Modern Times Group (MTG) Q4 2024 earnings summary

Executive summary

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

• Total Q4 sales reached SEK 1,693 million, up 8% year over year in reported currencies and 6% in constant currencies; full year sales up 3%.

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

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

• Plarium acquisition closing is imminent, anticipated as a transformative catalyst for future growth.

Financial highlights

• Adjusted EBITDA margin was 27% in Q4 and 28% for the full year.

• Free cash flow in Q4 was SEK 288 million; cash conversion at 71% for 2024, above target range.

• User acquisition (UA) spend hit an all-time high in Q4 at SEK 680 million, representing 40% of revenues.

• Net financial items included SEK 359 million in other financial items, mainly non-cash FX and revaluation effects.

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

Outlook and guidance

• Early 2025 shows continued healthy UA scaling, with Plarium onboarding and a slightly weaker marketing environment in January.

• Guidance for cash conversion remains at 50%-60% long-term, expecting some reversal of recent positive working capital effects.

• SEK 400 million share buyback program running until April 2025; new mandate to be sought at 2025 AGM.

• Updated outlook for 2025 to be provided with Q1 results; broader outlook at Capital Markets Day in Q3.