Modern Times Group (MTG) investor relations material

Strategic direction and transformation

• Emphasizes a buy-and-build strategy focused on acquiring studios with evergreen games, strong financials, and cultural fit, resulting in a global footprint and over 90 live games entertaining 9 million daily users.

• Transformation includes the integration of Plarium, leading to the creation of two distinct divisions (Midcore and Casual) to unlock synergies and value, with a focus on shared tech, tools, and services.

• The company is evolving its brand and internal culture, engaging employees in the rebranding process and reinforcing its commitment to growth and relevance in entertainment.

• Plans to further expand the gaming village by welcoming new studios and potentially adding a third district in the future.

• New district-based organizational structure to be implemented from January 2026.

Financial guidance and performance

• Updated 2025 guidance: organic growth of 7–9% (up from 3–7%), total reported revenue of SEK 11.4–11.7 billion, and EBITDA margin of 20–24%.

• Medium-term targets: organic growth of 3–7%, EBITDA margin above 24%, and unlevered cash conversion over 60%.

• Achieved previous goal of doubling revenue and EBITDA, driven by organic growth, accretive M&A, and operational synergies, without shareholder dilution.

• Strong cash generation and disciplined capital allocation, with SEK 14 billion generated since 2022, SEK 4 billion returned to shareholders, and SEK 10 billion invested in M&A.

• Announced a new SEK 400 million share buyback program running until 15 May 2026.

Business developments and operational initiatives

• Midcore District (80% of revenue) leverages shared services, proprietary tech, and unified analytics/marketing platforms to drive efficiency, with a $20 million cost-saving program targeted by end of 2026.

• Focus on evergreen titles like Raid: Shadow Legends and Forge of Empires, with long-term engagement and high monetization; new games pipeline aims for 2–4 soft launches per year.

• Casual District, led by PlaySimple, is scaling through operational excellence, AI-driven platform (Little Engine), and localization, with 70% of DAU growth last year from non-English markets.

• AI is deeply embedded across art, code, analytics, and marketing, delivering measurable productivity gains and enabling faster iteration, content creation, and decision-making.

• Direct-to-consumer initiatives (web stores, proprietary platforms) are expanding to reduce platform fees and improve margins, with further growth expected as regulations evolve.