Modern Times Group MTG AB (MTGB) Q4 FY2025 Earnings Call Transcript & Summary

Good morning, everyone, and thank you for joining us today for our Q4 and full year 2025 results. My name is Anton Gourman, and I'm the VP of Investor Relations at MTG. Hosting this call today are our CEO, Maria Redin; and CFO, Nick Hopkins. There will be opportunities to ask questions after the presentation. Please use the online form if you want to add questions to the live stream, or follow the instructions from the operator if you're dialing in by phone. I now hand over to Maria. So Maria, please go ahead.

Thank you, Anton, and hello, everyone. We're now closed 2025, and I'm really proud to report a great finish to what has been a great year. We're taking a big step forward to evolve our group, while delivering all-time high revenues and profits. As I said, we truly had a transformative year, and MTG is bigger, better, and stronger today than ever before. The acquisition of Plarium has significantly boosted our scale and critical mass, and adding also a strong lineup of games, most notably RAID: Shadow Legends to our already high-quality portfolio of games. The consolidation of Plarium's tech and tools is also enabling us to take a major step forward in our vision of creating one of the best mobile gaming groups out there, where we are becoming stronger and better together and elevating the best of both companies. The acquisition has also enabled us to build out what we call a new district model, where we have both a Midcore District and Casual District. In our Midcore District, we are now well underway on our journey to create a state-of-the-art shared platform service where we can support and empower our game studios. And in our Casual District, we set out and we're executing on a new long-term growth strategy, and we've also conducted an IPO study for a potential listing of PlaySimple in India. On top of this, we also delivered 9.4% organic growth for the year, which is slightly higher than the top end of our 7% to 9% guided range. And we have more or less doubled our year-over-year revenues in constant currencies. We finished the year with an 8% organic growth year-over-year in the fourth quarter, and we reported record quarterly total revenues of SEK 3.1 billion. We also reported SEK 11.6 billion in total revenues, which is equivalent to around $1.2 billion, which is also in the upper half of our full year guidance range of SEK 11.4 billion to SEK 11.7 billion, including Plarium. And this is despite the negative impact we see on FX movement, where the dollar has lost versus the Swedish krona. We continue to invest in marketing levels and attractive returns. Our original studios increased their marketing investment by 25% year-over-year in Q4, and we also had an all-time high SEK 1.2 billion in user acquisition spend in Q4. That is equivalent to 38% of our revenues. Despite this continuous user acquisition investment, which gives us a great momentum as we start in 2026 as well, we generate a record quarterly adjusted EBITDA of SEK 707 million in Q4. This is equivalent to a margin of 23%, both for Q4 and the full year, again, delivering in the upper half of our guided margin range of 21% to 24%. Looking at the cash flow, we generated SEK 878 million in unleveraged free cash flow in Q4. We do have some positive working capital effects in the quarter. These will balance out in Q1, and Nick will take and talk to you about this later. For the full year, we delivered strong unlevered cash conversion of 66%, which reflects the strength of our underlying operational cash flow generation and was well in line with our medium-term target of cash conversion over 60%. A quick look into our total sales before we go into the franchise reporting. As a quick recap, we reported record revenues of SEK 3.1 billion in Q4 and SEK 11.6 billion for the full year of 2025. This represents an increase of 108% year-over-year in Q4 and 107% for the full year in constant currencies. Our reported sales were up 84% and 92% year-over-year, respectively. On a like-for-like basis, we had a negative 12% currency impact, and that is roughly half of what we report as a negative currency effect of 23% in the quarter. And if you also look at our like-for-like revenues when we include our original studios and Plarium on a constant currency basis, we were up 3% for both the full year and for the quarter. So moving forward then, let's look at the performance of our franchises and key games. Just as a reminder, before going into this, we will start for Q1 a new segmental reporting disclosure that will reflect the 2 districts that we're moving into. So Q4 report is the last time we present information in this way. Starting then and let's look at Plarium. RAID: Shadow Legends delivered a strong Q4, and we managed to set a new record for daily revenues in December, which is an impressive achievement. The team delivered another successful IP partnership with Alien and Predator. They also executed on an ambitious pace of both in-game events and live-ops, and they were supported by a Black Friday sale. As a result, RAID delivered revenues on par with a highly successful Q4 2024, which we're really glad to see. RAID strong performance in Q4 has also continued the positive momentum going into Q1, where we also supported the game with high levels of UA, which is an encouraging start of the year. If looking at Plarium as a whole, revenues were down by low single digits on a comparable basis year-over-year, and that reflects lower revenues from the rest of the portfolio that is offsetting the positive performance we're seeing in RAID. Our Word Games franchise delivered another quarter of outstanding growth. Franchise revenues were up 23% year-over-year in constant currencies and by 17% for the full year. This performance was largely driven by the rapid scaling of our 4 new games, Crossword Go, Tile Match, Word Tour and Cryptogram. And this is indeed encouraging as we look into 2026 and onwards that we have so many new games that we can successfully market and scale. The growth for the full year also benefited from the geographic expansion and localization of our established Word Games, which primarily then took part during the first half of the year, but we've been scaling them successful thereafter as well. And what I find really exciting as we look towards the end of the year is that PlaySimple continued to drive growth, both in its core Word Games, but equally exciting to see that they're moving into the adjacent Puzzle category, which opens new addressable markets for them. Moving into our strategy and simulations. The segments were down 10% year-over-year in Q4, but it was up 3% for the full year in constant currencies. Revenues in Forge of Empires were down year-over-year despite several in-game events for Q4. We should remember that Forge is turning 40 years old, which is an amazing achievement. It is one of our longest-standing evergreen games, and we are firmly committed to that it will continue to be a cornerstone of our portfolio for many years to come. So -- and we know that speaking to the team, they have an engaging discussion on how to optimize the games for many years to come. Heroes of History, which is now just over 1 year old, grew significantly year-over-year as it continues to scale. Remember, this is also a sequel to Forge of Empires. The game team maintained a high pace of new content in Q4, with multiple in-game seasons, events and a new set of players to explore. Moving to Snowprint, and Warhammer 40,000: Tacticus had a fantastic year, and the team has delivered strong double-digit growth for the full year basis. The game continued to scale significantly during the year and the cadence with new contents and events has been driving the performance. And besides this, the team has also been focused on improving the game's direct-to-consumer monetization capabilities, but is something that is also a priority for us as a group and enhancing also the offering in its webstore. Tacticus revenues were down in Q4, and this comes from a mix of significantly weakened dollar versus SEK. It had challenging comps from last year, but we're really happy to see that the team has one of the most exciting game lines that we're looking into next year, and it also strongly finished the year with all-time high revenues and strong performance in December. We remain very actively excited when we look at the pipeline as we look forward. Moving to our Racing franchise. Revenues were up 43% year-over-year in Q4 and by 19% for the full year in constant currencies. It's been great to see the franchise coming back to growth, and the team has done a great job delivering the season reset of Formula 1 Clash earlier this year in May. We maintained excellent momentum in Formula 1 during the year, and we also had a strong finish as the season racing came to a conclusion in the beginning of December. Top Drives also grew year-over-year in Q4, supporting the overall Racing franchise performance. Last but not least, the Tower Defense franchise revenues were up 4% year-over-year in Q4, but down 8% for the full year in constant currencies. The active player base in Bloons TD 6 has continued to decline even though player engagement remains high, and we had an active content release schedule in the game. I'll now hand over to Nick, and will talk about more operational performance and the overall financial performance.

Thank you very much, Maria. So as discussed in previous quarters, the consolidation of Plarium shifted our overall revenue mix towards a higher proportion of in-app purchases in 2025 relative to 2024. And in Q4, 74% of our revenues were from in-app purchases. We had a slight uptick in contribution of revenues from in-app advertising in the quarter, up from 20% in Q3 to 22% in Q4, and this was driven by the outstanding growth of our Word Games franchise that Maria just spoke about. Direct-to-consumer, or D2C, as we call it, remains a core strategic focus for us as a group. In Q4, we generated 32% of our revenues from D2C, and this compares to 26% in the third quarter of 2025, and 19% in the fourth quarter of 2024, which was the last quarter before we consolidated Plarium. The approximate 600 basis point sequential growth from Q3 into Q4 was primarily driven by the introduction of direct payments in RAID: Shadow Legends, as well as other D2C initiatives such as Warhammer 40,000: Tacticus webstore. We had 9.4 million daily active users in Q4, up from 8.9 million in Q3. And again, this reflects the very strong performance of our Word Games as we continue to scale new titles. ARPDAU or average revenue per daily user was broadly stable quarter-on-quarter. This reflected higher ARPDAU in our Strategy & Simulation and Tower Defense franchises being offset by the mix impact from the growing contribution of our slightly lower ARPDAU Word Games. Now if we turn and have a look at user acquisition. As Maria said, Q4 was a quarter of many records, one of which being UA spend. We invested a record SEK 1.2 billion in user acquisition in the quarter, bringing our total marketing spend to SEK 4.3 billion for the full year. Our total group UA spend has broadly doubled, up 98% year-on-year in constant currencies in Q4 and up by 109% for the full year, again, in constant currencies. We have continued to invest in UA to underpin both near-term and medium-term growth at attractive return levels. We have continued to do so with a very disciplined and holistic approach, prioritizing both the allocation of spend, where we see the highest levels of return, and into scaling new games. UA spend in our original studios was therefore up by 25% year-on-year in the quarter in constant currencies. We also continued to scale investment behind RAID in the quarter to capitalize on the game's positive momentum, which has continued into 2026, which is very encouraging to see. UA spend, therefore, represented 38% of group revenues in Q4 and 37% for the full year basis. So now let's look at our profitability. We reported a record SEK 717 million in adjusted EBITDA in Q4 and SEK 2.6 billion for the full year, equivalent to around $280 million. This represents a 58% increase year-on-year in Q4 and a 59% increase for the full year. As per revenue, the significant weakening of the U.S. dollar against the SEK has a flow-through effect on our profits. And it's worth noting that our adjusted EBITDA growth in the quarter would have been closer to around 80% on an FX-neutral basis. And on a full year basis, our adjusted -- total adjusted EBITDA would have been in excess of SEK 2.8 billion in constant currencies. This increase in the adjusted EBITDA reflects both the flow-through impact from our organic revenue growth as well as the consolidation of Plarium with -- from the start of February. Despite our record levels of UA investment that I spoke to on the prior slide, we delivered adjusted EBITDA margins of 23% for both Q4 and for the full year 2025, which, as Maria mentioned earlier, this is in the upper half of our guided full year range of 21% to 24%. So we're incredibly proud to have delivered on this achievement, in particular, in the context of our total revenue also being in the upper half of our guided range. This really demonstrates our ability to deliver on both growth and on margins through disciplined UA investments and our portfolio management. Our adjustments to reported EBITDA in the quarter amounted to SEK 114 million. These included SEK 82 million of M&A transaction costs related to the performance-based revaluation of put/call options for Snowprint; SEK 25 million in restructuring costs related to the Midcore transformation program; and finally, SEK 6 million in adjustments for nonrecurring bonus structures for a multiyear employee share options program in PlaySimple. I'd like to finish by looking at our cash flow and at our leverage. We delivered cash flow from operations of SEK 840 million in Q4. This was comprised of income before tax adjusted for items not included in cash flow of SEK 668 million, taxes paid of SEK 75 million and positive working capital contribution of SEK 240 million. Our cash flow from operations in Q4 was boosted by elevated working capital levels, which are primarily timing related and expected to reverse in Q1 2026. Our CapEx remained low at SEK 52 million, reflecting both the asset-light nature of our business and our prudent approach to how we capitalize our game development. We had SEK 20 million of realized currency effects, and we paid SEK 70 million in interest in the quarter, therefore, generating unlevered free cash flow of SEK 878 million in Q4. On a full year basis, we generated SEK 1.7 billion in unlevered cash flow, which is equivalent to around $180 million. And this corresponds to a 66% unlevered cash conversion rate for the full year, which is in line with our medium-term guidance that we presented at our Capital Markets Day of achieving cash conversion in excess of 60%. Whilst our unlevered cash conversion was slightly higher in the quarter due to the working capital movements that I've already mentioned, excluding those one-off timing effects, we still would have also delivered unlevered cash conversion in Q4 of excess of 60%. Whilst we reported net income of negative SEK 62 million for the full year, if we look at the underlying adjusted figure where we exclude noncash items and amortization related to PPA from our M&A activities, we delivered SEK 1.4 billion in adjusted net income for 2025 on a full year basis. We, therefore, delivered an adjusted EPS of SEK 11.33 for the full year and unlevered cash flow per share of SEK 14.16. Our financial net debt amounted to SEK 2.5 billion at the end of the year, which comprised external financing of SEK 3.5 billion and lease liabilities of SEK 253 million against SEK 1.2 billion in cash and cash equivalents. So our financial leverage ratio, therefore, amounted to 1.02x based on our full year EBITDA, including Plarium. If we then look at our total net debt at the end of the year, this amounted to SEK 3.9 billion. This comprised our financial net debt as well as earn-out liabilities of SEK 1.1 billion and put/call options of SEK 250 million. And so therefore, our leverage ratio amounted to 1.58x our full year EBITDA, again, including Plarium. So with that, thank you, and I'll hand back over to Maria to conclude.

Thank you, Nick. And before we go into Q&A, I just want to take a moment to summarize our year and where we stand as we now head into full steam in 2026. Looking back to 2025, it has been highly transformative for us, and I'm really proud of everything we have accomplished during the year. The acquisition of Plarium was a major catalyst for us, an enabler of the creation of a new district model, where we are combining and elevating the tech tools and the people we have across the group and truly making us stronger together. The newly established executive leadership teams across both Midcore and Casual Districts are executing upon clear strategies to drive sustainable, profitable growth in the years to come ahead. We have also concluded our IPO readiness study that we talked about at the Capital Markets Day, and we proceeded to appoint advisers to prepare for a potential listing of PlaySimple in India in 2026. We do believe that this presents a very exciting opportunity for PlaySimple and for MTG and has the potential to accelerate our M&A ambitions in the casual gaming market. I think what is really amazing as well is we've done all of this whilst also delivering operationally and financially and setting new records and delivering on our guidance. This underscores the strength and the dedication of our teams and the quality of our portfolio and games within. I truly believe we're in a fantastic position to continue to deliver growth and value to our shareholders in 2026 and beyond. With that, I want to thank you for your interest, and we are ready to take your questions.

[Operator Instructions] The next question comes from Simon Jonsson from ABG Sundal Collier.

So my first question, I know that you're not guiding for '26 right now. But I think it would be helpful to -- for you to share your sort of near-term ambitions for Plarium. It's the largest unit recently acquired, of course, very important for organic growth. Sales has been declining a little bit here, but rate is relatively flat. So looking ahead, will you aim to keep RAID flat and sort of let the rest fade away a bit? Or will you aim to invest more to get RAID up to positive growth? So yes, if you can elaborate a bit on that.

Yes. No, thanks for your question. I think we are really excited when we look at Plarium and RAID in particular. I think the game has had a strong 2025. So I think we're actually quite pleased to see the performance. And I think what we -- in particular, the second half of the year, we may not have talked about it enough in the report is that together with the team, we have been -- I mean, they've clearly been working and presenting their road map and also you had us presenting at our Capital Markets Day on how they work with RAID. So RAID do have a truly exciting pipeline, not just in '26, but '27 and they're also already working on '28. And on back of that, we've also been scaling up UA during the second half of the year. So the momentum that we see in that game, I think, is really exciting, and we've been seeing good trajection. So our ambition is that RAID should grow in the coming years, and that's what we're going to work with the team to deliver. And I think that's exciting. RAID is today the bigger part of Plarium. We said that from the beginning. I think we said when we acquired it, that RAID is approximately 70% of Plarium. I think if you actually look in Q4 and the strong performance of RAID and then also to be fair, the slightly weaker performance of some of the legacy games, that is almost close to 80%. So that just shows the quality of that game, and that is something we want to continue to invest in.

I think just one other thing that I'll briefly add is if you do look at RAID's performance, whilst in Q4, as we spoke about, it did have a tough comparison to Q4 last year on a full year basis. On a constant currency basis, it is delivering low single-digit growth. So it is already in growth mode.

All right. And I think you wrote that end of Q4 was very strong. I think you mentioned very strong in the report, you also said start of '26 has also been very strong. So I mean, compared to the H2 '25 levels, where you were scaling up, do you think sort of building on that trajectory into the start of this year that you have seen incrementally positive momentum recently? Or how should we view that with your comment on early '26 strong start?

No, I think you're reading it in a good way. I think we -- last Q4 2024, we did not own them, but they had a very, very good quarter. So they had tough comps in Q4 to Nick's point, but they still reached all-time high in December, which is great. And I think the momentum we go into in January, where they had an exciting IP collaboration as well is very good. So that just shows that it's a 6-year-old game, but it's at the same time, only a 6-year-old game. We have Forge of Empire that is celebrating the 14-year-old sort of game now. So we are very excited that when we are looking at RAID and its potential going forward. Of course, you shouldn't expect sort of double-digit growth for such a huge game because it has an already significant scale. But the talent behind the game and the creativity that they have for that game is impressive, and also that we can scale up marketing and increase investment with strong ROAS is a positive sign.

Also on the D2C revenues, which were quite strong here in Q4. You mentioned RAID as one of the drivers for that. So is that part of the good momentum also that you have seen good momentum in that channel? Or was that on the D2C revenue growth, was RAID sort of the main reason for the higher D2C sales? Or you also mentioned Tacticus, but was the increase more digital towards RAID, or was it evenly between RAID or Tacticus you would say? Or how is that?

Yes. I think that across the D2C initiatives that we're implementing in the group, which as we spoke about at our Capital Markets Day, that is, for example, direct channels such as Plarium and Plarium webstores, and then it is also direct payments. We've seen -- continue to see increasing contribution from all channels, specifically in the Q4 versus Q3 comparator and that step-up from the 26% to 32%, that has been more skewed towards the RAID direct payments introduction. But overall, we are seeing kind of overall growth in D2C contribution from all the different growth vectors. When we were speaking, just to clarify on kind of RAID's overall strong performance, we are speaking about that kind of if we do look at on a gross basis before we are looking at any platform fees or also on a net basis as well.

All right. And when you do that sort of mix shift transferring the revenues into other channels, do you see some kind of organic drop that you give out discount or something for the direct payments? Or do you think you can maintain -- have you seen that you can maintain sort of the volumes?

Yes. But I think that is a truly important part that as you are moving into different payment channels, you need to make sure you keep your conversion. And whilst we can sort of give slightly alternative offers, you need to make sure that it still provides a net positive for us as a company, still giving a good offering to your customers. So I think that is something we are closely tracking and also A/B testing to make sure we strike that fine balance. So far, I think that we have balanced that in a good way. And we do see D2C being a great opportunity for us going forward as well. And then it's, of course, up to us to choose that incremental margin, how do we best benefit of that, what should we invest into further user acquisition in a good way versus what do we take down to the bottom line profitability.

All right. And the last one on the D2C increase here in Q4. Do you think that we should view that as a step-up that will -- you will continue to build from? Or do you think there's some kind of one-off effects in the high share in Q4? Or how should we view that into the next couple of quarters?

Yes. No, I don't think that I'd characterize it as kind of any one-off effects. And so, this is a kind of rebase, which we continue to build momentum from thereafter. I think the only one caveat that I'd say to that is as we have alluded to, obviously, RAID did have a very strong Q4 and in particular, December. And given that the step-up was also driven by direct payments in RAID, there is a slight mix impact within that. But essentially, no, there are no one-off impacts. This is a new basis from which we see further contribution growing from here.

All right. Interesting. Just one last from me on India listing. I think you -- if I remember correctly, you stated your intention to keep a majority ownership of PlaySimple. But would you say you're open to other alternatives as well, i.e., where you're not the majority owner?

I think as a part of that filing, you need to state your intention and our intention is to remain a majority owner. We think PlaySimple is an amazing company, and I think the future potential of that -- if we can also add the right selective M&A next to PlaySimple -- is truly exciting. So that's why we would like to remain a majority owner of PlaySimple as we move forward. Of course, from time to time, you will need to reassess that, but that's our intention where we are today.

All right. That's the intention, but it sounds like you're open to other alternatives then.

Well, that's our intention today.

The next question comes from Jacob Edler from Danske Bank.

I think that Simon asked a bunch of my questions already, but just a couple of ones to kind of follow up. Just on the specifics within Plarium, the legacy games, as you call them, have been declining year-over-year for a couple of quarters since integration. But how are those games kind of developing on a sequential basis? I mean, are we getting to a point where they're starting to kind of level out? Or is it still in a kind of a declining mode sequentially in constant currencies?

Yes. No, thanks for the question. Again, we don't break down the individual games. But if you would look at it more holistically, you can argue that they did have a rather steeper decline in the beginning of the year. And I think as we come into the end of the year and we look at plans into 2026, you could argue that they have both coming from a smaller base, but the aim is, of course, that we should stabilize at least the core of the games, which you can argue both Mech Arena and Merge Gardens are still sizable game for us and relevant games. And I think the teams behind both games do have good plans on how they should stabilize the performance within that. And that's, of course, what we will support as well as we go into 2026.

Great. And just the second question, I mean, obviously, the racing genre driven by F1 has been really strong this year. What are your plans kind of to, I guess, bridge that into the season reset in '26? I mean, I guess it's a very hard question to answer for you guys, but do you have anything to comment there?

Yes. I mean, first of all, I think it's fair to say to your point that we are really excited about the season reset this year and the focus the team has had to turn the trends around. I think that's a massive undertaking and I think a great testament to the team. We did get a little bit of support also from the Formula 1 excitement for the movie and so forth. I think what is exciting as we look forward, I mean, yes, we bring the learnings from the previous season resets into it, but then the overall Formula 1 is going to have a major overhaul. So hopefully, that will bring even more excitement into the category, and that could hopefully also benefit us. And of course, our focus lies in making yet another really strong season reset also in '26.

I think the only other thing I'd add on as well is if you look at also the performance of the game kind of post the conclusion of the season and some of the events that are post-season events and the continued momentum the game has been able to carry between the seasons gives us a high level of encouragement as we then do start the new season.

Great. Just another one, a specific question on Tacticus. I mean now it's declined a bit in Q4. Is that mainly just the element of the comps here? I mean there was a lot of content out in the market on the Warhammer IP last year. Is that the main effect would you say that -- I mean, you are setting the comps; just to kind of understand the underlying dynamics.

Yes. I mean, we're still really excited about the potential of the game. And hopefully, that was clear also as we presented. But you're fair to say there are two drivers last year that sort of boosted. I mean, you had year-over-year, the dollar has come down significantly, and that is predominantly dollar-denominated game when you look at the customer base. And then second of all, the hype around Warhammer as in sort of IP was huge last year. So that did impact and then also a little bit to the timing on when we actually did have our major events that was skewed a little bit more to Q3 this year. So it's a combination of those things. Looking forward, I mean, the team has an active pipeline, and they're really excited about the game and so are we.

Cool. Just a last housekeeping question on my end. I mean CapEx is not at a very high level, but it's coming up a bit sequentially. Is that just an element of us getting a bit further into the development cycle? And I don't know, I think Plarium has a quite interesting pipeline down the line. Is that how we should read it? Or is it just phasing effect? Or is this kind of a run rate to expect? Or should it come up a bit heading into '26?

Yes. No, I think you've characterized it quite well. As we spoke about at the Capital Markets Day, as we look at our kind of new games pipeline for the years ahead, we do have a combination of kind of smaller games, which are kind of lower risk but lower reward, but then also some slightly bigger games. And therefore, as that mix does include some of those bigger games, there has been that slight increase in CapEx, but still not a material amount.

The next question comes from Rasmus Engberg from Kepler.

Just two questions from my side on RAID. Firstly, can you shed some light on the Assassin's Creed takeover? I think it looks to me like one of the bigger ones I've ever seen in RAID.

Yes. No, it was an amazing integration, and I think the team did actually excellent to bring it into the game and really get the best out of that IP. So in that sense, yes, it was good. I don't -- I wouldn't know -- I'm not sure if I would carry the biggest one. I think they are -- in every IP collaboration they do, they become better on understanding how do you actually get the different IPs to marry in the best of sort of worlds and also bring the player the best experience. So I think that is a journey for the team, and that's where we're getting better and also then on our side, also making sure we get the best value out of those IP collaborations as well. I don't know if you have anything, Mr. Hopkins.

Yes. No, I think one of the other -- clearly, IP integration has been a hugely successful growth driver for RAID and it will continue to be a core part of the RAID strategy going forward. And one of the exciting things has been that if we look back at the major IP integrations over the last 12 to 18 months, the team have tested with slightly different ways to actually monetize those IP integrations as well. And so we're really able to kind of continue to optimize those going forward as we look at the slate of future IP integrations, because they are not all monetized in the same way.

I noticed that your -- that the RAID now is pushing an app that is basically outside of Google's Play Store. Has that been any part of increasing the D2C payments, or is it something else that pushes this?

Yes. So essentially, there is the kind of player -- play launcher, and then there has been the separate direct payments, which is kind of outside of the [ iOS eco-sphere ], which has been the 2 largest drivers of the increased D2C contribution within RAID specifically.

Okay. And are you going to come back in Q1 and give us a full year guidance? Is that a fair assumption?

Yes. No, I think normally, we give an outlook more in Q1 versus Q4. I mean, I think recently, we gave an updated sort of midterm guidance, which is rather fresh. So you should expect us in Q1 to give a little bit more clarity on the 2026 in isolation.

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Thank you very much. So we only have one question on the digital Q&A. And rephrasing it slightly. So we have had a declining equity per share for a while. So when will the growth that we're seeing be converted into bottom line profitability? And how should we think about that?

Well, I think it's worth noting that, obviously, we do have kind of elevated levels of PPA due to some of the M&A transactions that we've done and also as we do look at some of the financial net and noncash items, and that's why we do very much focus on our adjusted net income rather than kind of underlying reported net income. But as we do look forward as to if you take our medium-term growth guidance and if you do translate our growth, our margin and our cash conversion, then that does take us to a kind of path to, as you call it, kind of underlying net profitability.

Then moving on to the comments made about PlaySimple. Is there anything else that you can add about the timing within this year?

No. I think that it's fair to say though as always, we would like to progress as soon as we can. So we always have an urgency in the execution. But at the same time, you need to make sure you follow the regulatory routes and the different milestones. So I think it's probably fair to expect there will be more towards the second half of the year than the first half of the year. But we'll come back as we have more information, and we'll make sure we do it in a correct but expedient manner.

Then continuing on the PlaySimple topic, is there anything we can add about how the potential proceeds will be prioritized? Would they primarily be used for further M&A within the casual district? Or would we see a special dividend or accelerated share buybacks for MTG shareholders? Or maybe all 3 alternatives are on the table?

Yes. I was going to say, I think a couple of things. One is that from a regulatory and other purposes, it's premature for us to provide any commentary around kind of the actual proceeds that we'd be planning on realizing or the use of those proceeds. So I hope you can appreciate at this point in time, there's limited that we can say. But as part of the preparedness study, we have been evaluating both actually what the actual offer structure at the IPO could be; and should there be any direct proceeds from a secondary sale, what could be a potential utilization of those proceeds. So we are evaluating all options and have a view, but it's premature at this stage to give any further color.

Then moving over to MTG's net debt. What is your target net debt-to-EBITDA ratio for the end of 2026? What do you think about that?

So whilst we don't give explicit kind of leverage guidance, as we communicated at the Capital Markets Day, we are very much focused on making sure that we do maintain an efficient balance sheet, which does mean that we do have a levered balance sheet. But that needs to be taken into the context as we continue to evaluate how we can deploy capital against not only organic growth initiatives, but also inorganic growth initiatives. And then per the prior question, potentially any overlay from a potential PlaySimple IPO as well. So therefore, whilst at this stage, we were not going to be giving specific 2026 leverage guidance, we would make sure that we want to end up the year in a levered position. But exactly what levered position does look like depends upon the PlaySimple potential IPO and/or any M&A we take through the course of the year.

Thank you very much. We have no further questions at this stage. Therefore, I want to thank our speakers. I want to thank our guests, and we hope to see you again at the next opportunity. Thank you.