Mag Interactive’s interim report for the period dating September 2022 to February 2023 indicates the company is on track for its highest ever Q2 revenue.
According to the wider December to February report, net sales were up 32% to 96,113 KSEK ($9.2m), average revenue per daily active user was up by 35% to $0.78 and the group’s game contribution for the period was down by 21% to 42,994 KSEK ($4.1m).
CEO Daniel Hasselberg commented on the report and restated the importance of user acquisition to their overall performance. “For an outside observer of our business, it can be valuable to see how quickly profitability bounces back when UA investments do not sequentially increase.
“Our daily active users (DAU) increased by 8% relative to Q1. This is partly thanks to the growing DAU of Wordzee driven by UA and partly thanks to increasing downloads and improved retention of QuizDuel.
“Relative to last year’s Q2 the DAU is down by 15%, following the pattern of fewer, but higher quality players coming in from UA as described in previous quarterly reports. Connected to the improved user quality we continue to see a year-over-year increase in IAP revenues by 55%, and the average revenue per daily active user (ARPDAU), which is up 32%.”
These results will be vindication for Mag Interactive’s business strategy going into 2023, which mirrored their aims for 2022. Last year their record Q1 revenue was strongly attributed to their user acquisition practices and they planned to invest even further into optimising their UA. Judging by these preliminary results it seems to have paid off, and at a time when some companies like Playtika are halting development of new games in favour of waiting out a stormy year for mobile, user acquisition is going to be key for optimising existing portfolios.
As Hasselberg put it, “Thanks to having a well run UA machinery we can also actively control our cash flow. We keep a very positive outlook for our business and aspire to continue our growth journey for many years to come.”