Net sales for MAG Interactive dropped by 25% year-over-year to 71.88 million kr ($6.5 million) in Q2 as the company sets its sights on a new growth strategy.
In its latest financial report covering December 2023 to February 2024, the company reported a loss of 1.9m kr ($173.9k) in earnings before tax. However, adjusted EBITDA for the period showed a 133% year-over-year increase, reaching 19.7m kr ($1.79m).
During the quarter, previous research and development deductions claimed between January 2021 and July 2023 were rejected, leading MAG Interactive to repay the total deducted amount of 16.8m SEK ($1.52m) along with an additional 618k kr ($56.2k) in interest. The company is considering an appeal since it believes it is still entitled to these claims.
Strategic Move
The average revenue per daily active user decreased by 15% year-over-year to ยข6.6. Daily active users also declined by 11% to 1.2 million, while monthly active users saw a 17% decrease to 3.1m.
MAG Interactive’s CEO Daniel Hasselberg mentioned a significant investment in their soft-launched crossword game Crozzle, aiming for a global launch. Crozzle, the first game developed using their modular game-making approach, has shown promising early metrics aligned with expectations. The game will remain in soft launch for a few more months before a decision is made on a full release, targeting a launch before the next quarterly report.
Hasselberg stated, “Our strategic focus continues to yield positive results, with sustained profitability and strong cash flow. Despite some companies facing debt challenges, we remain profitable and debt-free.”
“The successful soft launch of Crozzle and our plans for enhancing our current games indicate a strong start to our financial year from a product perspective. Our goal now is to leverage this momentum to increase UA investments and move closer to our annual revenue target of 500m kr,” he added.
