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, driven by new game launches, live ops, and successful IP integrations, with total revenues up 126% in constant currencies due to Plarium consolidation.

• Adjusted EBITDA margin reached 23% in Q3 and year-to-date, with SEK 675 million in adjusted EBITDA, up 73% year-over-year, and 60% unlevered cash conversion for the quarter.

• User acquisition (UA) spend increased 37% year-over-year in Q3, representing 37% of total revenues, with group UA spend up 120% in constant currencies.

• Confident in delivering full-year guidance for organic growth and operating margin, supported by robust performance across both casual and mid-core portfolios.

• Announced new group structure with two Gaming Districts and transformation program for cost savings and efficiency.

Financial highlights

• Q3 net sales reached 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.

• Net income for Q3 was SEK 39 million; basic EPS SEK 0.33.

• Cash flow from operations in Q3 was SEK 382 million; unlevered cash conversion at 60% for the quarter and 46% for the last 12 months.

• Net financial debt at SEK 3,095 million; leverage ratio at 1.15x EBITDA (rolling 12 months).

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 2025 to remain within 21%-24%.

• Q4 expected to be strong but with tough year-over-year comps, especially for Plarium and Raid.

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

• Execution remains on track to deliver on the raised FY 2025 outlook.