Welcome to MAG Interactive's Q2 report. Here to present today is myself, Daniel Hasselberg, CEO of MAG. Me, Magnus, CFO. We're going to walk you through some of the highlights from the quarter, then we're going to round off with a Q&A session of a few minutes at the end. Also we're going to have Twitter open throughout the day, so if we don't have time to answer the question or you have anything during the day, we'll respond to you as soon as we can on Twitter. MAG Interactive, we're a mobile free-to-play games developer. We have studios here in Stockholm and in Brighton. We're about 100 employees here, and we have been around for 10 years. As a free-to-play developer, we are on this crossroads of creativity and data. Of course, making really fun, engaging games, but also invest a lot in capabilities in terms of data analysis to be able to improve product performance. Also, really important, measure marketing performance and fine-tune the marketing to get best possible return on investment. Today we're going to dive into a couple of the most exciting product developments during the last few months. First off is QuizDuel Live. This is something that went live on March 8th for the German players. In September, we acquired a company called Primetime, that they have a live broadcast experience on mobile for trivia, and now that's integrated into QuizDuel. As you can see here on the pictures, there's a specific live tab, and you can see on the screens here a bit what it looks like behind the scenes in the studio we have here in the office. There's a live show currently running four nights a week in Germany, and we have roughly 20,000 viewers on every show at this point. The winners get tickets to the arena mode, so it's a nice way of tying the different game modes together. You can win tickets in the live mode and then play in the arena. As you can see here in the shop as well, you can buy lifesavers that you can use if you get a question wrong, or you can of course, as previously, buy arena tickets. Now we're off to a good start in Germany. Exactly. One of the next steps we have is to introduce cash prizes in the game. That's an important one, and after that, we will start to ramp up and push for higher user volumes as well. Beyond that, we expect the game to continue to develop as we usually do with our game as a service concept. It's really early days for QuizDuel Live still, so we're super excited. As I think we mentioned in the report as well, next up after Germany is also Switzerland and Austria. Hopefully that happens during this quarter, the Q3 quarter. Another big update is Wordzee. First off, talk about an update we did earlier this winter, something called Games Just for You. That's a more social matchmaking feature in the game. We present players on your home screen that plays at your pace or equal skill level, or maybe they have the same Wordzee ratios you have, and so on. A lot of different attributes. The fact that it's presented with a profile picture and says something about the player is more engaging and drives more of these social interactions that we really want between players in our community. We can see after that update that significantly more player versus player games are played in Wordzee. That's a good building block in building this evergreen game for MAG with very high long-term engagement. Now as of this week, we're rolling out the biggest update in Wordzee since its launch more than a year ago. It's a really exciting time for the game as well. One of the things is a remade version of the Journeys event. We have a number of events that's always running in Wordzee, and the most ambitious event type is something called Journeys, where you go through different graphical themes and you try to beat levels to win specific prizes. That used to be beat the score kind of challenge, but now it's remade to be a player versus player challenge. You need to beat a number of opponents to get to the prize. We also added checkpoints. Say that you, for example, lose at level 7, you will drop down to the latest checkpoint. That might be, for example, level 5, or you can spend some gems to stay at level 7 and continue to go up to level 10. These are pretty big changes to Journeys that feel really exciting when you play it. It's been a very busy time in Wordzee. We also added a new collection system based on card packs. That's a gacha mechanic that makes the reward aspect of the game more interesting and much more engaging for users. We also tied that into the Journeys event now. When you have these different places on the map where you win stuff, you win these card packs, and as it's some randomness to what kind of cards you win, you need to play it over and over again to really make sure you get all the cards to get that specific tile back that you desire. Especially when we have these time-limited themed events like Easter, you need to play quite a lot to make sure you get the tile you want. This kind of added replayability, we think is a great strength for this new setup we have. You should try it out if you haven't already. Moving on to the product mix. This is a familiar overview of our product portfolio, and of course, a very exciting newcomer here is Word Mansion. Now we have more games than ever that are in the growth category. Now we're investing in user acquisition behind both New QuizDuel and Wordzee, Word Domination, and Word Mansion. Great for the user acquisition team to have more products to work with and spend money behind. Of course, we have the left down corner here with the new games that's really exciting. We have a couple of great games in development now that are getting closer to market tests and also we're increasing the team sizes, so now it's getting really exciting. That's fun stuff. Of course. Exactly. Then top right corner, as usual, we have the evergreens. Those are games with stable revenues, relatively high volumes. Usually no user acquisition, so margins are good. Some games have live ops support, and latest addition there is Ruzzle, which recently moved into live ops. We're going to work also with the new additions, WordBubbles and WordWhizzle, to also come into live ops probably during this year. They are also now part of the numbers of the Q2. Yeah. We've seen over the last couple of years when WordBrain's been run by our live ops team, that their performance has been really better than our expectations. Yeah. Performed really, really well. It's going to be exciting now to see Ruzzle being handled by this live operations team that really got into great habits with WordBrain. Now they have a new game with a full-on event engine and great tools to operate that game as well. It's going to be a really good and exciting time, I think, for Ruzzle now in live ops. Good. We're looking at the game KPIs now, and this is the quarter where we concluded a full migration of the QuizDuel users. All users are now playing the New QuizDuel. If we look back a year ago, at the Q2 last year, we had all of them pretty much playing the old game. It's good to see that we have managed a complete transition. with maintained user levels. Looking at ARPDAU, it's up 67%. A big component of that, of course, is the transition itself with an effect of the new QuizDuel having a strong monetization. It's also a company-wide or portfolio-wide effect where all the multiplayer games have improved their ARPDAU, and in particular Wordzee, with a super strong monetization and growing audience is contributing. Acquisitions such as Apprope as well is contributing to that increased ARPDAU. Yeah. On the financial KPIs, it's nice to file 44% growth, of course. It's 64% counted in U.S. dollars, which is a big part of the income. Half of the growth is organic, and we also see that in-app revenue is a big contributor at 75% growth year-over-year. On the UA side, as we mentioned, we have four games now that we support with UA. It brings the number up. We look forward to see where it could take us going forward. Finally, the contribution at SEK 42 million is the highest we have filed as a public company. It also brings an EBITDA that is twice last year's EBITDA the same period. Yes. I think it's really strong to be able to grow this much in revenues and still increase the profitability at the same time. I think on the UA side, as people that follow MAG closely have seen also Word Mansion doing really well in the charts as of late. Of course, it's a game that we've been able to support for user acquisition in a really good way lately. That's very exciting. We keep coming back to this ARPDAU, but it's a really important part in our growth. We saw on the previous slides here with DAUs stable and revenues going up significantly, and that's, of course, thanks to these ARPDAU improvements. Here we see a picture of the ARPDAU improvement over the last nine quarters. It's been a continuous improvement, and it's portfolio-wide. All the teams are really being part of this rising up of ARPDAU across all the games, which is really exciting to see. Of course, it's been even steeper performance improvements the last couple of quarters, partly thanks to the migration of QuizDuel from old to New QuizDuel. As you said, also the newer games, they all have much higher ARPDAU than the older games. As they become a bigger and bigger part of the DAU base, averages go up. We have a lot of hope we'll continue to improve the ARPDAU going forward. Really proud of what we've done so far, but there's tons of more stuff to do here, both in QuizDuel and across the other games. Yes, wrapping this up, the focus for MAG now in Q3 going forward here is really do the scale-up of QuizDuel Live in Germany. When we have the cash prize in place, and we have fine-tuned the format now we're running four times a week, we can increase the number of shows and also start marketing it more actively, both inside and outside of the game. We have about 40 million German players that have played QuizDuel at some point in time that don't play anymore. We hope this can be a really exciting kind of re-engagement moment where you can come back, show off your skills, and win some real money. We look forward when we have that in place and can start really launching the game. As mentioned, with four games with UA support, there's lots of activity in the growth area, and it's going to be exciting to follow that going forward. Yeah. I hope we can continue to increase that investment in the Q3 as well. Of course, we have the live ops. As we mentioned, Ruzzle already now in live ops and the Apprope games going to live ops later in the year and so on. That's becoming increasingly important part of our business. That's something we're going to keep investing in and hopefully get more of these cross-game wins when we have the same team operating multiple games. Then, of course, new games. Being a games company and a product company, it's really exciting to see new products in development. Those teams are getting bigger, so more of our developers and artists are working on the new products. It's going to be super exciting to see what can happen based on that work. That's the end of the presentation part. I think we'll see if we can get up some questions here and go through them. As I mentioned previously as well, we'll answer questions on Twitter as well during the day. Just wait for you to get some questions up here. The first one, "I heard MAG Interactive is flying to the moon. Is that true?" Of course, it is. It's a great momentum. I think everyone can feel that both when you see the numbers and you see how the games perform on the charts right now. It's a really exciting time for us, that's for sure. "What possibilities do you see to further monetize New QuizDuel?" That's a lot of things. One, of course, that we talk about a lot is this live feature because it's so unique. You don't see any other mobile games having this kind of live performances in the game and a real human being talking to the audience and building that relationship. Of course, there's a lot of more things to do in New QuizDuel. Given that it is our, by far, biggest game in terms of daily active users, it's a lot of potential there. The team is actively working on other in-game features as well that will create a stronger in-game economy. On the in-app purchase side of QuizDuel, there's a lot to do. I think we have tons of potential to unlock there. "Can we expect the ARPDAU improvements to continue at this pace?" I think it's always a slippery slope starting to promise what's going to happen in the next months and quarters. We do feel that we have reason to believe we can improve ARPDAU going forward. What kind of pace it is, it's hard to know. If it's going to be even quicker or slower. It's a lot dependent on the new features we get out into the games, but also the user acquisition balance. Depending on which game that grows quicker, the ARPDAU will be changed more or less. Looking at games like Wordzee, for example, has a much, much higher ARPDAU than the average. If that grows a bit, that has a lot of impact. We expect from ourselves to continue to improve ARPDAU. I think that's fair to say. Is an EBITDA margin of 17% sustainable? This is referring then to the adjusted EBITDA margin. I think it was 14%, the unadjusted, and we did some adjustments. Maybe you want to mention what those adjustments were, by the way. Yeah. We adjusted for a revaluation of option programs that we have to do, and it's driven by the value of the share. It has nothing to do with the operations. That's why we adjust for it. We also adjusted for legal costs for the acquisition of Apprope. Yeah. That's the difference between 17% and 14%. Yeah EBITDA. I think 17% in that sense is fair, but our goal longer term is to get to 20% EBIT margin, so even higher EBITDA margins then. It's definitely something we strive for. Of course, it's on a quarter-per-quarter basis. It's really dependent on how much we are able to invest in user acquisition. When we can invest a lot in great user acquisition, that will always have a negative effect on the result in that quarter, but of course have positive effects longer term. That's why we do it. I don't think we expect our margins to be stable, but hopefully the long-term view we have of our margins is that they're going to improve over time until we have a really strong EBIT margin. Okay. Regarding QuizDuel Live, how expensive is the production of one episode on average, and is this able to sustain itself with sponsorships or rather a tool to create further engagement? It's definitely something that we both can support and make money from. Given the size of the audience, the production is not super expensive, and the good thing here is that we already have Primetime that is running these shows in the Nordics 10 times a week in each of those countries. We use the same studio setup, so everything is already there. It's basically just make sure we have great hosts that can interact with the German audience. Otherwise, I'd say it's more or less the bandwidth to broadcast the show. We see this as a monetization driver when it is at scale. When we have these cash prizes and we really start to market it, we expect this to be an ARPDAU contributor for sure. There is another upside of this as well. We believe that it's going to be an exciting marketing tool. Hopefully make it even easier for the user acquisition team to find new traffic and do these kind of re-engagement campaigns to wake up inactive German players. "How would you eliminate the possibilities of cheating when introducing real prizes in QuizDuel Live?" This is something we already have live. Primetime has been live for three years with real money prizes. The thing is that it's not huge amounts of money that you win, so I don't think cheating is very widespread because you win maybe a few tens of SEK if you're lucky, sometimes even less. It's more symbolic. I think people are super proud of their wins, and the fact that it's real money makes a psychological difference. I don't think it's a big problem with cheating. There is a time aspect to it, maybe you have five seconds to come up with the answers. Of course, if you're super quick at Googling or you use Siri or whatever, then maybe you're able to cheat. We haven't seen it as a big issue for these three years for Primetime, I don't think it's going to be a big deal. Actually, if you try and play Primetime, for example, if you're in Sweden, you'll see that there is a real-time chat as well. People are writing the answers in the chat, and sometimes they trick others to the wrong answers, and sometimes they're actually helpful. I think that adds a kind of fun spice to it all. Okay. Will you release new games in Q3? How we operate is always that we're testing games, we're doing market tests multiple times during development, but we only announce games when we go into a soft launch. That will happen when it happens, and we don't talk about that prior to that being a fact. What we do want to share is that we have exciting games in development, and then being a very data-driven company, we always make sure that data is on our side before we do a release. If we launch something, it tends to work, and if it doesn't, you never hear about it. I guess that's how we operate. Any thoughts on user acquisition costs going forward, especially after the pandemic? That's a really interesting question. I think it's fair to say that we saw March, April last year was kind of an abnormal environment. on both sides, like monetization and UA. Yep. It's felt fairly normal from June and onwards. Is this a new normal or will things change when the world come back to life? It's really hard to know. It's been surprisingly normal for the last eight, nine months. When we think about player habits, I think that's something that at least some games companies and entertainment companies in general think about is what happens when people start living a normal life, go to restaurants, commute to work, and so on. Will the time you watch Netflix go down? Probably. Maybe sometime game experiences also go down that are more demanding in time. I do think we are on the right side of that. We have a lot of people who play the games actually commuting to work and so on. I think we're part of that habit. In that sense, we can look forward to normal life in multiple ways, both that you actually want to live a normal life again, but also I think gameplay-wise will be good for us. The question was UA cost, and it's really hard. I don't know if you have a more clever Obviously, it's always hard. Yeah going forward, and especially of course when changes come up. I think the key point is it's been surprisingly normal during this period, the last, I mean, since June and onwards. We will see. Yeah. Okay, we have a final question here. Can you elaborate a bit on the Word Mansion performance last week? This is someone who's been keeping track of what we're doing. That's always fun. Yeah, so Word Mansion has really gone high up to the charts in both U.S. and U.K. and Australia and so on. It's thanks to the marketing working really well for that game at the moment. It's been great to see the response from the market when we run these ads. Of course, when we increase the user acquisition volume, it's because we see that it works. It's a really exciting time for us and for that game and of course for the Apprope team as well to see that this game is doing so well in the charts. Fairly steadily since end of last week, we've been in the top five word games in the U.S. which is a real accomplishment and testament to good product and good marketing in combination. Pretty exciting stuff. Cool. I think with that, we'll say thank you for watching. Again, if you have any questions on Twitter, just fire away and we'll try to answer as quickly as we can. Cool. Thank you. Thank you.