDuel. And that is to show audience moving from one game to the other. And that kind of cross-promotion of players will push new QuizDuel up into the growth part of this chart. And in the growth chart, we have games that have significant revenue for the company and also significant growth potential. That's basically how we define that area. And then of course we have the Evergreens and the Catalogue games.

Exactly, so on the right hand side where the Evergreens and Catalogue are, we have the mature games that's been around for quite a few years. On the upper half, the Evergreens, is where we have the more significant revenue per game, and we find QuizDuel, Russell and World Brain. And these are games that have really good volume, as I said, and good margins, so we could make good profit out of each game there. Usually also, for the multiplayer part of this, we have a situation where the audience is actually the content, so they're relatively easy to maintain and run. But we continue to invest in these games, and we continue to launch the updates. For example, Russ had recently had major upgrades to himself. World Brain is also in that portfolio, part of the portfolio where we have higher revenues, slightly more content heavy since we have to create content for users on an ongoing basis, a single player and level based game.

I think the amazing part with that part of the portfolio is kind of there is really hard to see an end to this. We've seen games being out for seven, eight years and there's no sign of the games going away. I don't think anyone in the free-to-play space knows the lifetime of a game yet. It might be 15 years, it might be longer, who knows? At least more than eight years, that's for sure.