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MAG Interactive revenue falls by 25% Y/Y as it places “big bet” on new crossword game Crozzle

Swedish publisher pays up tax bill on research and development deductions over the last few years
MAG Interactive revenue falls by 25% Y/Y as it places “big bet” on new crossword game Crozzle
  • Daily active users and monthly active users fell by 11% and 17% year-over-year, respectively
  • R&D payments cost $1.52 million
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Net sales for MAG Interactive fell by 25% year-over-year to 71.88 million kr ($6.5 million) in Q2 as the company eyes a new big bet for its future growth.

In its latest financial report for the period of December 2023 to February 2024, the company reported a loss of 1.9m kr ($173.9k) in earnings before tax. However, it also stated adjusted EBITDA for the period was 19.7m kr ($1.79m) a rise of 133% Y/Y.

The company said previous research and development deductions it had claimed between the period of January 2021 to July 2023 had been rejected during the quarter.

As a result, MAG Interactive has made a one-off repayment of the entire amount of the previously made deductions, which totals 16.8m SEK ($1.52m), plus an additional 618k kr ($56.2k) in interest. The developer said it was evaluating whether to appeal the decision, as it still believes it is entitled to the claims.

Big bet

Average revenue per daily active user for the period stood at ¢6.6, a decline of 15% Y/Y. Daily active users were down 11% to 1.2 million, while monthly active users fell by 17% to 3.1m.

Looking forward, MAG Interactive CEO Daniel Hasselberg said had placed a “big bet” on its soft-launched crossword game Crozzle to be its next global launch.

He said the title was the first game to come out of its “modular game making process” and had shown promising early metrics in line with expectations. The game will remain in soft launch for a few more months before the team makes the final call on a full release, with the aim to launch before its next quarterly report.

“Our strategic focus continues to bear fruit, evidenced by sustained profitability and robust cash flow. In a world where some companies struggle with debt exposure and challenging balance sheets, we are profitable and debt free,” said Hasselberg.

“Crozzle’s positive soft launch development as well as the exciting roadmaps for continued improvements of our live games make for a strong first half of our financial year from a product perspective. Our ambition now is to translate this momentum into renewed growth of UA investments to take us closer to our long term goal of 500m kr of yearly revenues.”