Modern Times Group MTG AB (publ)

All right. Good morning, everyone. And thank you for joining us today for our Q4 and full year 2025 results. My name is Anton Gorman and I'm the VP of Investor Relations at MTG. Hosting this call today are our CEO, Maria Redin, and CFO, Nick Hopkins. There will be opportunities to ask questions after the presentation. Please use the online form if you want to add questions to the live stream or follow the instructions from the operator if you're dialing in by phone. I now hand over to Maria. So, Maria, please go ahead.

Thank you, Anton, and hello, everyone. We're now close to 2025, and I'm really proud to report a great finish to what has been a great year. We've taken big steps forward to evolve our group while delivering all-time high revenues and profits. And as I said, we truly had a transformative year, and MTG is bigger, better, and stronger today than ever before. The acquisition of Plarium has significantly boosted our scale and critical mass, and adding also a strong lineup of games, most notably Raid Shadow Legends, to our already high-quality portfolio games. The consolidation of Playroom's tech and tools is also enabling us to take a major step forward in our vision of creating one of the best mobile gaming groups out there, where we are becoming stronger and better together and elevating the best of both companies. The acquisition has also enabled us to build up what we call a new district model, where we have both a mid-core district and cashier district. In our mid-core district, we are now well underway on our journey to create a state-of-the-art shared platform service where we can support and empower our game studios. And in our cashier district, we've set out and we're executing on a new long-term growth strategy, and we've also conducted an IPO study for a potential listing of Play Simple in India. On top of this, we also deliver 9.4% organic growth for the year, which is slightly higher than the top end of our 79% guided range. And we have more or less doubled our year-over-year revenues in constant currencies. We finished the year with an 8% organic growth year-over-year in the fourth quarter, and we reported record quarterly total revenues of 3.1 billion krona. We also reported 11.6 billion kronor in total revenues, which is equivalent to around $1.2 billion, which is also in the upper half of our full year guidance range of 11.4 to 11.7 billion kronor, including plurium. And this is despite the negative impact we see on FX movement, where the dollar has lost versus the Swedish kronor. We continue to invest in marketing levels and attract the returns. Our original studios increased their marketing investment by 25% year-over-year in Q4. And we also had an all-time high 1.2 billion krona in user acquisition spend in Q4. That is equivalent to 38% of our revenues. Despite this continuous user acquisition investment, which gives us a great momentum as a start in 2026 as well, we generate a record quality adjusted EBITDA of 707 million kronor in Q4. This is equivalent to a margin of 23%, both for Q4 and the full year. Again, delivering in the upper half of our guided margin range of 21 to 24%. Looking at the cash flow, we generate 878 million in unleveraged free cash flow in Q4. We do have some positive working capital effects in the quarter. These will bounce out in Q1, and Nick will take and talk to you about this later. For the full year, we delivered strong unlevered cash conversion of 66%, which reflects the strength of our underlying operational cash flow generation and was well in line with our medium-term target of cash conversion over 60%. A quick look into our total sales before we go into the franchise reportings. As a quick recap, we reported record revenues of 3.1 billion kronor in Q4 and 11.6 billion kronor for the full year of 2025. This represents an increase of 108% year-over-year in Q4 and 107% for the full year in constant currencies. Our reported sales were up 84% and 92% year-over-year, respectively. On a like-for-like basis, we had a negative 12% currency impact, and that is roughly half of what we report as a negative currency effect at 23% in the quarter. And if you also look at our like-for-like revenues, when we include our original studios and Plarium on a constant currency basis, we were up 3% for both the full year and for the quarter. So moving forward then, and let's look at the performance of our franchises and key games. Just as a reminder before going into this, we will start per Q1 a new segmental report and disclosure that will reflect the two districts that we're moving into. So Q4 report is the last time we present the information in this way. Starting then, and let's look at Polarium. RAID Shadow Legends delivered a strong Q4, and we managed to set a new record for daily revenues in December, which is an impressive achievement. The team delivered another successful IP partnership with Alien and Predator. They also executed on an ambitious pace of both in-game events and live ops, and they were supported by a Black Friday sale. As a result, RAID delivered revenues on par with a highly successful Q4 2024, which we're really glad to see. Raid's strong performance in Q4 has also continued a positive momentum going into Q1, where we also supported the game with high levels of UA, which is an encouraging start of the year. If looking at Playroom as a whole, revenues were down by low single digits on a comparable basis year over year, and that reflects lower revenues from the rest of the portfolio that is offsetting the positive performance we're seeing in Raid. Our word games franchise delivered another quarter of outstanding growth. Franchise revenues were up 23% year over year in constant currencies and by 17% for the full year. This performance was largely driven by the rapid scaling of our four new games, Crossword Go, Tilematch, World Tour and Cryptogram. And this is indeed encouraging as we look into 2026 and onwards that we have so many new games that we can successful marketing and scale. The growth for the full year also benefited from the geographic expansion and localization of our established word games, which primarily then took part during the first half of the year, but we've been scaling them successful thereafter as well. And what I find really exciting as we look towards the end of the year is that PlaySimp has continued to drive growth, both in its core word games, but equally exciting to see that they're moving into the adjacent puzzle category, which opens new addressable markets for them. Moving into our strategy and simulations, the segments were down 10% year over year in Q4, but it was up 3% for the full year in constant currencies. Revenues in Forge of Empires were down year over year despite several in-game events for Q4. We should remember that Forge is turning 14 years old, which is an amazing achievement. It is one of our longest standing evergreen games, and we are firm committed to that it will continue to be a cornerstone of our portfolio for many years to come. And we know that speaking to the team, they have an engaging discussion on how to optimize the games for many years to come. Heroes of History, which is now just over one year old, grew significantly year over year as it continues to scale. Remember, this is also a sequel to Forge of Empires. The game team maintained a high pace of new content in Q4, with multiple in-game seasons, events, and a new city for players to explore. Moving to Snowprint and Warhammer 40k Tacticus had a fantastic year, and the team has delivered strong double-digit growth for the full year basis. The game continued to scale significantly during the year, and the cadence with new contents and events has been driving the performance. And besides this, the team has also been focused on improving the game's direct-to-consumer monetization capabilities, which is something that is also a priority for us as a group, and enhancing also the offering in its web store. Tactical's revenues were down in Q4, and this comes from a mix of significantly weakened dollar versus SEC. It had challenging comps from last year, but we're really happy to see that the team has one of the most exciting game lines that we're looking into next year, and it also strongly finished the year with all-time high revenues and strong performance in December. We remain very actively excited when we look at the pipeline as we look forward. Moving to our racing franchise, revenues were up 43% year-over-year in Q4, and by 19% for the full year in constant currencies. It's been great to see the franchise coming back to growth, and the team has done a great job delivering the season reset for Formula 1 Clash earlier this year in May. We maintained excellent momentum in Formula 1 during the year, and we also had a strong finish as the season racing came to a conclusion in the beginning of December. Top drives also grew year-over-year in Q4, supporting the overall racing franchise performance. Last but not least, the Tower Defense franchise revenues were up 4% year-over-year in Q4, but down 8% for the full year in constant currencies. The active player base in Bloons TD6 has continued to decline, even though player engagement remains high, and we had an active content release schedule in the game. I'll now hand over to Nick and we'll talk about more operational performance and the overall financial performance.

Thank you very much, Maria. So, as discussed in previous quarters, the consolidation of Playrium shifted our overall revenue mix towards a high proportion of in-app purchases in 2025 relative to 2024. And in Q4, 74% of our revenues were from in-app purchases. We had a slight uptick in contribution of revenues from in-app advertising in the quarter, up from 20% in Q3 to 22% in Q4, and this was driven by the outstanding growth of our word games franchise that Maria just spoke about. Direct-to-consumer, or D2C as we call it, remains a core strategic focus for us as a group. In Q4, we generated 32% of our revenues from D2C, and this compares to 26% in the third quarter of 2025 and 19% in the fourth quarter of 2024. which was the last quarter before we consolidated Playroom. The approximate 600 basis points sequential growth from Q3 into Q4 was primarily driven by the introduction of direct payments in Raid Shadow Legends, as well as other DTC initiatives such as Warhammer 40k Tactics' web store. We had 9.4 million daily active users in Q4, up from 8.9 million in Q3. And again, this reflects the very strong performance of our word games as we continue to scale new titles. ARPDAU, or Average Revenue Per Daily User, was broadly stable quarter on quarter. This reflected higher ARPDAU in our strategy and simulation and tower defense franchises, being offset by the mix impact from the growing contribution of our slightly lower ARPDAU word games. Now, if we turn and have a look at user acquisition. As Maria said, Q4 was a quarter of many records, one of which being UA spend. We invested a record 1.2 billion sec in user acquisition in the quarter, bringing our total marketing spend to 4.3 billion sec for the full year. Our total group UA spend has broadly doubled, up 98% year-on-year in constant currencies in Q4, and up by 109% for the full year, again in constant currencies. We have continued to invest in UA to underpin both near-term and medium-term growth at attractive return levels. We have continued to do so with a very disciplined and holistic approach, prioritising both the allocation of spend where we see the highest levels of return and into scaling new games. UA spend in our original studios was therefore up by 25% year-on-year in the quarter in constant currencies. We also continue to scale investment behind Raid in the quarter to capitalise on the game's positive momentum, which has continued into 2026, which is very encouraging to see. UA spend therefore represented 38% of group revenues in Q4 and 37% for the full year basis. So now let's look at our profitability. We reported a record 717 million sec in adjusted EBITDA in Q4 and 2.6 billion sec for the full year, equivalent to around $280 million. This represents a 58% increase year-on-year in Q4 and a 59% increase for the full year. As per revenue, the significant weakening of the US dollar against the SEC has a flow-through effect on our profits. And it's worth noting that our adjusted EBITDA growth in the quarter would have been closer to around 80% on an FX neutral basis. And on a full year basis, our total adjusted EBITDA would have been in excess of 2.8 billion SEC in constant currencies. This increase in the adjusted EBITDA reflects both the flow-through impact from our organic revenue growth as well as the consolidation of Plarium from the start of February. Despite our record levels of UA investment that I spoke to on the prior slide, we delivered adjusted EBITDA margins of 23% for both Q4 and for the full year 2025, which, as Maria mentioned earlier, this is in the upper half of our guided full year range of 21% to 24%. So we're incredibly proud to have delivered on this achievement, in particular in the context of our total revenue also being in the upper half of our guided range. This really demonstrates our ability to deliver on both growth and on margins through disciplined UA investments and our portfolio management. Our adjustments to reported EBITDA in the quarter amounted to 114 million SEC. These included 82 million SEC of M&A transaction costs related to the performance-based revaluation of put call options for Snowprint, 25 million SEC in restructuring costs related to the mid-core transformation programme, and finally 6 million SEC in adjustments for non-recurring bonus structures for a multi-year employee share options programme in PlaySimple. I'd like to finish by looking at our cash flow and at our leverage. We delivered cash flow from operations of 840 million sec in Q4. This was comprised of income before tax adjusted for items not included in cash flow of 668 million sec, taxes paid of 75 million sec and positive working capital contribution of 240 million sec. Our cash flow from operations in Q4 was boosted by elevated working capital levels, which are primarily timing-related and expected to reverse in Q1 2026. Our capex remained low at 52 million sec, reflecting both the asset-light nature of our business and our prudent approach to how we capitalise our game development. We had 20 million sec of realised currency FX, and we paid 70 million sec in interest in the quarter, therefore generating unlevered free cash flow of 878 million sec in Q4. On a full year basis, we generated 1.7 billion SEC in unlevered cash flow, which is equivalent to around $180 million. And this corresponds to a 66% unlevered cash conversion rate for the full year, which is in line with our medium-term guidance that we presented at our Capital Markets Day of achieving cash conversion in excess of 60%. Whilst our unlevered cash conversion was slightly higher in the quarter due to the working capital movements that I've already mentioned, excluding those one-off timing effects, we still would have also delivered unlevered cash conversion in Q4 of excess of 60%. Whilst we reported net income of negative 62 million sec for the full year, if we look at the underlying adjusted figure where we exclude non-cash items and amortisation related to PPA from our M&A activities, we delivered 1.4 billion sec in adjusted net income for 2025 on a full year basis. We therefore delivered an adjusted EPS of 11.33 kroner for the full year and unlevered cash flow per share of 14.16 kroner. Our financial net debt amounted to 2.5 billion SEC at the end of the year, which comprised external financing of 3.5 billion SEC and lease liabilities of 253 million SEC against 1.2 billion in cash and cash equivalents. So our financial leverage ratio therefore amounted to 1.02 turns based on our full year EBITDA, including Plarium. If we then look at our total net debt at the end of the year, this amounted to 3.9 billion sec. This comprised our financial net debt as well as earn-out liabilities of 1.1 billion sec and put call options of 250 million sec. And so, therefore, our leverage ratio amounted to 1.58 times our full-year EBITDA, again, including Playroom. So, with that, thank you, and I'll hand back over to Maria to conclude.

Thank you, Nick. And before we go into Q&A, I just want to take a moment to summarize our year and where we stand as we now head into full steam in 2026. Looking back to 2025, it has been highly transformative for us, and I'm really proud of everything we have accomplished during the year. The acquisition of Plarium was a major catalyst for us, an enabler of the creation of a new district model where we are combining and elevating the tech tools and the people we have across the group and truly making us stronger together. The newly established executive leadership teams across both mid-core and cashier districts are executing upon clear strategies to drive sustainable, profitable growth in the years to come ahead. We have also concluded our IPO readiness study that we talked about at the Captain Markets Day and we proceeded to appoint advisors to prepare for a potential listing of Play Simple in India in 2026. We do believe that this presents a very exciting opportunity for Play Simple and for MTG and has the potential to accelerate our M&A ambitions in the cash or gaming market. I think what is really amazing as well as we've done all of this was also delivering operationally and financially and setting new records and delivering on our guidance. This underscores the strength and the dedication of our teams and the quality of our portfolio and games within. I truly believe we're in a fantastic position to continue to deliver growth and value to our shareholders in 2026 and beyond. And with that, I want to thank you for your interest and we are ready to take your questions.

Welcome to the conference call. For the first part of the conference call, the participants will be in listen only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers. Please go ahead. The next question comes from Simon Johnson from ABG Sundal Collier. Please go ahead.

Good morning. Thanks for taking my question. I hope you can hear me. So my first question, I know that you're not guiding for 26 right now, but I think it would be helpful to you to share your sort of near-term ambitions for Plarium. It's the largest unit recently acquired, of course very important for organic growth. Sales has been declining a little bit here, but RAID is relatively flat. So looking ahead, you know, will you aim to keep RAID flat and sort of let the rest fade away a bit, or will you aim to invest more to to get Raid up to positive growth. So, yeah, if you can elaborate a bit on that.

Yeah. No, thanks for your question. I think we're really excited when we look at Player Man Raid in particular. I think the game has had a strong 2025, so I think we're actually quite pleased to see the performance. And I think what we, in particular, the second half of the year, we may not have talked about it enough in the report, is that Together with the team, we have been, I mean, they clearly been working and presenting their roadmap. And also you had Stas presenting at our Captain Markets Day on how they work with RAID. So RAID do have a truly exciting pipeline, not just in 26, but 27, and they're also already working on 28. And on back of that, we've also been scaling up UA during the second half of the year. So the momentum that we see in that game, I think it's really exciting and we've been seeing good projection. So our ambition is that we're able to grow in the coming years and that's what we're going to work with the team to deliver. And I think that's exciting. Raid is today the bigger part of Plarium. We said that from the beginning. I think we said when we acquired it that Raid is approximately 70% of Plarium. I think if you actually look in Q4 and the strong performance of Raid and then also to be fair the slightly weaker performance of some of the legacy games that is almost close to 80%. So that just shows the quality of that game and that is something we want to continue to invest in.

And I think just one other thing that I'll briefly add is if you do look at rate performance whilst in Q4, as we spoke about, it did have a tough comparison to Q4 last year. On a full year basis, on a constant currency basis, it is delivering low single digit growth. So it is already in growth mode.

All right. And I think you wrote that the end of Q4 was very strong. I think you mentioned very strong in the report you also said. start of 26 has also been very strong so i mean compared to the h2 25 levels where you were scaling up to i think sort of building on that trajectory into the start of this year that you have seen incrementally positive momentum recently or how should you view that with your comment on early 26 strong start

No, I think you're reading it in a good way. I think we, last Q4 2024, we did not owe them then, but they had a very, very good quarter. So they had tough comps in Q4 to Nick's point, but they still reached all-time high in December, which is great. And I think the momentum we go into in January, where they had an exciting IP collaboration as well, is very good. So that just shows that It's a six-year-old game, but it's at the same time only a six-year-old game. We have Forged Vampire that is celebrating the 14-year-old sort of game now. So we are very excited when we are looking at Raid and its potential going forward. Of course, you shouldn't expect sort of double-digit growth for such a huge game because it has already a significant scale. But the talent behind the game and the creativity that they have with that game is impressive, and also that we can scale up marketing and increase investment with strong ROAs is a positive sign.

All right, I got it. Also, on the D2C revenues, which were quite strong here in Q4, you mentioned RAID as one of the drivers for that. So is that part of the good momentum also that you have seen government in that channel, or was that on the DTC revenue growth was sort of the main reason for the high DTC sales? You also mentioned Tacticus, but was the increase more physical towards RAID, or was it evenly between RAID and Tacticus, you would say, or how was that?

Yeah, I think that across the DTC initiatives that we're implementing in the groups, which, as we spoke about at our Capital Markets Day, that is, for example, direct channels such as player-in-player and web stores, and then it is also direct payments. We've continued to see increasing contribution from all channels. specifically in the Q4 versus Q3 comparator, and that step up from the 26% to 32%, that has been more skewed towards the RAID direct payments introduction. But overall, we are seeing kind of overall growth in DTC contribution from all the different growth factors. And when we were speaking, just to clarify on kind of RAID's overall strong performance, we are speaking about that kind of, if we do look at on a gross basis before we are looking at any platform fees, or also on a net basis as well.

Alright, when you do that sort of mix shift, transferring the revenues into other channels, do you see some kind of organic drop that you give a discount or something for the direct payments? Or what do you think you can maintain? Have you seen that you can maintain sort of the volumes?

Yeah, but I think that is a truly important part that as you're moving into different payment channels, you need to make sure that you keep your conversion. And whilst we can sort of give slightly alternative offers, you need to make sure that it still provides a net positive for us as a company, still giving a good offering to your customers. So I think that is something we are closely tracking and also A-B testing to make sure we strike that fine balance. And so far, I think that we have balanced that in a good way. And we do see D2C being a great opportunity for us going forward as well. And then it's, of course, up to us to choose that incremental margin. How do we best benefit of that? What should we invest into further user acquisition in a good way versus what do we take down to the bottom line profitability?

All right. And the last one on the D2C increase here in Q4. Do you think that's We should view that as a step up that you will continue to build from or do you think there are some kind of one-off effects in the high share in Q4 or how should we view that into the next general quarter?

Yeah, no, I don't think that I'd characterize it as kind of any one-off effects. And so this is a kind of rebase, which we continue to build momentum from thereafter. I think the only one caveat that I'd say to that is, as we have alluded to, obviously, RAID did have a very strong Q4, and in particular, December. And given that the step-up was also driven by direct payments and RAID, there is a slight mix impact within that. But essentially, no, there are no one-off impacts. This is a new basis from which we see further contribution growing from here.

All right, interesting. There's one last from me on India listing. I think you, if I remember correctly, you stated your intention to keep a majority ownership of, for example, but would you say you're open to other alternatives as well, where you're not the majority owner?

I think as a part of that filing, you need to state your intention, and our intention is to remain a majority owner. We think PlaySimple is an amazing company, and I think the future potential of that, if we can also add the right selective M&A next to PlaySimple, is truly exciting. So that's why we would like to remain majority owner of PlaySimple. As we move forward, of course, from time to time you will need to reassess that, but that's our intention where we are today.

All right. That's the intention, but it sounds like you're open to alternative.

Well, that's our intention today.

All right. That's all for me. So thank you. Thank you so much for taking the question.

Thank you. The next question comes from Jacob Edler from Danske Bank. Please go ahead.

Hi, guys. Thanks for taking my questions. I think that Simon asked a bunch of my questions already, but just a couple of ones to kind of follow up. Just on the specifics, within Plarium, you know, the legacy games, as you call them, have been declining year over year for, you know, a couple of quarters since integration. But how are those games kind of developing on a sequential basis? I mean, are we getting to a point where they're starting to kind of level out, or is it still in a kind of a... declining mode sequentially in constant currencies?

No, thanks for the question. Hi. Again, we don't break down individual gains, but if you would look at it more holistically, you can argue that they did have a rather steeper decline in the beginning of the year. And I think as we come into the end of the year and we look at plans into 2026, you could argue that they have both coming from a smaller base. But the aim is, of course, that we should stabilize at least the core of the games which you can argue both mech arena and merge gardens are still sizable game for us and relevant games and i think the teams behind both games do have good plans on how they should stabilize the performance within that and that's of course what we will support as well as we go into 2026. great and just a second question i mean obviously the racing genre driven by f1 has been really strong this year

What are your plans kind of to, I guess, bridge that into the season reset in 26? I mean, I guess it's a very hard question to answer for you guys, but do you have anything to comment there?

First of all, I think it's fair to say to your point that we are really excited about the season reset this year and the focus the team has had to turn the trends around. I think that's a massive undertaking and I think a great testament to the team. We did get a little bit of support also from the Formula One excitement for the movie and so forth. I think what is exciting as we look forward, I mean, yes, we bring the learnings from the previous season resets into it, but then the overall Formula One is going to have a major overhaul. So hopefully that will bring even more excitement into the category and that could hopefully also benefit us. And of course, our focus lies in making yet another really strong season reset also in 26.

And I think the only other thing I'd add on as well is if you look at also the performance of the game kind of post the conclusion of the season, some of the events that are post-season events and the continued momentum the game has been able to carry between the seasons gives us a high level of encouragement as we then do start the new season.

Great. Just another one, a specific question on Tacticus. I mean, now it's declined a bit in Q4. Is that mainly just the element of the comps here? I mean, there was a lot of content out in the market on the Warhammer IT last year. Is that the main effect, would you say? I mean, you are studying the comps, just to kind of understand the underlying dynamics.

Yeah, I mean, we're still really excited about the potential of the game and hopefully that was clear also as we presented. But you're fair to say there are two drivers last year that sort of boosted. I mean, you had year over year, the dollar has gone down significantly and that is predominantly dollar denominated game. when you look at the customer base. And then second of all, the hype around Warhammer as an IP was huge last year. So that did impact. And then also a little bit to the timing on when we actually did have our major events that was skewed a little bit more to Q3 this year. So it's a combination of those things. Looking forward, the team has an active pipeline and they're really excited about the game and so are we.

Cool. Just a last housekeeping question on my end. Cap is not at a very high level, but it's coming up a bit sequentially. Is that just an element of us getting a bit further into the development cycle? And I don't know, I think Plarium has a quite interesting pipeline down the line. Is that how we should read it, or is it just facing effects? Is this kind of a round rate to expect, or should it come up a bit heading into 2026?

Yeah and I think you've characterized it quite well as we spoke about about the capital market stay as we look at our kind of new games pipeline for the years ahead. We do have a combination of kind of smaller smaller games which are kind of low risk but lower reward but then also some slightly bigger games. And therefore as that mix does include some of those bigger games that has been that slight increase in capex but still not a material amount.

Thank you so much. That's my question.

Thank you.

Thank you. The next question comes from Rasmus Engberg from Kepler. Please go ahead.

Hi, guys. Just two questions from my side on Raid. Firstly, can you shed some light on the Assassin's Creed takeover? I think it looks to me like one of the bigger ones I've ever seen in Raid.

Yeah, no, it was an amazing integration and I think the team did actually excellent to bring it into the game and really get the best out of that IP. So in that sense, yes, it was good. I don't... I'm not sure if I would carry the biggest one. I think they are, in every IP collaboration they do, they become better on understanding how do you actually get the different IPs to marry in the best sort of worlds and also bring the player the best experience. So I think that is a journey for the team and that's where we're getting better and also then on our side also making sure we get the best value out of those IP collaborations as well. I don't know if you have anything else to add.

Yeah, no, I think one of the... Clearly, IP integrations has been a hugely successful growth driver for RAID, and it will continue to be a core part of the RAID strategy going forwards. And one of the exciting things has been that if we look back at the major IP integrations over the last 12 to 18 months, the team have tested with slightly different ways. They actually monetised those IP integrations as well, and so we're really able to kind of continue to optimise those going forward as we look at the slate of future IP integrations, because they are not all monetised in the same way.

And I noticed that DRAID now is pushing an app that is basically outside of Google's Play Store. Has that been any part of increasing the DTC payments, or is it something else that pushes this?

Yeah, so essentially there is the kind of player in play launcher, and then there has been the separate direct payments, which is kind of outside of the IOS ecosphere, which has been the two largest drivers of the increased DTC contribution within RAID specifically.

Right. Okay. And are you going to come back in Q1 and give us a full year guidance? Is that sort of a fair assumption?

Yeah, no, I think normally we give an outlook more in Q1 versus Q4. I mean, I think recently we gave an updated sort of mid-term guidelines, which is rather fresh. So you should expect us in Q1 to give a little bit more clarity on the 2026 in isolation.

Very good. Thank you.

Thank you.

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Thank you very much. So we only have one question on the digital Q&A and rephrasing it slightly. So we have had a declining equity per share for a while. So when will the growth that we're seeing be converted into bottom line profitability and how should we think about that?

Well I think it's worth noting that obviously we do have kind of elevated levels of PPA due to some of the M&A transactions that we've done and also as we do look at some of the financial net and non-cash items and that's why we do very much focus on our adjusted net income rather than kind of underlying reported net income. But as we do look forward as to if you take our medium term growth guidance and if you do translate

our growth our margin and our cash conversion then that does take us to a kind of path to as you call it kind of underlying net profitability thank you very much then moving on to the comments made about play simple is there anything else that you can add about the timing within this year

No, I think that it's fair to say there is always we would like to progress as soon as we can. So we always have an urgency in the execution. But at the same time, you need to make sure you follow the regulatory routes and the different milestones. So I think it's probably fair to expect there will be more tourists the second half of the year than the first half of the year. But we will come back as we have more information and we make sure we do it in a correct but expedient manner.

Thank you very much. Then continuing on the Play Simple topic, is there anything we can add about how the potential proceeds will be prioritised? Would they primarily be used for further M&A within the casual district or would we see a special dividend or accelerated share buybacks for MTG shareholders? Or maybe all three alternatives are on the table.

Yeah, I was going to say, I think a couple of things. One is that from a regulatory and other purposes, it's premature for us to provide any commentary around kind of the actual proceeds that we'd be planning on realising or the use of those proceeds. So I hope you can appreciate this point in time that's limited that we can say. But as part of the preparedness study, we have been evaluating both actually what the actual offer structure at the IPO could be and should there be any direct proceeds from a secondary sale, what could be a potential utilization of those proceeds. So we are evaluating all options and have a view, but it's premature at this stage to give any further color. Thank you.

Then moving over to MTG's net debt. What is your target net debt to EBITDA ratio for the end of 2026? How do you think about that?

So whilst we don't give explicit kind of leverage guidance, as we communicated at the Capital Markets Day, we are very much focused on making sure that we do maintain an efficient balance sheet, which does mean that we do have a levered balance sheet. But that needs to be taken into the context as we continue to evaluate how we can deploy capital against not only organic growth initiatives, but also inorganic growth initiatives. And then per the prior question, potentially any overlay from a potential play simple IPO as well. And so therefore, whilst at this stage we were not going to be giving specific 2026 leverage guidance, we would make sure that we want to end up in a levered position. But exactly what levered position does look like depends upon the place simple potential IPO and or any M&A we take through the course of the year.

Thank you very much. We have no further questions at this stage. Therefore, I want to thank our speakers. I want to thank our guests. And we hope to see you again at the next opportunity. Thank you.