MAG Interactive AB (publ)

Hello and welcome to the presentation of MAG's Q3 report. I'm Daniel Hasselberg. I'm the CEO of MAG. And Magnus Viklander, CFO. So as usual, we're going to talk you through some of the highlights of this report. So this is March, April and May. And then at the end, we have a Q&A session and throughout the day, we'll answer questions online as well on our X and Blue Sky accounts. So starting with looking at the highlights from this quarter. So our revenues grew by 9% as measured in US dollars. In Swedish krona it was about 4%. So there's a little bit of currency headwind here. The average revenue per daily active user grew by 24%. So this is kind of a combination of our latest game Crossell is now a bigger part of the portfolio and also kind of optimizations in our live games in general versus last year. And thirdly, we want to highlight that Wordsy is now out on our new tech platform. So that gives us a lot of interesting opportunities going forward. So more about that in a minute. In Q2, we talked about the geographical expansion of Crossell. So we localized it to a number of more languages, so Dutch and the Nordic languages and so on. And we expected that to result in growth in Q3, which we also saw. So the revenues and DEU grew throughout the quarter, so we exited at a higher revenue level than we entered the quarter. And I think it's a good reminder that this is a one-year-old game. We started skating it up in late May last year. And usually it takes two to three years for a game to peak after launch. So we have a lot of exciting stuff ahead of us in terms of new features and optimization of current both content and functionality in the game. And CrossL is also now rolling out on the latest version of our platform, which means that it's going to get access to all the functionality you can see in WordC right now. But also all the different side cores and the new functionality we're building on the platform side. So I think it's worth mentioning the platform extra this time. I wrote about it in the CEO report as well. We're really going into an interesting place as a company right now. And we have two of our most important games on the platform and all the new games also built to run here. And we are planning to migrate more of the live games to the platform as well over time. This means that when we develop a new feature, when we deploy it the second time and third and fourth time, it's much, much faster. So the average time to market for a new feature goes down a lot. Same thing with the cost. So it helps our margins. And also even as important, or maybe even more important, we get much more content out to all our games, which increases the LTV. And that in turn gives oxygen to the UA machine so we can run more UA, which we need to do to get to our kind of 500 billion a year financial goal that we set for ourselves so the platform the compounding nature of it that you build the more games you have on the platform the more platform the the the more valuable the platform becomes and when more games building features that all of them can use all the games grow in value so this is a really really important part of our strategy going forward and now we're really getting started when we have two of the most important games on it And here's just some concrete examples of things that are either on the platform or being built for the platform. Things you expect to see in modern free-to-play games and that can really benefit all of our games. There are kind of similar types of products, even though they have different core mechanics and so on. So things like daily missions or season pass or different events and competitions. But also importantly that we have the same system for optimizing economies and scheduling live ops events. So our central operations team can have a much easier way of kind of reusing wins from one game to the next and building really, really good tools so we can apply to all our games. So yeah, very exciting time for us to see that now kind of roll out in a bigger scale.

And with that, we take a look at the product mix where we do our usual portfolio overview. And in the older part of the portfolio, we show, again, good stability, same numbers, quarter over quarter. And also, if we look back a year or two years, we also have good stability in US dollars and movements are down to movements in the currency exchange rate. And stability here is a testament to the work we put in through the LiveOps team, making sure the apps are up to date and adding content for our users to enjoy over time.

Yeah, and on the growth side here was a little bit shift like the it's the revenue stable compared to last quarter. Quistio had a slightly slower quarter, we had a record quarter the quarter before, so still historically good, but slightly less than the quarter before, whereas words in Crossrail contributed more. So kind of the overall pie stayed roughly the same. But here's where we expect growth to happen is in this part of the portfolio. And on the new game side, last quarter we talked about that we had two new side cores that we developed, one Magic 3 core and a completely new Blaster puzzle core. Both of those are live now, so the Magic 3 is live globally in WordC. The new Blaster is live on Android for Quiztool in a number of countries, going global during this week and then hopefully iOS in the next week or otherwise in the very short time frame from now. And that gives us a lot of opportunities for optimization of those games. In addition, we of course also have standalone games in market testing, a number of word games that are all built on our new platform. And in addition, as you see some new stuff on this slide, The smaller symbols here in New Games & Core, and these are 100% AI-built games. So we have a very exciting timeline now for prototyping. We can go from idea to fully playable game experiences very, very quickly. So this creates a lot of interesting new challenges in terms of how quickly can you actually test and measure and get data to understand which of these are the very best ones so we can then put into production on our own platform and make it like the next big hit game from MAG. But it's really a very different pace in terms of the kind of prototyping of games, which is very exciting.