Modern Times Group (MTG) Q4 2025 earnings summary

Executive summary

• Achieved record revenues and adjusted EBITDA in Q4 and full year 2025, driven by the Plarium acquisition and strong performance across key franchises, with organic growth of 9.4% for the year and 8% in Q4, exceeding guidance.

• Implemented a new District model and transformation program from 2026, supporting mid-core and casual segments and targeting USD 20 million in annual savings.

• Completed a pre-IPO study for PlaySimple, with preparations underway for a potential listing in India in 2026.

• Four consecutive quarters of organic growth, with strong momentum entering 2026 and a clear strategy for continued growth.

Financial highlights

• Q4 2025 net sales reached SEK 3,123 million, up 84% YoY, and full-year net sales were SEK 11,579 million, both at record levels and in the upper half of guidance.

• Adjusted EBITDA was SEK 717 million in Q4 (23% margin) and SEK 2,648 million for the year, up 58% YoY, both at the top end of guidance.

• Unlevered free cash flow was SEK 878 million in Q4 and SEK 1,723 million for the year, with a 66% cash conversion rate.

• Net income was SEK -62 million for the year, with adjusted net income at SEK 1.4 billion and Adjusted EPS of SEK 11.33.

Outlook and guidance

• Entered 2026 with strong momentum, especially for RAID: Shadow Legends and new game launches, and will provide 2026 guidance in Q1.

• Ongoing transformation in the Midcore District expected to yield over USD 20 million in annual savings by end of 2026.

• IPO of PlaySimple in India targeted for the second half of 2026, with majority ownership intended.