Direct-to-consumer sales now account for 42% of MTG’s revenue, but the company warned that Google’s new fees on external payment links will eat into the savings.
D2C revenue made up 42% of the group’s total in Q3, according to its latest results, up from 38% in Q2 and 26% a year earlier. At Playamp, the new name for its midcore division, the figure was 55%, up from 33% in the same quarter last year.
However, MTG said Google’s new rules on alternative billing, under which it began charging platform fees on external links for Android players in the US on October 1, reduced “some of the cost advantages of DTC from these players”. The company said its full-year margin outlook already reflects the expected impact.
Net sales were flat year-on-year at SEK 2.99bn ($308m) in the three months to September 30, and down 2% in constant currencies. Adjusted EBITDA rose 3% to SEK 693m ($71m), a margin of 23%, as lower platform fees from D2C were largely offset by higher user acquisition spending.
MTG spent SEK 1.18bn ($122m) on UA in the quarter, up 6% and equal to 39% of revenue.
Playamp’s revenue fell 6% on a pro forma basis. Raid: Shadow Legends grew 1%, but declines in Forge of Empires (down 13%) and Warhammer 40,000: Tacticus (down 10%) more than offset it. MTG said Tacticus had an “outstanding” Q3 last year. Playsimple’s revenue grew 11%.
As previously announced, MTG has postponed Playsimple’s planned IPO due to conditions in the Indian capital markets, and will revisit the timing in 2027.
MTG unveiled Playamp as the new brand for its midcore division during the quarter, and bought Star Trek: Warp developer WARP36 in August. It also took full ownership of Warhammer 40,000: Tacticus studio Snowprint in July.
Bloons Blitz from Ninja Kiwi and Star Trek: Warp are both in or entering soft launch, and MTG expects to announce a “major project” from the Plarium team behind Raid in early 2027.
The company said it remains on track for pro forma revenue growth of 5% to 8% for the full year, towards the lower end of that range, with an adjusted EBITDA margin of 22% to 24%, towards the upper end.
