MAG Interactive saw a 34 per cent year-on-year increase in revenue for its Q3 2020.
From March 2020 to May 2020, the company made 65 million SEK ($6.96 million) in net sales which represents a rise of 34 per cent year-on-year. Furthermore, the games division contributed 31 million SEK ($3.3 million), an increase of 12 per cent.
In terms of ARPDAU, the company experienced a rise of 14 per cent year-over-year to $0.03. However, user acquisition costs came in at 26 million SEK ($2.8 million).
Overall, for the nine months from September 2019 to May 2020, the company made 162 million SEK ($17 million), an increase of 25 per cent year-on-year. Moreover, games saw a growth of 24 per cent having earned 94 million SEK ($10 million).
A strong quarter
"Q3 revenue amounted to SEK 65 million, an increase of 34% compared to the same quarter the previous year. This is the highest turnover in a quarter for MAG since the company went public. Compared to Q2, revenue grew by 28% with the combination of several positive factors leading to the rapid growth. The EBITDA in Q3 lands at MSEK 3.4 compared to MSEK 0.5 during the same quarter the previous year," said MAG Interactive CEO Daniel Hasselberg.
"During the quarter, we had the opportunity to increase the investment in user acquisition for our most recently launched games, Wordzee and New QuizDuel, which led to increased turnover in that part of the portfolio as well. The cost of user acquisition amounted to SEK 26 million in the quarter, which is SEK 12 million more than in Q2. We see increased investment in user acquisition as something fundamentally positive as it lays the foundation for future growth and profits.
"With a strong quarter behind us, we now look forward with excitement to how New QuizDuel and Wordzee will continue to develop during 2020 and beyond."
In January, we caught up with Hasselberg to discuss how the firm has grown over the past ten years.