MAG Interactive AB (publ)

Hello, welcome to the presentation of Mag's Q4 report. So here to talk to you today is me, Daniel Hasselberg. I'm the CEO. And me, Magnus, the CFO. And yeah, since Q4 is going to be both going through the last quarter, but also kind of concluding the full financial year. So let's take a look at some of the highlights, if we can get the slide going here. I think the biggest thing to talk about for the full year is the ARPDO improvement. The average revenue per daily user is up by 21%, so that really speaks volumes to what we were able to do with all of the live games. It's an improvement across many of the games in the portfolio that can have these end results. In terms of revenue and profit, it's basically flat year over year. We're up 4% measured in dollar, down 4% measured in Swedish krona, and we've gone from a small loss to a small profit, but basically no No big action there, but what we're really excited about is the platform expansion. So this year we have taken two of our most important games out on the platform. So both Crossland Worlds are now live, which means that the platform has kind of real feature completeness in the sense that we can take two of our biggest games and run on the platform. So big, big news for us compared to a year ago. And if we zoom in on Q4 specifically compared to Q4 last year, it's a lot about kind of comparing a launch quarter to a non-launch quarter. So we scaled up Crossell last Q4, 34 million in UA, I think the biggest UA quarter ever for us. We found tons of really great volume, high quality and high volumes. This Q4 only 13 million in UA and that's a difference you see then in both top line revenues down 17% but also the result bouncing back from a negative to a positive result. So this is a UA impact we always see when it's kind of big fluctuations and this is maybe bigger than normal when you have a launch quarter the year before. What we also see if we compare last year to this year, a much, much higher pace in the new games developments. So I'm going to talk a bit about that later, but really, really massive difference in 12 months. So before we go into kind of talking about financial KPIs and so on, we want to highlight a few product developments. So one is the most requested and highly anticipated feature in Crosshold. So that's friend games. So now, in addition to play these kind of fast paced crossword games, you can also invite your friends and play asynchronous games with any friend you want to. And this is exciting for multiple reasons. One, as I mentioned, it's been really highly requested by players. But also that we've seen in our kind of evergreen games like Rustle, QuizDuel, WordC, people who play the game for many many years tend to build this kind of social network of friends in the game over time and that keeps them in the game. So that journey starts now for CrossL with kind of building up relationships, making friends or inviting friends to the game. So we see this can help in both driving organic traffic and also build this kind of solid network. And there's a bunch of more stuff coming in the game. Now, this launched about two weeks ago. And there's more stuff coming in terms of making it easier to find friends, invite friends, and compete together with friends in the game.

So super exciting for CrossL.

And also for QuizDuel, our biggest game. So we have a new big feature in the game, lots of new content. new ways to play that you haven't seen before in QuizDuel and also this game mode is not on a timer so this is what the team talks about a kind of Netflix compatible gaming so no pressure you can do something else and play the game at the same time This is the biggest new trivia feature in the game. We've launched since Questings Week Leagues and if you follow us and QuizDuel you know that that's been a big driver of growth for the game. So we're really excited about this. Test launched in Italy last week. It's now available in Sweden and a few other markets. And the aim is for next week to be the big kind of rollout in the German speaking markets, which is the biggest part for Qwistyool. So very exciting to see this out in the wild after a lot of really hard work from the team. Yes, and I want to talk a bit about our platform. So as you've heard us talk about for the last couple of years, we're moving more and more towards being kind of a platform-based games company. So we want to have all our games on the same platform so we can build a feature once and roll it out across all of the games. And when we improve a feature in one game, have it easily transferable to all the other games. Building a feature once and rolling it out across a bunch of products of course get the average time and the average cost per feature down. So we really see us becoming much faster to market with new features and also when we make a new game getting it to feature complete state much quicker. And the aim here is of course get higher lifetime value for each player which can unlock then more UA potential and grow the size of our business and Our financial goal is to get to 500 million of yearly revenues, and we see that that could unlock a 20% EBIT margin. So that's kind of the goals we're building towards here. And we think the platform is a hugely important piece in that strategy. And here are some examples of when we build things that are kind of game agnostic. So a feature you can run in basically any game. It doesn't have anything to do with the game mechanics of that specific game. So things like daily missions for the player to do during a daily session or a full day of gameplay. or Season Pass or different types of events. And next week, the Season Pass premieres in Worsley, and that's going to then go live in Crossville. And we have an album collection feature that's about to go live in Crossville that will also then go live in Worsley. So you're going to see this in the coming months, how being on the same platform really benefits multiple games. And then, of course, moving more and more games to the platform makes it even more powerful. And for the operations side of things, the same platform and same services beneath really makes it more easy to optimize economies and transfer learnings between games. So that's also a very important piece of this.