MTG organic revenues grew 3% year over year, driven by strong results from PlaySimple. UA spend was up year over year following the consolidation of Snowprint, but was down slightly on an organic basis, as PlaySimple spread out their marketing investments across the quarters of the year. We delivered a strong adjusted EBITDA and high operating margins of 28% in Q4, on the back of growth and operational leverage combined with a more balanced marketing approach. We repurchased a total of
Financial highlights Q4 - Net sales increased by 13% to
SEK 1,571 (1,388) million year over year. Sales were up by 3% year over year organically and would have increased 7% if Snowprint Studios ("Snowprint") revenue had been included since Q4 2022 -
UA spend of
SEK 600 (559) million corresponding to 38% (40) of revenue -
Adjusted EBITDA of
SEK 439 (299) million with an adjusted EBITDA margin of 28% (22) -
Reported EBITDA of
SEK 420 (304) million and EBIT of SEK 259 (121) million -
Net financial items of
SEK -187 (-391) million of which SEK -161 million related to revaluation of the earnout liability -
Tax amounted to
SEK -184 (-61) million -
Total net income of
SEK -112 (-348) million and total basic earnings per share of SEK -0.91 (-2.79) -
Cash flow from operations in the quarter of
SEK 292 (230) million including a realized currency exchange loss amounting to SEK -6 million and cash conversion of 58%
Financial highlights full year 2023 - Net sales increased by 5% to
SEK 5,829 (5,537) million and were down -2% organically -
UA spend of
SEK 2,254 (2,135) million corresponding to 39% (39) of revenue -
Adjusted EBITDA of
SEK 1,548 (1,373) million with an adjusted EBITDA margin of 27% (25) -
Reported EBITDA of
SEK 1,439 (1,229) million and EBIT of SEK 885 (558) million -
Total net income of
SEK 164 (6,475) million and total basic earnings per share of SEK 1.33 (56.26) -
Cash flow from operations of
SEK 1,258 (868) million including a realized currency exchange gain amounting to SEK 135 million and cash conversion of 59% -
Cash and cash equivalents at the end of the period amounted to
SEK 2,956 (4,733) million. Long-term bank deposits amount to SEK 124 million
Financial overview
- Net sales increased by 5% to
SEK 5,829 (5,537) million and were down -2% organically -
UA spend of
SEK 2,254 (2,135) million corresponding to 39% (39) of revenue -
Adjusted EBITDA of
SEK 1,548 (1,373) million with an adjusted EBITDA margin of 27% (25) -
Reported EBITDA of
SEK 1,439 (1,229) million and EBIT ofSEK 885 (558) million -
Total net income of
SEK 164 (6,475) million and total basic earnings per share ofSEK 1.33 (56.26) -
Cash flow from operations of
SEK 1,258 (868) million including a realized currency exchange gain amounting toSEK 135 million and cash conversion of 59% -
Cash and cash equivalents at the end of the period amounted to
SEK 2,956 (4,733) million. Long-term bank deposits amount toSEK 124 million
Financial overview
(SEKm) |
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Continuing operations | ||||
Net sales | 1,571 | 1,388 | 5,829 | 5,537 |
EBIT | 259 | 121 | 885 | 558 |
EBITDA | 420 | 304 | 1,439 | 1,229 |
Adjusted EBITDA | 439 | 299 | 1,548 | 1,373 |
Net income | -112 | -331 | 164 | 252 |
Basic earnings per share (SEK) | -0.91 | -2.65 | 1.33 | 2.70 |
Diluted earnings per share (SEK) | -0.91 | -2.65 | 1.32 | 2.69 |
Discontinued operations | ||||
Net income | - | -17 | - | 6,223 |
Total operations | ||||
Net income | -112 | -348 | 164 | 6,475 |
Basic earnings per share (SEK) | -0.91 | -2.79 | 1.33 | 56.26 |
Diluted earnings per share (SEK) | -0.91 | -2.79 | 1.32 | 56.06 |
Growth, continuing operations | ||||
Sales growth | 13% | 9% | 5% | 41% |
Changes in FX rates | 1% | 13% | 5% | 9% |
Sales growth at constant FX | 12% | -4% | 0% | 32% |
of which organic growth | 3% | -4% | -2% | -4% |
President & CEO's comments
MTG delivers on full year guidance with record adjusted EBITDA and strong cash conversion, reports 7% sales growth in Q4
We reported healthy Q4 revenues with solid organic growth of 3%. Our growth was 7% when including our newly acquired and fast-growing studio, Snowprint, in the year over year calculations on a comparable basis. On a reported basis, our sales were up 13% year over year in the quarter. We also delivered on our full year outlook, with -2% organic growth excluding currency effects for the full year following healthy organic growth in the second half of 2023.
Our organic growth in the quarter was driven by PlaySimple, which successfully continued to scale both their established portfolio and new games.
Snowprint, which we acquired on
A quarter of strong margins on the back of strong content and disciplined UA spending
We invested a total of
When excluding Snowprint, our total UA spend was down slightly both year over year and sequentially. This primarily reflected lower UA spend in Q4 for PlaySimple, both year over year and sequentially, driven by the studio actively spreading their UA more evenly across each of the quarters of the year.
We reported a significant 47% year over year increase in total adjusted EBITDA to
We delivered a cash conversion of 58% in Q4 and 59% for the full year 2023. This reflected the continued high cash generation levels in the business. The cash conversion for the full year was at the top end of our guided range of 50-60%.
We enter 2024 confident in our ability to drive growth and utilize our cash to create shareholder value
We expect the North American and European in-app purchase market to have continued the positive recovery trend we observed in the first nine months of the year, with mid-single digit growth in Q4, driven primarily by the casual segment. We also expect our IAP market to have been up slightly on a sequential basis. This means that we have entered 2024 supported by somewhat more positive IAP market dynamics, even if some of our specific genres remain challenging. We have reported organic growth two quarters in a row and are confident about our prospects during 2024, driven by our portfolio of high-quality IPs.
We have a very exciting pipeline of new games planned for 2024 and beyond. This includes Hutch scaling Forza Customs, which was launched in Q4, as well as the upcoming launches of NASCAR Manager from Hutch, Bloons Card Storm and another title from Ninja Kiwi, more new games from PlaySimple and new initiatives from
We are happy to have found a solution which will help
We continue to have a strong balance sheet, which will help us explore opportunities for accretive M&A during the year. M&A continues to be an important part of our overall growth strategy and we are well-positioned to attract top talent and high-quality studios to our
We are pleased to have returned nearly
We are proud to have delivered a strong 2023 and to end the year on a high note. We enter 2024 with a healthy competitive position and I believe that we have the right people and the right games to continue delivering profitable growth to our shareholders.
Thank you for following our progress and speak soon!
Group President & CEO,
2023 outlook delivered
MTG's 2023 outlook was for full year sales to be within the range of -3% to +2% after adjusting for currency effects. The outlook for adjusted EBITDA margin for the year was 25% to 27%, slightly above our long-term outlook of 23% to 25%. MTG subsequently reported an organic growth of -2% and 27% adjusted EBITDA margin for the full year 2023.
The outlook for 2023 excluded the contribution from Snowprint, which was acquired on
We expect to provide an annual outlook in our Q1 results in April.
Our long-term outlook is for an organic revenue CAGR of 7% to 10%, with an estimated average adjusted EBITDA margin of 23% to 25%. We also continue to expect to deliver post-tax cash conversion levels of 50-60% on an annualized basis.
Shareholder information
MTG's Annual General Meeting 2024
The Annual General Meeting will be held on
Nomination Committee ahead of Annual General Meeting 2024
In accordance with the resolution by the Annual General Meeting of MTG shareholders regarding the procedure for the Nomination Committee, a Nomination Committee has been convened to prepare proposals for the 2024 Annual General Meeting.
The Nomination Committee comprises:
In line with past practice, the members of the Committee have appointed
Please see the following section on MTG.com for information about the work of the Nomination Committee.
Shareholders wishing to propose candidates for election to the MTG Board of Directors should submit their proposals in writing to agm@mtg.com or to the "Company Secretary",
Financial calendar
Item | Date |
Q1 2024 Interim Financial Results report | |
Annual General Meeting 2024 | |
Q2 2024 Interim Financial Results report | |
Q3 2024 Interim Financial Results report |
Questions?
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This information is information that
This interim report contains statements concerning, among other things, MTG's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent MTG's future expectations. MTG believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to MTG's market position; growth in the gaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of MTG, its group companies and the gaming industry in general. Forward-looking statements apply only as of the date they were made, and, other than as required by applicable law, MTG undertakes no obligation to update any of them in the light of new information or future events.
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