Modern Times Group (MTG) investor relations material

Executive summary

• Q3 net sales were SEK 2,988m, flat reported and down 2% pro forma; adjusted EBITDA rose 3% to SEK 693m, with a 23% margin.

• Performance held steady against strong comparisons and a challenging user-acquisition backdrop.

Financial highlights

• First-nine-month sales rose 8% reported to SEK 9,112m; pro forma revenue grew 6%.

• 9M adjusted EBITDA increased 14% to SEK 2,202m; Q3 adjusted net income was SEK 431m, up 19%.

• Q3 operating cash flow rose 13% to SEK 431m; unlevered free cash flow was SEK 452m.

• Q3 UA spend was SEK 1,178m, up 6% YoY, and equaled 39% of revenue versus 37% a year earlier.

Outlook and guidance

• FY2026 pro forma revenue growth guidance remains 5–8%, expected toward the lower end; adjusted EBITDA margin guidance remains 22–24%, expected toward the upper end.

• Medium-term guidance remains annual gross revenue growth of 3–7%, adjusted EBITDA margin above 24%, and steady-state unlevered cash conversion above 60%.

• WARP36 consolidation and Google platform-fee changes are expected to reduce Q4 margin by just over 200 bps combined, with Google accounting for the larger impact.

• New PlaySimple games are more likely to scale in 2027; a major Plarium project is expected to be announced in early 2027.