Modern Times Group (MTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked a historic milestone with the closing and consolidation of the Plarium acquisition, nearly doubling total revenues and expanding the games portfolio to 47 live titles.

• Achieved 6% organic growth and a 77% year-over-year net sales increase, driven by new games, strong live-ops, and geographical expansion of key franchises.

• Adjusted EBITDA rose 56% year-over-year to SEK 616 million, with a 24% operating margin, despite increased marketing investments.

• User acquisition spend increased 26% for original studios, representing 38% of net sales.

• Plarium contributed over SEK 1 billion in Q1 revenues, with Raid: Shadow Legends delivering record engagement and revenues.

Financial highlights

• Net sales surged 77% year-over-year to SEK 2,557 million (6% organic growth), with 79% growth in constant currencies.

• Adjusted EBITDA reached SEK 616 million (up 56% year-over-year), with a 24% margin.

• Free cash flow for Q1 was SEK 143 million, with a 56% cash flow conversion for the 12-month period.

• Net income was SEK 65 million; operational net income excluding non-cash M&A items was SEK 377 million.

• Net financial debt at period end was SEK 2,493 million; leverage ratio 1.66x.

Outlook and guidance

• Full-year 2025 organic revenue growth is guided at 3–7%, supported by strong Q1 and momentum into Q2.

• Adjusted EBITDA margin for 2025 expected between 21–24%, including both original operations and Plarium.

• Margin range will depend on UA investment efficiency and scaling of new games and geographic expansion.