MAG Interactive AB (publ)

Hello and welcome to our Q4 report presentation. Here today to present is me, Daniel Hasselberg, CEO of MAG. And me, Magnus Wiklander, CFO of MAG. And we're going to talk you through some of the highlights from the quarter. And of course, just mention a couple of words about what we're doing here in general. So here at MAG, we make mobile games. We're both developer and publisher of the games. The target audience are casual gamers, mainly in North America and Western Europe, and they're all free to play. And our games have been downloaded more than 350 million times over the last 10, 11 years. Of course, it's a free-to-play company. We're both involved in creating really fun games, but also work with optimization on the data side in terms of improving the products and, of course, working with performance marketing. We are about 100 people at MAG right now, studios here in Stockholm and in Brighton in the UK. And to some of the highlights, so we'll walk you through this over the next 10 minutes or so. So first of all, just want to summarize, since it's a Q4, we have a full financial year. And it's the best year in the company history. So something we're very, very proud of and happy about. So thanks to everyone at MAG for helping to contribute to this. So we ended the year at 287 million in revenues, which is 32% up versus last year. And we also ended up in a profitable year, so that's something we're super happy with as well.

And we will look at our continued growth and our improved margins as well as our opt-out journey which concludes with another strong quarter.

And we'll also talk a little bit about our live operations which are growing in importance for the company and some talk about new games as well. So let's dive into it. So here we can see a picture of our revenues in ArpDAO for the last nine quarters. So I think what this picture tells us, of course, 59% growth year-over-year, which is fantastic. But also, of course, a long-term trend here. We see revenues going up and ArpDAO over for a very long period of time and this is a very orchestrated effort across all the teams to try continuously improve our games and what we see here as well is a very clear seasonal pattern so we always have this kind of q3 to q4 dip in terms of usage so our q4 are june july august which are the summer months so people tend to play less games during the summer And also in the advertising space, it's less appetite for buying ad inventory, which means that the CPM, so the average revenue get from the impressions, go down a bit during Q4. So that combined usually puts a press on our revenues and our lifestyle. We can see this in this picture. Q3 a year ago is a bit different as you all know it was kind of when the pandemic hit and we had a lot of unexpected downloads coming in so higher revenues in DEUs and also slightly pushed down on ARPDAU so that's kind of I think puts this picture into context.