2017/18 MAG INTERACTIVE AB (PUBL) Interim report sep-nov 2017 Interim REPORT SEP–NOV 2017 MAG INTERACTIVE AB (publ) MAG Interactive is a leading developer and publisher of casual mobile games for a global audience. MAG Interactive reaches over 10 million active players every month and the game portfolio consists of ten successful games with over 200 million downloads, including successful titles Ruzzle, QuizClash and WordBrain, all of which have reached #1 spots on the App Store and Google Play. With offices located in Stockholm and Brighton, MAG Interactive’s games are distributed through virtual app stores allowing for global reach with minimum effort. MAG Interactive is listed on Nasdaq First North Premier with ticker MAGI. For more information visit www.maginteractive.com.
mag
z current games word games + trivia games z
games IN SOFT LAUNCH
z our four pillars: live games, new games, publishing, acquisitions z
biggest events of the quarter • Backpacker • FEO • Preparing for IPO
z FEO value creation through optimisation of products + synergies z
MAG Interactive 2017/18 Topics in finance section Quarterly report Q1 • Net sales development • KPI development - DAU, ARPDAU • Marketing spend • Contribution • EBITDA and Adjusted EBITDA • Adjusted EBITDA development
MAG Interactive 2017/18 Definition of presented numbers and periods Quarterly report Q1 Four different sets of numbers are presented • Sep-Nov 2016 MAG Interactive AB (group) only, the Comparison period • Sep-Nov 2017 MAG Interactive AB (group) including Feo Media AB from November 7 2017 • Sep-Nov 2017 Combined MAG Interactive Sep-Nov + Feo Media consolidated from September 1 2017 (Note 4 in the report - Acquisition note). This is a good representation of the Run rate after the acquisition • Sep-Nov 2017 Adjusted for currency effects (Only for Net sales) Same as Sep-Nov 2017, ie with Feo Media included from November 7 2017, but with Net sales as if currencies had not changed in realation to the comparison period. The fifteen most important currencies used in calculation representing 99% of Net sales
MAG Interactive Quarterly report 2017/18 Q1 Net sales development Adjusted for Combined KSEK Currency effects of -5% 70 000 62,335 (+3%) 60,368 55,814 (-8%) 60 000 52,990 (-12%) 50 000 40 000 30 000 20 000 10 000 0 Sep-Nov 16 Sep-Nov 17 Sep-Nov 2017 Sep-Nov 2017 Adjusted for Combined with Currency e ff ects Feo Media consolidated from September 1 2017
MAG Interactive Quarterly report 2017/18 Q1 Kpi development Million US cents DAU ARPDAU DAU ARPDAU 3.0 (+93%) 4.8 3 5 3.8 4 1.8 (+15%) 2.9 2 1.6 3 2 1 1 0 0 Sep-Nov 16 Sep-Nov 17 Sep-Nov 2017 Sep-Nov 16 Sep-Nov 17 Sep-Nov 2017 Combined with Combined with Feo Media consolidated Feo Media consolidated from September 1 2017 from September 1 2017
MAG Interactive Quarterly report 2017/18 Q1 Arpdau US cents 4.8 5 4.7 4 2.9 3 2 1.3 1 0 MAG Interactive MAG Interactive Feo Media Sep-Nov 2017 Sep-Nov 2016 (excl Feo Media) Sep-Nov 17 Combined with Sep-Nov 17 Feo Media consolidated from September 1 2017
2017/18 Summary of net sales development • Net sales is down by 8% adjusted for currency effects • High revenue dependance on currencies with more than 50% sales from USD, SEK is only 4%, total currency effect is -5.3% • UA spend in USD offsets most of that dependency • Net sales run rate with acquisition of FEO Media is up 3% from last year • Marketing spend down by 26%
MAG Interactive Quarterly report 2017/18 Q1 Marketing spend KSEK 30 000 23,975 KSEK 20 000 17,748 KSEK (-26%) 10 000 0 Sep-Nov 2016 Sep-Nov 2017
2017/18 Comments on marketing spend • Working with ROI goals to ensure proper return on investment • 6-9 months target ROI time • Sophisticated models take care of the calculations, highly automated • Lower spend will cause lower DAU • Organics usually convert and spend less and hence lower spend creates downward push on ARPDAU • Fluctuations in UA spend is normal
MAG Interactive Quarterly report 2017/18 Q1 Game Contribution Combined KSEK 40 000 32,082 (+44%) 30 000 22,351 23,236 (+4%) 20 000 10 000 0 Sep-Nov 16 Sep-Nov 17 Sep-Nov 2017 Combined with Feo Media consolidated from September 1 2017 Game contribution = Net sales - Platform fee - Marketing spend
MAG Interactive 2017/18 Adjusted ebitda Quarterly report Q1 Total adjustments in the period Sep-Nov 2017 of 35,0 MSEK (detailed in note 3 in the report) • Final consideration for acquisition of MAG Games Ltd (Delinquent), 714 175 shares issued at ratio value effects profit and loss with 31,4 MSEK (note 3) • IPO costs 2,6 MSEK • Acquisition costs 1,0 MSEK Total adjustments in the period Sep-Nov 2016 of 0 MSEK
2017/18 Adjusted ebitda KSEK Adjusted 8,827 KSEK 10 000 2,452 KSEK +31,405 KSEK 0 − 10 000 − 20 000 +976 KSEK +2,628 KSEK − 30 000 -32,557 KSEK − 40 000 Adjusted EBITDA EBITDA IPO cost Acquisition Delinquent Adjusted EBITDA Sep-Nov 2016 Sep-Nov 2017 adjustment cost adjustment for Sep-Nov 2017 adjustment profit and loss e ff ect
2017/18 Adjusted Ebitda development A bridge from Adjusted EBITDA Sep-Nov 2016 to Adjusted EBITDA Sep-Nov 2017 KSEK +885 10 000 8,827 8 000 6 000 2,361 4,813 -4,302 4 000 -1,291 2,452 -1,667 2 000 0 Adjusted EBITDA Change in Change in Change in Change in Adjusted EBITDA FEO Media Combined EBITDA Sep-Nov 16 Contribution Personel Capitalised Other Sep-Nov 2017 1 Sep to with Feo Media costs work 6 Nov consolidated from September 1 2017
2017/18 summary of contribution and ebitda • Contribution strengthened through acquisition, run rate is up 44% compared to last year • Costs are higher due to investments in organisation and added operational costs from acquisition • Cost synergies related to the acquisition will be realised during 2018
z our four pillars: live games, new games, publishing, acquisitions z
z Q&A z
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