Sweden's MTG Q2 adjusted EBITDA tops estimates on casual games scaling
Sweden's MTG Q2 adjusted EBITDA tops estimates on casual games scaling
Overview
Sweden mobile gaming group's Q2 net sales rose 2% yr/yr, a slight miss versus expectations
Adjusted EBITDA for Q2 rose 10% and beat analyst expectations
Company launched SEK 500 mln share buyback program after AGM approval in May
Outlook
MTG expects 2026 pro forma revenue growth in the range of 5-8%
Company sees 2026 group adjusted EBITDA margin in the range of 22-24%
MTG expects unlevered cash conversion to remain materially above medium-term guidance
Result Drivers
MIDCORE PERFORMANCE - Revenue growth in the Midcore District was mainly driven by RAID: Shadow Legends, which grew revenues by 9% yr/yr pro forma in Q2
CASUAL GAMES SCALING - Casual District revenues rose 29% yr/yr in constant currencies, driven by rapid scaling of Crossword Go, Tile Match and Cryptogram
USER ACQUISITION SPEND - User acquisition spending rose 15% yr/yr in constant currencies, with higher marketing spend in both Districts to support new titles and content
Company press release: ID:nWkr8HN2dc
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | SEK 2.97 bln | SEK 2.99 bln (4 Analysts) |
Q2 EPS |
| SEK 0.83 |
|
Q2 Net Income |
| SEK 99 mln |
|
Q2 Adjusted EBITDA | Beat | SEK 707 mln | SEK 665.88 mln (4 Analysts) |
Q2 EBIT |
| SEK 317 mln |
|
Q2 EBITDA |
| SEK 690 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Modern Times Group MTG AB is SEK160.00, about 34.7% above its July 20 closing price of SEK118.80
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
July 20 - Sports firm Thule Q2 sales slightly miss estimates; warns of price hike
July 20 - Sweden's Hexpol Q2 sales, operating profit beat estimates
July 20 - Sweden's Devyser Diagnostics Q2 sales fall on distributor inventory adjustment
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)