MTG reports 7% YoY growth in Q4 backed by strong mobile performances and strategic acquisitions
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Modern Times Group recorded a 7% year-over-year growth in net sales, reaching $155 million, driven by 9% organic growth and a 6% increase in constant currencies, according to the firm’s Q4 2024 financial results.
User acquisition spending in Q4 amounted to $62, representing 40% of revenues, up from 38% in the previous year.
The tax expense amounted to -$8 million, leading to a total net income of -$22 million. Cash flow from operations was $30 million, and cash and cash equivalents at the period’s end stood at approximately $324 million.
Steady revenue growth in FY 2024
For the full year of 2024, MTG recorded a 3% YoY increase in net sales, reaching $550 million. UA spending slightly decreased to $203 million, accounting for 37% of revenues, down from 39% the previous year.
Adjusted EBITDA rose by 8% to $152 million, resulting in an adjusted margin of 28%, up from 27% last year. Reported EBITDA was $135 million, and EBIT was $82 million.
Net financial items totalled -$66 million, with an interest income of $12 million. The company reported a net loss of $19 million.
Cash flow from operations was $122 million. Cash and cash equivalents at the end of the period amounted to $324 million. MTG said that it successfully met its 2024 outlook.
Mobile drives Q4 success
“I am proud and happy to report a strong Q4,” said Modern Times Group president and CEO Maria Redin. “We ended 2024 on a high note and delivered on our full year guidance.”
“Our organic sales uplift was driven by an outstanding performance from Snowprint, a very strong quarter from InnoGames and good momentum from PlaySimple, driven by geographical expansion through their localised word games and new casual titles.”
Mobile games continue to be a core contribution to MTG’s growth strategy, with performances from Snowprint, InnoGames and PlaySimple. In addition, its portfolio has grown through new game launches and with the acquisition of RAID: Shadows of Legends creators Plarium.
“In Q4 we also took a significant step towards our future as a leading international gaming group with relevant scale by signing the agreement to acquire Plarium, the makers of the international mobile hit RAID: Shadow Legends. We expect to close the deal in the next couple of weeks.” Continued Maria.
The firm said its strong growth from Q3 2024 was also impacted by the timing of third-party platform revenues. However, digital ad pricing remained relatively flat in Q4, with a slight decrease in eCPM uplift after Thanksgiving compared to 2023.
