Mobile game developer and publisher Mag Interactive has seen in-app purchases grow by 54%, to 132,207 KSEK (Thousand Swedish Kroner) or $12.2m.
Mag Interactive also saw sales grow by 16% and profit margins by 26%.The company is now aiming for a goal of an EBIT margin of 20%. An aim that they called both “achievable and inspiring”.
As noted by CEO of Mag Interactive, Daniel Hasselberg, “The slowdown of UA investments we see in Q3 highlights the dynamics we often describe during periods of accelerating UA. The older cohorts of users continue to generate revenues and eventually catch up and surpass the quarterly UA investments and contribute to a boost in quarterly profitability. We have gradually invested less in UA since the peak investment level in Q1. As a result, the EBITDA margin has moved from 0% in Q1 to 10% in Q2 and now 26% in Q3.”
“After a period of continuously decreasing UA opportunities, we have seen positive signals in the market in the early part of Q4 with increased investments in UA compared to the end of Q3. This is encouraging for the future prospects of our biggest growth game Wordzee. We are decreasing the targeted payback time for UA slightly in Q4 compared to the earlier quarters of the year.”
Move to maintain
From Mag Interactive’s financials it appears that the focus of the company is now to maintain and increase the playerbase of their existing catalogue. With a significant increase in in-app purchases it appears this is paying off. As they also point to a key case study with Quizduel where the timed Question Streak feature will be converted into a permanent feature by Q4 due to its popularity with players.
This changing approach towards UA is also indicative of the increase that is now taking place as predicted by analysts such as Drake Star in their recent report. It’s unclear if, now that UA activity seems to be picking up once more, whether Mag Interactive will pivot once more.