Modern Times Group (MTG) Q3 2025 earnings summary

Executive summary

• Achieved 15% organic revenue growth year-over-year in Q3 and 10% for the first nine months, with total revenues up 126% in constant currencies, driven by new game launches, live ops, and successful IP integrations, including Plarium consolidation.

• Adjusted EBITDA margin reached 23% in Q3, up 73% year-over-year, with SEK 675 million in adjusted EBITDA for the quarter.

• Strong cash generation with SEK 404 million in cash flow from operations and 60% unlevered cash conversion in Q3.

• User acquisition spend increased 37% year-over-year in Q3, representing 37% of revenues.

• Announced transformation program for cost savings and efficiency, including new group structure and ongoing IPO preparedness for PlaySimple.

Financial highlights

• Q3 net sales were SEK 2,987 million, up 108% reported and 126% in constant currencies year-over-year, with 15% organic growth.

• Adjusted EBITDA for Q3 was SEK 675 million, up 73% year-over-year, with a 23% margin.

• Adjusted net income for Q3 was SEK 39 million; adjusted EPS SEK 9.88 on a rolling 12-month basis.

• Marketing spend was SEK 1.1 billion in Q3, representing 37% of revenues.

• Cash and equivalents at period end were SEK 1,221 million.

Outlook and guidance

• Raised 2025 organic growth outlook to 7%-9% (from 3%-7%), with full-year reported revenues expected between SEK 11.4 billion and SEK 11.7 billion.

• Expecting adjusted EBITDA margin for the full year within 21%-24%.

• Q4 expected to be strong, with guidance implying a slowdown from Q3 but likely to finish at the upper end of the range.

• Medium-term goals: annual gross revenue growth of 3-7%, adjusted EBITDA margin over 24%, and unlevered cash conversion above 60%.