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MAG Interactive experiences a 25% year-over-year decline in revenue

MAG Interactive saw a 25% year-over-year decrease in net sales, amounting to 71.88 million kr ($6.5 million) in Q2, as it sets its sights on a significant opportunity for future growth. The company's latest financial report for the period spanning December 2023 to February 2024 revealed a loss of 1.9 million kr ($173.9k) in earnings before tax. However, it also noted a 133% year-over-year increase in adjusted EBITDA for the same period, reaching 19.7 million kr ($1.79 million).

During the quarter, MAG Interactive faced challenges as previous research and development deductions claimed between January 2021 and July 2023 were rejected. Consequently, the company made a one-off repayment of the entire deducted amount, totaling 16.8 million SEK ($1.52 million), along with an additional 618k kr ($56.2k) in interest. The developer is considering the possibility of appealing the decision, as it maintains belief in the validity of the claims.

Despite these setbacks, MAG Interactive remains optimistic about its future prospects. Average revenue per daily active user dropped by 15% year-over-year to ¢6.6, with daily active users declining by 11% to 1.2 million and monthly active users falling by 17% to 3.1 million.

Looking ahead, CEO Daniel Hasselberg revealed the company's strategic focus on its soft-launched crossword game, Crozzle, which is positioned to be its next global launch. Crozzle represents the first game to emerge from MAG Interactive's "modular game making process" and has demonstrated promising early metrics aligned with expectations. The game will continue in soft launch for a few more months before a final decision is made regarding a full release, with the aim of launching before the next quarterly report.

Hasselberg expressed confidence in the company's strategic direction, emphasizing sustained profitability and robust cash flow. He highlighted Crozzle's positive soft launch progress and outlined exciting plans for ongoing improvements to live games, setting the stage for a strong first half of the financial year from a product perspective. The company's ambition now is to leverage this momentum to increase user acquisition investments, moving closer to the long-term goal of achieving 500 million kr in yearly revenues.

Source: adapted from an article by Craig Chapple, Head of Content for

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