Modern Times Group (MTG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues doubled year-over-year, driven by Plarium consolidation and 9% organic growth, with H1 organic growth at 8%.

• Adjusted EBITDA reached SEK 640 million in Q2, up 50% year-over-year, with a 22% operating margin.

• Strong performance across word games, mid-core strategy/simulation, and racing franchises, notably Warhammer 40,000: Tacticus, Heroes of History, and F1 Clash.

• User acquisition spend increased 52% year-over-year, reaching 36% of Q2 revenues, supporting growth in new and existing titles.

• Plarium consolidation shifted revenue mix and operational KPIs, with 79% of revenues from in-app purchases.

Financial highlights

• Net sales in Q2 were SEK 2,911 million, up 117% in constant currency and 103% reported year-over-year, with a negative currency impact of -14%.

• Adjusted EBITDA for Q2 was SEK 640 million, up 50% year-over-year (63% in constant currency), with a 22% margin.

• Cash flow from operations was SEK 325 million; free cash flow was SEK 280 million, but after earnout payment was SEK -794 million.

• Net income reported at negative SEK 61 million, but operational net income (excluding non-cash/amortization) was SEK 317 million.

• Net financial debt at period end was SEK 3,183 million; total net debt SEK 4,607 million; leverage ratio 1.12x EBITDA.

Outlook and guidance

• Full-year 2025 organic sales growth expected between 3% and 7%, with adjusted EBITDA margin guidance at 21%-24%.

• H1 2025 organic growth was 8% with a 23% operating margin.

• UA spend expected to be heavier in Q1–Q3, easing in Q4 as marketing costs rise and DAU base is built up.

• Continued focus on disciplined marketing investments and new game launches to drive growth.