Modern Times Group (MTG) CMD 2025 summary

Strategic transformation and growth ambitions

• Transitioned to a two-district structure (Midcore and Casual) to unlock synergies, empower leadership, and accelerate organic and inorganic growth, with full implementation from January 2026.

• Ambition to double company size and revenue over the mid to long term, targeting SEK 11.4–11.7bn for 2025, leveraging organic growth, platform synergies, and disciplined M&A.

• Plarium acquisition doubled revenue, brought proprietary tech, and enabled a $20M+ cost efficiency program to be realized by end of 2026.

• Exploring a potential IPO of PlaySimple in India to unlock M&A currency and drive consolidation in the Casual District, with MTG intending to remain majority owner.

• Updated brand identity and internal engagement to reflect transformation and growth mindset.

Financial performance and guidance

• Achieved >2x revenue and ~3x adjusted EBITDA since 2021, with three consecutive quarters of mid to high single-digit organic growth and Q2 2025 organic growth at 9%.

• Updated 2025 guidance: organic growth 7–9%, total revenue SEK 11.4–11.7bn, and adjusted EBITDA margin 21–24%.

• Medium-term guidance: 3–7% annual revenue growth, EBITDA margin above 24%, and unlevered cash conversion above 60%.

• Announced SEK 400 million share buyback program running until May 2026, with strong cash generation supporting both acquisitions and shareholder returns.

• Balance sheet expected to delever organically, maintaining net debt below 2.0x EBITDA.

Operational model and innovation

• Midcore District (80% of revenue) leverages shared tech, unified analytics, and centralized marketing to drive efficiency and game performance, with a transformation program targeting over $20M in annualized cost savings by end of 2026.

• Casual District, led by PlaySimple, focuses on operational excellence, platform scalability, and fast-follow strategy, with strong organic growth and cost efficiency from India base.

• AI adoption across art, code, marketing, and analytics is driving faster iteration, cost savings, and improved hit rates for new games.

• Direct-to-Consumer initiatives (web stores, proprietary platforms) aim to reduce platform fees, increase margins, and enable cross-promotion, with DTC share of revenues rising.

• Disciplined approach to new game development, balancing passion and data-driven decision-making, with different launch cadences for Midcore (every 2–3 years) and Casual (multiple per year).