MAG Interactive AB (publ)

Hello and welcome to the presentation of MAG's Q3 report. So here today and present is me. I'm Daniel Hasselberg. I'm the CEO of MAG. And Magnus Viklander, CFO of MAG. So this is a bit of a special quarter as a lot of the exciting stuff actually happened in June. So it's starting of Q4 rather than during Q3. So we're going to talk about both the quarter, obviously, but also some of the events that happened in the last few weeks. So highlights from the report. When we talked about CrossFit in the Q2 report, we said, OK, we're leaving soft launch now, and it's time to go and scale up the game, which for us means gradually increasing UA. And as we see data come in, double down when we see that it's working. So it's gradually been growing through April and May and really at increased speed late May and going into June. So very excited to see that momentum. Another highlight is the ARPDAU, so the average revenue per user across the entire portfolio is up 14% compared to last year. So I think this is a much bigger uplift than you usually see in a single quarter. And also, given that we're talking here about a million DEUs, it's huge to make that kind of uplift. And it's primarily QuizDuel, our biggest game, that has done a lot of really good things during the quarter in terms of how we run the events and so on that's led to this great win. And thirdly, we have a really interesting pipeline of new games we're going to talk about in a couple of minutes. But let's start with CrossL. So this is, of course, our new game. It's a PvP crossword game, and it's currently available in all English-speaking markets. And we're scaling it up quickly, as we mentioned in the report. Already now in June, it's the third biggest game in the portfolio. So it's only WordC and QuizDuel that are bigger than CrossL at this point. And if we can keep the momentum so numbers continue to look good and we can invest at this pace, it's going to be the second biggest game before the end of Q4. So super exciting momentum. And I think given that we had a really pretty stretched out soft launch for the game, I'm happy to see the outcome. So we went into the soft launch with a really strong product in terms of daily engagement and so on, all the things we want to see to take a game to soft launch. But then during this period, we doubled the RPTAO and made it into a product that really can scale with UA. So I'm super proud of this. And I think the team is super happy to see this result and see the next big game come out of MAG.

All right, so we'll have a look at the product mix on the right hand side here. As always, we have the older games where the higher revenue ones are taken care of by our live ops teams team. There are a few things we can note with the net sales numbers we show in this part of the portfolio over the last year. So the year of year comparison, but also in the last few quarters. Of course, we have the currency effect with the drop in dollar during the spring of this year. We have the divestment of prime time, of course, beginning of this year, and in conjunction with the release of Crossell, we moved that out last quarter and put that into the growth section of the slide.

And on the growth part, of course, great to see Crossell there being part of building that revenue piece and also As we mentioned, a lot of the growth, it's in June, not in March to May, but still it's part of the 46 million. I also think on that topic of exchange rates, the 46 here would have been north of 50 million if we had the same exchange rate situation as we had a few months ago. So a bit of growth is actually hiding here behind the fluctuations in currency. And then on the new game side, we have two more games coming out to test during Q4, both in the world category, both really interesting concepts. So we're excited to see those come out. And I also think the fact that we're now building on this modular platform gives these games a lot of stuff for free. So this can make us much faster in getting more new games to market. So we expect a higher pace going forward as well. And I think another component of this way of building that's important to understand is that when we build a new game, since they're built in modules, we can take a core mechanic and actually run it as an event in one of the live games. We can start seeing a return on investment even before we get a game to an eventual global launch. So I think this is a really valuable way in how we work now. So one of the games we have in testing since a while back, which is a tile matching mechanic, is going to run live in WordC later this year. So that's one example of how we can take things from the R&D side and actually start producing revenue even before a potential launch.