Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MAG Interactive AB (OSTO:MAGI, Financial) experienced a smaller-than-expected revenue dip during the summer months, indicating strong product performance.
- The company successfully launched new features in QuizDuel, such as the Card King game mode, which has positively impacted the in-game economy.
- The soft launch of Crozzle, a multiplayer crossword game, shows promising retention and monetization metrics, with ongoing testing for a potential global launch.
- MAG Interactive AB (OSTO:MAGI) maintains a stable and profitable operation, even with reduced user acquisition (UA) spending.
- The company is focusing on modular game development, which is expected to enhance quality and speed to market for new games.
Negative Points
- MAG Interactive AB (OSTO:MAGI) experienced a year-over-year decline in net sales, attributed to lower UA spending.
- Daily Active Users (DAU) and Average Revenue Per Daily Active User (ARPDAU) have decreased compared to the previous year.
- The company faces challenges in scaling UA investments, which is crucial for future growth.
- The global launch of Crozzle is not yet ready, indicating potential delays in realizing its revenue potential.
- MAG Interactive AB (OSTO:MAGI) has not yet expanded the Card King feature beyond German-speaking markets, limiting its immediate revenue impact.
Q & A Highlights
Q: Has anything changed regarding your search for acquisitions? You did not mention M&A in the report.
A: No, our approach to M&A remains unchanged. We are still actively looking for acquisitions that fit well with our portfolio and add value to MAG. It's a long-term strategy, similar to launching a new game, where we need to ensure the right fit before proceeding. - Daniel Hasselberg, CEO
Q: Will the Card King event launch in other markets, too?
A: It's too early to confirm, but it's likely that we will expand to other languages. Currently, our focus is on the German-speaking markets, which are significant in terms of audience and revenue. We need to balance content creation with profitability before expanding further. - Daniel Hasselberg, CEO
Q: What does Crozzle global launch entail or mean?
A: A global launch is now a gradual process rather than a large-scale marketing push. We will gradually increase marketing spend and expand localization, starting with the SEK market. The focus will be on the US initially, with further localization to follow. - Daniel Hasselberg, CEO
Q: Is Wordzee getting better LTV, and do you think you can scale UA on it, or should we assume Crozzle is where the potential is?
A: We see potential in both Wordzee and QuizDuel. Increased UA spend could come from these games even if Crozzle is launched. Wordzee has had fluctuating UA investment levels, and new updates or creatives could reignite growth. - Daniel Hasselberg, CEO
Q: Your strategy revolves around modular game making, what does it mean in practice?
A: Our modular approach involves using shared components across games to increase efficiency and quality. By having common features like leaderboards run on the same platform, we can speed up development and improve the core experiences of our games. - Daniel Hasselberg, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
