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Sweden's MTG Q3 sales meet estimates, adjusted EBITDA beats

By Reuters News


Overview

  • Sweden mobile gaming group's Q3 net sales stable yr/yr, meeting analyst expectations

  • Adjusted EBITDA up 3% to SEK 693 mln, beating analyst expectations

  • Net income rose to SEK 149 mln from SEK 39 mln a year earlier


Outlook

  • MTG expects 2026 pro forma revenue growth towards the lower end of 5-8% range

  • Company sees 2026 group adjusted EBITDA margin towards the upper end of 22-24% range

  • Company anticipates unlevered cash conversion to remain materially above medium-term guidance in 2026


Result Drivers

  • USER ACQUISITION SPEND - Group user acquisition spend rose 6% yr/yr, driven by higher marketing in both Casual and Midcore Districts

  • CASUAL GAMES GROWTH - Revenue growth in the Casual District was driven by scaling of Crossword Go, Tile Match and Cryptogram, as well as growth in select other titles

  • MIDCORE TITLE PERFORMANCE - Midcore District revenue was supported by RAID: Shadow Legends, which grew revenues by 9% yr/yr pro forma in Q2


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Meet

SEK 2.99 bln

SEK 2.99 bln (5 Analysts)

Q3 EPS

SEK 1.25

Q3 Net Income

SEK 149 mln

Q3 Adjusted EBITDA

Beat

SEK 693 mln

SEK 683.42 mln (5 Analysts)

Q3 EBIT

SEK 318 mln

Q3 EBITDA

SEK 688 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Modern Times Group MTG AB (publ) is SEK163.50, about 34.2% above its November 4 closing price of SEK121.80

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Nov 4 - Swedish mobile games maker G5's Q3 revenue falls, margin hits record on cost cuts, direct payments

  • Nov 3 - Swedish game developer Hacksaw Q3 revenue rises 12%

  • Nov 3 - Sweden's Truecaller posts Q3 loss due to provision charge in India, sales drop


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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