Observed Signal · Nov 5, 2026 · Earnings Report · Source: Mobilegamer.biz · Impact: 2/5 · Sentiment: Neutral
MTG Q3 Revenue Flat, D2C Reaches 42% of Sales
Swedish gaming holding MTG reported flat net sales of SEK 2.99 billion ($308 million) for Q3 2026, with adjusted EBITDA rising 3% to SEK 693 million ($71 million). Direct-to-consumer (D2C) sales now account for 42% of group revenue, up from 38% in Q2 and 26% a year earlier, driven by Playamp (midcore division) reaching 55% D2C share. Google's new fees on external payment links for US Android players, effective October 1, have partially reduced D2C cost advantages, impacting margins. Playamp's revenue fell 6% pro forma, with declines in Forge of Empires and Warhammer 40k: Tacticus partly offset by Raid: Shadow Legends growth. The company postponed Playsimple's IPO due to Indian market conditions, targeting 2027. MTG also acquired WARP36 and took full ownership of Snowprint. Full-year guidance remains 5-8% pro forma growth, 22-24% EBITDA margin.
Highlights impact of Google's external payment link fees on D2C strategies in mobile gaming, a key adtech-adjacent business model.
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Key Takeaways & Evidence Grounding
- MTG reported Q3 net sales of SEK 2.99 billion ($308 million), flat year-on-year.
- D2C revenue reached 42% of group sales, up from 26% a year earlier.
- Google began charging fees on external payment links for US Android users on October 1, 2026.
- MTG postponed Playsimple's IPO due to Indian capital market conditions, targeting 2027.
- MTG acquired WARP36 and took full ownership of Snowprint Studios in 2026.
Connected Companies & Entities
2 Entities mapped“MTG reported Q3 results with flat revenue and 42% D2C share.”
“Google's new fees on external payment links for US Android users reduced D2C cost advantages.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
MTG Q2: Raid, PlaySimple, D2C Drive Revenue Growth
MTG reported its seventh consecutive quarter of revenue growth in Q2 2026, with group revenue of $306m and adjusted EBITDA of $73m (24% margin). Growth was led by Raid: Shadow Legends ($111m, +9% YoY) and PlaySimple (revenue +29% YoY). MTG said 38% of group revenue now comes from its own direct-to-consumer (D2C) stores, up from 24% a year ago, and over half of midcore revenue is D2C. PlaySimple has filed a Draft Red Herring Prospectus as part of preparations for a possible 2026 listing. Full-year guidance was unchanged.
MTG launches Playamp for midcore games
Modern Times Group (MTG) has rebranded and consolidated its midcore games operations under Playamp, combining studios Plarium, InnoGames, Snowprint, Hutch, Ninja Kiwi and Futureplay with shared services for marketing, DTC monetisation, AI, data infrastructure and player platforms. Playamp reported SEK 9,039m ($953m) in revenue and SEK 2,278m ($240m) in adjusted EBITDA for 2025, representing about 78% of group revenue and 86% of adjusted EBITDA. In Q2 2026, direct-to-consumer channels (launcher, webstores and user-choice billing) accounted for 51% of Playamp’s revenue, and its shared services support more than 60 games. MTG will adopt the Playamp and Playsimple names in place of the Midcore and Casual District labels in its financial reporting from Q3 2026.
MTG Aims to Double Size Through Selective M&A and AI
Swedish digital entertainment firm Modern Times Group (MTG) aims to double its size within three to five years, primarily through selective M&A and organic growth, while scaling AI tooling. CEO Maria Redin emphasized a 'village philosophy' where studios maintain autonomy but share technology and learnings. MTG recently rebranded its midcore division to PlayAmp, which includes Plarium, InnoGames, Snowprint, Hutch, Ninja Kiwi, and Futureplay. Shared services include Plarium's data platform, the GoGame marketing platform, a D2C platform (accounting for 51% of division revenue in Q2 2026), and an AI Lab. AI is being used to accelerate game development, allowing teams to produce more content and test more ideas. Redin stressed that AI is about improving quality and output, not reducing workforce. The company is also exploring M&A opportunities in markets like Türkiye, China, and Vietnam, while remaining Western-focused.
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