Hello. Welcome to MAG's Q1 report. Here today to present the report is me, Daniel Hasselberg, CEO of MAG. Me, Magnus Wiklander, CFO of MAG. Here at MAG, we make mobile games, and we have studios here in Stockholm and in Brighton in the U.K. We've been around for about 10 years now, had a quarter of a billion downloads, and what we do here is working both on the creative side with making games obviously, but also on the data side with optimizing based on game analytics and also running user acquisition, so performance marketing. There's a lot of stuff going on in both those departments, and we love being in that crossroads of data and creativity. Over the years, we've built up a really strong portfolio of games. By launching games continuously over a long period of time, you have then games in different parts of their life cycle, and that gives you stability over time. Some are further out in more harvesting mode, and some are in the earlier growth phase. On any given day, we have about 2 million daily active players, and they spend more than 1 million hours playing our games every day. Exactly. We of course grow this portfolio, as we said, over time. Lately, we've added two welcome IPs to this. On the left-hand side here, we see Primetime, on the right-hand side lately, also Apprope's Word Mansion added to this picture. During this quarter that we're reporting, so this is September through November, we celebrated MAG's 10 year anniversary. In 2020, we turned 10, and originally we had a plan to throw a big party, but of course, COVID made that impossible, but we decided to celebrate together with the players. In all of the major MAG games, we ran 10 year anniversary events, and that was really fun, like have a common theme across the games. We also saw those events perform really well in terms of high player engagement and increased in-game monetization and so on. That was a really good effort to have across all of the key titles. Yeah. In addition to in-game events engagement, we also had cross-game engagement through our newly released new cross-promotion platform that we released prior to the 10 year anniversary. We see that creating brand recognition and value for MAG, and we're going to continue to use that also going forward, and it's sort of active in all our games. Yep. A couple of words about Apprope. This is the most recent acquisition from MAG. We announced that just a few days before Christmas, and they are part of MAG since January 4th. This is a step for us into a narrative and decoration category of games. This is something that's become very popular over the last couple of years. This is basically you wrap your key core game, it could be a word puzzle or a match three game, into a progression that's kind of you follow a story and often you renovate or decorate or make something look better over time, and that's a metaphor that's performed really well lately. With Apprope, we get this framework for building games on this kind of narrative and decoration theme. The first game they built on this framework is called Word Mansion, and it came out second half of 2020, and we see that grow really nicely during the fall, both in downloads and in revenues. Of course, now with Apprope on board at MAG, we really look forward to see if we can leverage some of the MAG capabilities in terms of game analytics and user acquisition and so on, and help strengthen that growth even further. It's going to be really exciting to see, and that will be then two-thirds of our next quarter you will see some Apprope effect. Exactly. With Apprope, we also have a profitable portfolio of older games, primarily Word Bubbles and WordWhizzle. We see that as an opportunity for our live ops team to take care of. They have lots of experience to work with games like this, and we hope also that will allow the Apprope team to focus on the growth titles going forward. Yes. If you follow us for a while, you know that we sometimes show this picture of the kind of product mix, our portfolio, the key games, and the difference this picture versus last time around is that classic QuizDuel is not here anymore. That's because end of November, we could see that 90% of all QuizDuel players were now playing in New QuizDuel. That migration is now behind us when we go into Q2. Let's take a look at this picture as of the acquisition of Apprope. We see an even more balanced portfolio. We have our new game space, of course. There's a lot of exciting projects going on inside that we haven't announced yet. We also now have an announced new growth game in Word Mansion, so that's really exciting to see in this picture. Yeah. As mentioned, we see a number of titles on the right-hand side, and in the evergreen section, we have Word Bubbles and WordWhizzle coming in. Slightly lower revenue than, for example, Ruzzle, a similar profile with years after peak, a stable audience, and stable revenues, and creating contribution going forward for the company. Yes. Yeah. Let's look at some of the high-level KPIs. Yep. As usual, we start with audience and ARPDAU, where we see similar story to last quarter where we have a stable, slightly growing audience year-over-year. I think we have the COVID pandemic peak behind us. On the ARPDAU section, we have a strong growth in ARPDAU with 43% up year-over-year. We can see that as a broad portfolio improvements in all our games, and in particular adding is Wordzee with a strong in-app economy. We can also see that a lot of the growth comes from the in-app purchases in our monetization split. Having a look at our financial KPIs, we're filing a 34% growth in net sales. Of that, 25% is organic, and the rest is acquisition from Primetime. It means that we have, in the fifth quarter in a row, that we filed around 20% or more growth. That's nice. Also worth noting is that we have 86% growth in in-app in our net sales as a primary driver of our growth compared to last year. UA is up from SEK 11 million- SEK 16 million, which is in the right direction. We're still not where we want to be. Now with the growing portfolio of growth games, we hope that we can continue to add to our spend and show higher numbers in the future. Contribution being what we have left over paying platform fees and marketing, so it's our gross profit. We're filing a SEK 38 million contribution this year, which is the highest we've seen as a public company so far. That's a real sign of strength, I think, for the business growing with keeping that margin really high. Here's a view of a longer time period. If we zoom out and look at nine quarters, that's basically from the start of our focus of the development on multiplayer games, and also when we decided, talked about that both externally and internally, that ARPDAU is a KPI we think we have a lot of room for improvement. We make great games that people love to play, and they stay for months and years, but we can improve on the monetization side. Here is a view of how we've been able to do that continuously for a very long time now. I think it's because all of the games are actually improving, and we can learn between the different games. Something that works in Word Domination can be reused in Wordzee, and so on. We get better and better as a company. Look at the last bump up here between Q4 and Q1, which is an even quicker growth of ARPDAU improvement. That's attributed to the migration of players from classic QuizDuel to New QuizDuel. We talked about that during 2020, that New QuizDuel is a much stronger product, and we look forward to migrating players onto this new generation of the game. Here we can start seeing that in numbers also. It lifts the entire average of the portfolio's ARPDAU. Really happy to see that. If we look a bit at what we're going to do going forward here, we announced in December that we started to do smaller tests of live trivia shows run inside of the New QuizDuel game. This is something that I think has been really great to see how quickly we've gone from closing the acquisition on September 1st with Primetime, and already in December, pretty complex integration is done between the two companies. I think really well done from both the Primetime side and the new QuizDuel team to make that happen so quickly. Now during Christmas, we've done a number of test shows. As of this week, we're live on both iOS and Android. We're still doing this small-scale testing, tweaking the concept, and so on. The goal now is to gradually get a bigger and bigger audience on board with the aim of end of February being fully live to all German-speaking QuizDuel players. That's a really exciting move for us. Yeah. With the higher ARPDAUs in Primetime, SEK 0.07, SEK 0.08 we've seen before in the Nordics, combined with the complementary type of monetization with the new revenue stream, we hope that this will also contribute even further to the ARPDAU of New QuizDuel and to the portfolio as a whole. Yeah. As you mentioned, Magnus, we have Word Mansion now as part of the growth portfolio. We can invest more in user acquisition. I think another focus for us now is also in that area, to invest even further in user acquisition, and get the benefit of having more growth games. That's of course, really important for us going forward. The continued investment in the live game portfolio, as we've seen with this kind of continuously growing ARPDAU graph. It shows the value of continuously updating and working with your live products, and of course, new game development and infrastructure as well in terms of better tools for user acquisition and optimized game analytics and so on. I think a lot of the stuff we're working on now works really well, so I'm happy to start this financial year with a great report. With that, I think we go over to some live Q&A, and then also as we've done for the last few quarters, you can also use Twitter. If we don't have time to answer your question right now, or maybe you come up with it during the day, feel free to just address us on Twitter, and we'll try to answer everything as best we can during the day. Let's see if we can get our window up here with the questions. I don't know if we have a sign we can show the Twitter handles, or if you just can find that in the report. Yes. Here we are. Good. Let's take a look at some questions. "Talk more about the rationale behind acquiring Apprope. How much potential do you think there is to grow in the puzzle game decoration category? This is a really exciting thing for us. If you describe that as a category, this kind of narrative and decoration meta game, it's been applied in many of the really top grossers in the world in the match-three space. We think that this audience really enjoys this kind of progression. We think there's a lot of potential in this category. Of course, we already see that Word Mansion is a working game that's already taking off a bit. Continuously working with that, I think could leverage a lot of opportunities, but as a category, it's a really, really big opportunity. That's exciting. Okay, second one, how were you able to achieve this growth of ARPDAU in a year? Is it sustainable over time? This is the biggest improvement I think we reported in a year, like 43% up in ARPDAU. It's of course hard to know in advance what the pace would be the next quarter and the next year. What we know is that we still have a lot of stuff we're working on that will or should improve the ARPDAU, and it's going to continue to be important across all of the games to work with that. I think there's still a lot of room to grow if you look at what can be done in this category and with this audience. We haven't reached our goal yet, so we're still working on that. Any new game releases from Brighton 2021? We have new game development, both in Stockholm and in Brighton, actually, ongoing new projects. Our way of approaching this game development is we're very data-driven, and we have our milestones and processes and so on. What we decided in terms of talking publicly about new games, we announce it when it go to soft launch, not before. There's really interesting games being developed in both studios. When can we see the live shows in Germany? What do you expect the impact on ARPDAU to be from that addition to the games? I guess that's close to what you talked about, right? If you're really lucky, and in Germany right now, you might see a show any day, but it's pretty small samples still, but that's going to expand. End of February, I hope that everyone that has a German account on New QuizDuel will be able to watch the shows. ARPDAU effect. The MAG average ARPDAU is SEK 0.04, and New QuizDuel has a lot of potential to grow. When we described Primetime as having, I think it was SEK 0.079 ARPDAU this quarter. That's the standalone Primetime app. That's an ARPDAU we've seen that we can generate with this kind of sponsorship monetization. That's how Primetime works. You have a sponsor of different shows. It's how much uplift you'll see in New QuizDuel will depend on the opt-in rate, how big part of the audience want to take part in these live quizzes, and then view the show that will generate sponsor revenues. That's one of the interesting things for us to explore now from February onwards, I guess. That was the key driver for the acquisition of Primetime. We think this will be a really, really exciting match. Next, what are M&A valuations currently like at MAG Interactive? How much of an increase are you seeing in mobile companies and IP valuations? This is a really interesting question because I think sometimes you look at companies with multiples, so how many times revenues or EBIT should you pay for a company? There's also a lot that goes into synergies. Like with Primetime, we could see that this is something we can plug into a much bigger game and scale up, and then you see opportunities that are very different from just looking at revenue multiples, for example. Of course, if you have a game that's out at scale, then it's much easier. We can put it into our spreadsheets, and we can see how much profit we'll get from that game in the next number of months and years. I'd say in general, we don't see unreasonable expectations when we talk to studios around the world. It's a lot about also as a seller of a studio to find a buyer that you feel comfortable with and where you think that life is going to be fun and exciting and you will get the opportunity to grow both you as a team and as a business, and also make a potential earn-out actually happen. I think that's where the more relationship thing also is really important. The short answer is we don't see super high valuation expectations when we talk to studios. Okay. What level of UA are you aiming for in the future? We're basically always aiming at spending as much as we can on UA given that we can keep our profit margin. This is really a matter of what's the competition like, and that's changing basically on a daily basis, right? We're trying to address an audience that might also be exposed to advertising from Amazon or Instagram or some other game and so on. It's a really fluid market, and that's why it's great to invest a lot in user acquisition tools and analytics because it means that we can always monitor that we're buying with profitability. Because it's really easy to waste money if you don't know what you're doing in performance marketing. In general, we want to continue to increase investments, but we'll do that while monitoring that we get the ROI we expect from our investments. We often come back to payback times as something that we use to measure performance, and we aim for about six months payback time currently. Of course, different games could have different shapes of their LTV curves and so on. Maybe you can experiment with longer or shorter payback times. That's our general view, six months. What next steps to increase QuizDuel ARPDAU are you most excited for, seeing most opportunities in? I think the most immediate, of course, is the live quiz to get. In addition to programmatic ads and in-app purchases and subscriptions, we're also now adding the sponsorships as a revenue stream. There is a lot of exciting more, what do you call it, traditional game monetization mechanics coming in, so other events. If you play New QuizDuel now, you know that you have the arena where you can compete in different categories on daily leaderboards and so on. There is a lot of other exciting stuff on the roadmap for that game. I think that will drive more of the in-app revenue side of things. It's hard to talk about specific features. There is a lot of really fun and exciting ideas there. "Will games from Primetime and Apprope be MAG branded going forward?" We'll see. The Primetime standalone app has a really strong brand and brand recognition in the Nordics. That will stay Primetime. The live shows integrated into New QuizDuel, that's obviously part of QuizDuel and are QuizDuel branded. With Apprope, it depends on what kind of games they do. We'll see what kind of direction we choose there. If the games are more social, they're closer to the MAG brand, and if it's more purely single player, then maybe it's further from the MAG brand. We'll see. If I got that right, it's the last question. Yeah. Thanks for watching. As usual, you can always send us questions on Twitter as well, and we will do our best to respond. Thank you. Thank you.