MAG Interactive AB (publ)

Hello, and welcome to the presentation of MAG's Q2 report. So here to talk to you today is myself, Daniel Hasselberg. I'm the CEO of MAG. And me, Magnus Wiklander, the CFO of MAG. And as usual, we're going to talk you through some of the highlights of the report. And then at the end, if there are any live questions, we take them here in the stream. And otherwise, throughout the day, we answer questions online on our account. But if we go into to talk about the highlights here, so our Q2 is December, January and February. And December started out really strong. It was the best revenue month of 2024. It was followed up by a weaker January, February in terms of revenues, but we had some other positive momentum in those months. So we increased the UA toward Crossell. And we also got another game out in market testing. And that game was developed really fast thanks to our new platform for building games. So that's a very positive sign for the future. And of course, if we look at today, we are also announcing that CrossL is leaving soft launch and is now an officially launched MAG game. So that's, of course, incredibly good news. Thanks to the great work done by the CrossL team. And it's been quite a long soft launch. I thought I would mention a bit what's happened during this period. Basically, all of 2024, the game was in soft launch. So first of all, of course, we worked with optimizing the game's performance in terms of content and feel of gameplay and so on. But also on a kind of KPI level, the RPTA roughly doubled during this period. So of course, that's super important for the long-term performance of the product. But we also tested two different types of presentations or metagames for this crossword puzzle. So we started out with a single-player decoration metagame, and then we tested it in parallel with a more classic PvP kind of wrapping, similar to kind of WordC, Rustle, Word Domination type of packaging. And in the end, that's where we landed with this testing. So now we decided this is the format of the game, and we're very happy with the performance we see. about an hour of average daily play time and the highest ARPDAU of all games we have at MAG. So really great to get that out there. I also want to mention what a launch means for us. So we're going to start out scaling up in the US market and English speaking markets. And then gradually, when we localize the game to more languages, we roll it out to more countries. And that's partly because a crossword game is much more fun to play in your own language. So even if we could obviously make this available, for example, in Sweden, I think the Swedish audience would not react so well to an English crossword as they will when we have localized it to Swedish, for example. So it's a process. And I think also for context, like when we launch a game, like historically over the last 10 years, it's always been this kind of scaling up and peak for a game in terms of revenues. It's usually after two to three years. And expectation levels for us for a new game is for that peak to be 100 million Swedish a year and the lifetime revenues of a game to get to at least half a billion Swedish. So that's kind of expectation setting for a new product. So super exciting to be out there with Crossell and thanks to the amazing work from the Crossell team.

Yes, and for our portfolio overview, we have two main things to note. One is the sale of Primetime, which with the icon being taken out and that was in January. It's affecting the January and February financials and this overview, of course. And the second one is the move of Crossed from new games to growth, reflecting the status of that game. And we put an asterisk on the revenue number in the other box here because it's affected by these two moves. It was 5 million in Q1 and it's three here and the effect is those two. So we have stability in the revenue of the older games.

And of course, it's great to see this picture now. We have three games in the growth department and that's also why we talk about that in the report. That we feel more confident in being able to scale up UA. We now have three games where we can push UA and expect to see future growth. And also in the new game side, even though we moved up to the growth segment, we still have three games in market testing and we see more stuff coming in the pipeline. So this is again, we develop games based on our new platform, which makes it much faster to go from idea to testing in the market. So hopefully going to see a lot more coming in that part of the product segment over time.