MAG Interactive AB (publ)

Hello and welcome to the presentation of MAG's Q4 report. So here to talk about it is me, Daniel Hasselberg. I'm the CEO of MAG. And me, Magnus Viklander, the CFO of MAG. So as usual, we're going to walk through a bit of the highlights of the report and then we round off with a Q&A, any questions that might have come in during this presentation or maybe some things that we've seen online already. And then throughout the day, we'll answer questions on our X and Blue Sky accounts. So let's get into this. Q4 is June, July and August. And if we look at some of the highlights here, it's of course CrossL, our new game, scaling up. We had really great UA throughout Q4 and the game, we talked about it in June, we presented Q3, that this might become the second biggest game of the portfolio already during Q4. And that also happened. We also saw on the ARPDAU number here, plus 46% year over year. And that's of course related to the significantly higher ARPDAU in CrossFit compared to our other games. And I also want to mention QuizDuel that had another top year. Our biggest game keeps on growing and we're very optimistic about the future for QuizDuel into the coming year as well. So if we zoom in on Crossell and look at that game a little bit. So as I mentioned, it's now the second biggest game in the portfolio. And it's a really strong game in the crossword category. In Q4, we were in the English-speaking markets only and mainly growing in the US. Now in Q1, we're going to open up gradually for more and more markets, starting with Sweden last week. And we also talked about in the report that the UA volumes fluctuate a bit from time to time. We so far in Q1 have a lower investment level than we had in Q4. And this is something we see as a very normal kind of start of a life for a new product. We historically see that our games peak maybe two to three years after launch. So it's very early days, but we have a very strong game and we're super optimistic about where we can take this over time. It's a lot of new stuff that is happening with the game. As I mentioned, new markets, of course. It's a great opportunity to scale up further. But also the continuous product development. We're really just getting started now, getting a lot of user feedback and data so we can continue with an exciting roadmap for the game. It's just super early days and we're very, very optimistic about this game's future.

So to our usual look at the product mix in a portfolio and a few notes on the right hand side here. First, where we have our older, smaller and sometimes game tests included, and the bigger ones are taken care of by our LiveOps team. The revenue numbers we show here are the same as in Q3, so that shows good stability. And then looking back a year, we're showing a drop, and that will connect to currency headwind we had in the last year, and to some changes where divestment of prime time is a factor, and also moving cross-sell out of the other section into the growth section at the global launch. So then a like for like comparison year over year in US dollars, we show a really good stability in the last year as well.

Yeah, and if we look at the left side here with the growth games, it's great to see how Crossell is contributing. We grew by 22% from Q3 to Q4 and it works. They had a stable quarter. QuizDuel is growing, but of course, the majority of this growth comes from Crossell. So great to see that 60 million is a higher number than in a long while and just happy to see this growth part really driving in a great way. And on the new game side we talked about that in June that we expected to have two more games going out in market testing during Q4. And that also happened so that's great to see that we're delivering. Those games are in testing now in the Philippines and we see some really interesting numbers coming out of those tests. I also mentioned in the report that the first six months of this financial year, we expect to get even more new games out in testing. Thanks to the new platform we have, we're getting quicker and quicker when it comes to new game development, and they will also come out in a more feature-complete way and give us answers faster if they work or not.