Modern Times Group MTG AB (publ)

Good morning, everyone, and thank you for joining us. Today, we have a slightly expanded agenda for you. We will start with a normal Q1 presentation and Q&A hosted by our CEO, Maria Redin, and our CFO, Nick Hopkins. After this, the CEO of our mid-core district, Oliver Bullos, will join us on the stream to share an update and answer your questions on the progress of our AI adoption in the mid-core district. We're also, of course, making really great, exciting strides in our casual district, even though we will not focus on that today. When it's time to the Q&A, please use the online form if you want to add questions to the live stream or follow the instructions from the operator if you are dialing in by phone. I will now hand over to Maria. Maria, please go ahead.

Thank you, Anton. And hello, everyone. We've had a great but also intense start of 2026. And there are three things in particular that I'm proud of. The first one is a fantastic set of financial results in Q1, with a record quarter characterized by strong growth, healthy margins and high cash generation. The second is the progress that we made across our key group-wide strategic priorities, namely our rapid pace of AI adaptation and the continued strong increase in contribution from direct-to-consumer revenues. The third is implementation of our new operating model with two gaming districts. In our mid-core district, we continue to make great progress in the evolution of our shared services and platform. Whilst in our cashier district, you may have seen that on the 23rd of April, we filed the draft red herring prospectus for Play Simple, which is a key milestone on the path of a potential listing in the second half of 2026. And achieving all of this at the same time is a strong testament to the strength of our people, the quality of our games and our focus on the strategic execution. But let's now turn to our financial results. We reported total revenues of nearly 3.2 billion krona in Cuba, that is over $330 million, representing a 14% year-over-year pro forma increase and 12% organic growth. Pro forma growth is calculated as if all of the currently owned businesses, therefore in this case, including Plarium, had been consolidated for the entirety of both 2026 and the comparative period in 2025, and that is on a constant currency basis. We continued to find good opportunities to invest in marketing at attractive return levels in Q1, and we therefore invested a total of 1.2 billion krona in marketing in Q1. This was a 17% year-over-year increase in pro forma basis and represented 38% of total revenues. We reported just over 800 million krona in adjusted EBITDA in Q1, that is equivalent to close to 85 million dollars, which is a strong 25% margin. And we also generated 582 million krona in unlevered free cash flow in Q1, which corresponds to a conversion of 78% on a rolling 12-month basis. So let's now start by double-clicking on our revenues. The great momentum from 2025 continued into the start of 2026, and Q1 26 marked our sixth quarter in a row of a strong organic growth at 12%. And as you can see from our report, we now have a greater focus on performer growth because that's reflected in the fact that Plarium was consolidated from the 1st of February 2025, and we would like to include it as if it was for the full year. And performer growth was therefore at 14% for the quarter. This pro forma growth was mainly driven by the very strong quarter for Raid Shadow Legends, as well as the continued growth in Formula 1 Clash in the mid-core district, but also the continued rapid scaling of PlaySimple's new casual games, in particular Crossword Go and Tilematch in our casual district. Our revenues grew 24% year-over-year in reported currencies, which mainly reflected the consolidation of Ethereum partway through the quarter last year. And our revenues were up 37% in constant currencies in the quarter, with a negative currency impact of 13% due to the continued weakening of the US dollar versus the SEC. Let's not drill further down and look at the largest three games in a bit more detail, being Raid Shadow Legend, Fort of Empires and Warhammer 40k Tacticus. These three games accounted for 53% of our total revenues in Q1, with Raid accounting for 41% and Fort of Empires and Tacticus each accounting for 6%. Raid Shadow Legends reported revenues of 1.3 billion krona in the quarter, with an exceptional performer growth of 25% year-over-year. This growth was driven by an intense schedule of strong performing events in the quarter. The team kicked off the year with an Assassin's Creed IP partnership, offered an event introducing a brand new in-game faction, and celebrated Raid's 7th anniversary with the Creator event. The game team also continued to drive a strong pipeline of live ops throughout the quarter. And as a result, we saw high player engagement level and a strong increase in average revenue per daily active user in the quarter, which had its flow through impact to profitability, as Nick will touch upon later. It's so important to note that Raid's Q1 release schedule and the pace was more intense than a typical quarter. And as our focus is on the long-term health of the game and on ensuring that we continue to balance engagement, retention and monetization, we have therefore planned for a lower pace on new content over the coming months before then ramping up again during the second half of the year. Revenues in Forge of Empires were down 30% year-over-year in constant currencies to 184 million kronor. The main driver of this performance was a shortage of new content aimed for our established long-term player community, as the team was probably too focused in the quarter to test and drive early retention and conversion. This is something the team is now working to actively address, and we do expect new content aimed for our veteran players coming through in Q3 and onwards. It's worth remembering that Forge celebrated its 14th anniversary in 2026, and as such, it is a mature game, but it also continues to deliver strong profitability and cash generation for us. Revenues in Warhammer 40k Tacticus were up by 1% year-over-year in constant currencies to 174 million krona in the quarter. The underlying performance of the game, which is largely a US dollar-driven game, was strong with double-digit underlying growth. However, this was negatively impacted by exchange rate movements as it relates to Swedish Krona reporting. The team continued to add factions and content and delivered an ambitious live-op schedule with multiple concurrent events running in-game throughout the quarter. Revenues from our other games were up 25% year-to-year, mainly driven by the strong performance of Play Simple and continued growth in Formula 1 Clash and Heroes of History. Next, let's take a look at our user acquisition dynamics and our districts and financials. And for that, I will hand over to Nick.

Thank you very much, Maria. And hello, everyone. So we invested a total of 1.2 billion sec in marketing in the first quarter, which was a 25% year-over-year increase on a reported basis, driven largely by the consolidation of Plarium from February 2025. On a pro forma basis, our UA spend was up 17% year-over-year as we continue to find opportunities to invest in marketing our games at attractive return levels. UA spend was up 3% in the mid-core district on a pro forma basis, driven by the very strong momentum in RAID that Maria just discussed, as well as from a strong quarter for F1 Clash. Their casual district scaled their UA by 48% year-on-year in constant currencies, in particular to support the rapid scaling of our new games Crossword Go and Tar Match. Total UA spend represented 38% of total revenues in the quarter. Now let's take a look at our profitability. We reported a record adjusted EBITDA of 802 million SEC in Q1, which is equivalent to close to 85 million US dollars and represents a 30% increase year over year. Just like our revenues, the continued significant weakening of the US dollar against the SEC has a flow through impact on our profits, which would have been higher in constant currencies. On an LTM basis, our adjusted EBITDA has therefore now surpassed 2.8 billion SEC. Despite our continued marketing investments that I just discussed, we delivered an adjusted EBITDA margin of 25% in the quarter. This very strong margin performance in the quarter reflects three main factors. First, it reflects the inherent strength and high profitability of our evergreen titles like Raid, Forge of Empires, F1 Clash and Bloons TD6, to name a few. Second, it reflects the continued increase in DTC revenue contribution driven by our DTC strategic initiatives, which Maria will discuss in further detail shortly. And then finally, as Maria already mentioned, Raid had an exceptional quarter, but it is worth noting that this performance was underpinned by highly successful in-game content and events that resonated with the player base, leading to an increase in art DAO, which therefore had a direct flow through to impact to the bottom line within the quarter. The casual district also delivered very healthy margins in the quarter, despite continued UAE investments to scale their new games. Our adjustments to reported EBITDA in the quarter amounted to 49 million SEC, and these mainly comprised 38 million SEC of M&A transaction costs, primarily from the performance-based revaluation of put call options for Snowprint. As we now report our two gaming districts separately, I also want to go through the results of each district, albeit we have already touched upon the most important dynamics. So the mid-core district reported 10% pro forma growth year over year in Q1, with organic growth of 7%. The district generated nearly 2.5 billion SEC in revenues, with an adjusted EBITDA of 698 million SEC and a 28% adjusted EBITDA margin, up from 25% in Q1 2025. Growth was primarily driven by the strong performance of Raid, as well as F1 Clash and Heroes of History, which more than offset the decline in Forge of Empires and certain other games. As mentioned, the strong margin performance reflects the strength of our mid-core portfolio, but was also driven by the increase in DTC contribution to 49% of mid-core revenues, up from 42% in Q4-25, as well as the performance of the events and live ops in RAID in Q1. And as discussed, the release schedule for key content in RAID will be a bit more measured in Q2 and Q3 before re-accelerating, and therefore that last aspect was more of an in-quarter benefit. The mid-core district's daily active user levels were broadly flat year over year at 4.1 million and up slightly from 3.9 million at the end of Q4 last year. However, average revenues per daily active user were up significantly year over year and stable from Q4 last year, which reflected the very strong performance of RAID in particular, as well as F1 Clash. And now let's turn to the Casual District. The Casual District reported revenues of nearly 700 million SEC in Q1, up 14% in reported currencies and up 29% on an organic basis. This outstanding growth was primarily driven by the continued rapid scaling of new games, both within word games such as Crossword Go, as well as the expansion into the adjacent non-word genres such as tilematch. Growth also came from several of PlaySimple's established titles. It's worth noting that the rapid integration of AI into PlaySimple's technology platform called Little Engine has supported time to market for new content, further enabling the successful scaling of new titles and this growth. The district reported an adjusted EBITDA of 166 million SEC in Q1, corresponding to a healthy 24% margin, despite UA spend increasing by 48% in constant currencies to underpin this growth. As noted in the report, casual district operating expenses had some one-off benefits in the quarter, driven by currency exchange gains and some one-off cost adjustments. Casual district daily active users were stable year over year at 4.8 million, but ARPDAR was up 15% year over year. And this dynamic reflects the evolution of PlaySimple's portfolio, with the rapid scaling of new games, which have better monetisation dynamics and are an increasing part of the mix. The improved monetization of our new games is empowered by Little Engine, combined with our disciplined approach to marketing. So I'll now hand back over to Maria to talk about two of our key strategic growth initiatives, D2C and AI, before we finish off with cash flow, leverage, and our 2026 outlook.