Modern Times Group (MTG) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 results, with 9% organic revenue growth in Q4 and strong game performance across studios.

• Net sales reached SEK 1.7 billion in Q4, up 8% year over year and 6% in constant currencies; full-year sales up 3%.

• Delivered on full-year 2024 outlook, supported by live-ops, content initiatives, and a healthy pipeline of new games.

• Announced acquisition of Plarium, expected to close imminently, marking a major strategic milestone and catalyst for future growth.

Financial highlights

• Adjusted EBITDA for Q4 was SEK 455 million, a record and up 4% year over year; full-year Adjusted EBITDA up 8%.

• Adjusted EBITDA margin was 27% in Q4 and 28% for the full year, at the upper end of guidance.

• Free cash flow of SEK 288 million in Q4 and SEK 1.2 billion for the year; cash conversion at 71%.

• Record profits in Q4 driven by scaled revenues and efficient cost control.

Outlook and guidance

• Expect to maintain healthy user acquisition (UA) spend levels in Q1 2025, with potential for continued elevated UA if market conditions allow.

• Updated outlook for 2025 to be provided with Q1 results, with a broader outlook at Capital Markets Day post-Plarium integration.

• Marketing environment in early 2025 slightly weaker than expected, but momentum from late 2024 supports ongoing investment.

• SEK 400 million share buyback program running until April 2025.