MAG Interactive AB (publ)

Hello, welcome to the presentation of MAG's Q3 report. Here to talk to you today is me, Daniel Hasselberg, the CEO of MAG. And me, Magnus Wiklander, the CFO of MAG. So as usual, we're going to walk you through some of the highlights and we're going to end this session with a Q&A and also throughout the day we'll answer any questions you might have on X. So going into the highlights here. So, of course, super positive to have CrossL our new game in soft launch and see it continuously developing well. So I'm going to talk a bit about that. Also want to highlight the fact that we continuously are a profitable operation, building out our cash position and it's in general super stable. And WordC and Quiztool, our biggest, most important games, show really great momentum in terms of new exciting features coming out and a good pace in product development and product performance. So if we start with CrossL, so here you see some views of this new beautiful multiplayer crossword game. So it's basically you and the opponent are playing on the same board. There's a light meta game in terms of travel themed decorations. You play in it, and as you win more games, you kind of proceed in the meta. It's been really well received. So at this point, we've had about 50,000 installs on Google Play in the US, and it's a 4.7 star rated game. But of course, like being a free to play company, we're mostly interested in data at this point when it comes to can we go from soft launch to a full launch. So we're looking at the return of UA investments, how big percentage of the money do we get back after a week, a month and so on. So right now we're very optimistic. We see good data in the first few weeks and we're now working with kind of a month and beyond and see if we can build this to really scalable product. So what we're doing right now is basically adding, optimizing the in-game content. That's of course the most important thing of a game, how it feels like the daily gameplay, but also looking at different kinds of events and playing around with different mechanics in the game. On the marketing side, we're gradually increasing, testing new campaign types. We're probably going to add new markets and tests for localization and so on in the coming months and basically tracking towards what we hope will be a global launch eventually. But we have some ways to go still in terms of the kind of long-term performance of the game and just making sure this is something we can scale. But looking at our history, we know that a game will live on for many, many years. So getting it really right and make sure the money we invest will be coming back to us with a profit is super important. We'd rather do this thoroughly than rushing it out.

Right, so take a look at our product mix with an overview of the portfolio and on the right hand side here, we have, as usual, the important part, which is a non growth part of the portfolio. We meaning no or little UA support for these games. It's the older, smaller games with a stable long term revenue stream generating profits for years to come. And on the top half of this side, we have the slightly bigger game where it makes sense for us to spend time and make sure they're fun and relevant. And that's what the LiveOps team is tasked to do on a daily basis. And overall, this part of the portfolio turns over roughly 100 million SEC annually.

Yeah, and on the left-hand side here, it's kind of the growth opportunities. So, of course, WordScene, QuizDuel, where we have the biggest teams, the biggest revenue streams and audiences, and where we really kind of We believe we have a lot of growth ahead of us still in terms of unlocking higher ARP DAO and be able to push more UA behind those games. So in this quarter, we actually were able to invest more in UA than the quarter before. So we hope we can continue that. And then super excited, of course, around Crosshole. So this is a game we hope to push up to that upper left corner of this picture. Getting it out, getting it to scalable new game for us for many years to come. And then we have other new game development that is kind of an earlier phase that we kind of don't call out by name at this point. But there's stuff like earlier in the funnel as well.