MAG Interactive have seen key metrics drop amidst a shaky year for the gaming industry, including users and sales.
According to their interim report for the period dating from August 2022 to August 2023, there was an 11% drop in sales, down to 80,095 KSEK (aprox. $7.3m) from 90,001 KSEK ($8.2m). Average revenue per daily user dropped 5%, down to $0.7 from $0.73, while daily and monthly active users dropped by 9% and 18% respectively. However, adjusted EBITDA did see a significant rise, by 20,291 KSEK ($1.8m) from 4,719 KSEK ($430k) to 25,010 KSEK ($2.2m).
The rise in EBITDA achieves some of the aims set out by MAG Interactive leadership in their previous financial statements. It may be that a significant change is coming later in Q4, but for now a shift in drooping user numbers and sales doesn’t seem to be forthcoming.
CEO at Mag Interactive, Daniel Hasselberg, was measured in his comments. “To understand the value we are building in MAG, it is important to have a balanced view of the impact of quarterly UA fluctuations. UA is very important to our long term growth, but it is far from a steady journey in terms of monthly investment volume," he said.
“When looking at extraordinary quarters in terms of UA spend levels, it makes sense to stress the importance of looking at longer term patterns. We rely on the track record we have shown over the years of growing the size of the overall business, while being profitable over time."
Hasselberg went on to discuss the positive product testing results for two as-of-yet unreleased titles, as well as significant improvements such as new features made to their existing portfolio, before adding, “We see great momentum in the new game development part of the company. We have a strong belief – and it is a top priority for management – that we will be able to launch new products that will add value to our games portfolio in a meaningful way this year.
“The strong portfolio of games that we are continuously improving, combined with the new games that are in the pipeline make for an exciting year ahead of us."
The shift in EBITDA indicates that overall the financials are not down across the board for Mag Interactive, however their performance in the August 2022 to August 2023 period is indicative of what has been a year of struggles for many gaming companies. From Epic Games’ recent layoffs to Embracer’s infamous $2bn deal collapse, after peaks during Covid the industry continues to tighten its belt.
Hasselberg, however, is taking a much more measured tone than others who are calling for cuts, instead pointing to previous periods of profitability and the importance of long-term performance.