MAG Interactive (MAGI) Q3 24/25 earnings summary

Executive summary

• Q3 saw significant developments, with most momentum building in June, setting up a strong start for Q4.

• Crozzle (also referred to as Crosshair) scaled rapidly and became the third largest title in the portfolio by June, contributing significantly to growth.

• Over 350 million downloads achieved across the portfolio, reflecting strong user engagement.

• The company is accelerating its pace of new game launches, leveraging a modular platform for faster development and early monetization.

• Net sales for Q3 2024/25 were 62,968 KSEK, down 10% year-over-year; adjusted net sales decreased 7% to 62,968 KSEK.

Financial highlights

• Net sales decreased 10% year-over-year, equivalent to a $7 million drop, but in USD terms, net sales increased 1% organically year-over-year.

• ARPDAU reached an all-time high of $0.071 (7.1 US cents), up 14% year-over-year.

• Adjusted EBITDA for the quarter was 12,442 KSEK, a 32% decrease from the prior year.

• Ended the quarter with 94 million SEK in cash and cash equivalents.

• Adjusted EBITDA margin for Q3 was 20%, down from 26% last year.

Outlook and guidance

• Focus remains on scaling Crozzle, especially in English-speaking markets, with plans to localize for major European languages in 2025.

• Two new word games are set for market testing in Q4, and team play will be introduced to Quizduel.

• Continued investment in user acquisition is expected, with a natural pattern of revenue growth and short-term margin pressure.

• Targeting 500 million SEK in revenue and 20% EBIT, with UA spend expected to be around 20% of revenue at maintenance levels.

• Underlying growth remains strong, though FX volatility may mask short-term results.