Good afternoon, everyone. Thank you for joining MTG's live stream and teleconference for our second quarter results. This event is hosted by our Group President and CEO, Maria Redin, and CFO, Lasse Pilgaard. At the end of the presentation, there will be an opportunity to ask questions. If you're watching the live stream, please, as usual, use the questionnaire feature in the video stream to submit your questions. If you're dialing in by phone, please follow the operator's instructions. I now hand the word over to our CEO, Maria.
Thank you, Anton, hello, everyone, and thank you for listening in to our Q2 call. We are really happy to report another strong quarter, where we saw continued operation momentum driving strong sequential performance in Q2. We remain therefore on track to deliver on our outlook for the full year, and of course, while we have lots more to do, the dynamics that we're seeing across our studios are highly encouraging. When we look at the second quarter, PlaySimple continued to deliver consistent standard results, thanks to the combined strength on the new and established word games. We now generate around 10% of the Word Games franchise revenues from the new games, and we have scaled up the marketing for these games significantly to capitalize on the rapid growth.
Ninja Kiwi also continued to deliver strong results on a sequential basis, This really demonstrates, yet again, the strength and the longevity on the Bloons TD 6 and the whole Bloons IP. In addition, we're very happy to see the continued healthy momentum from InnoGames, where our Strategy and Simulation franchise revenues were up 10% on sequential basis in the quarter. They were also up year-over-year in June, thanks to very successful events in Forge of Empires during the month. InnoGames have now completed the reorganization and is operating according to the new plan and structure. The focus is on driving the continued long-term performance in Forge of Empires, and to implement the ambitious roadmap we have to bring the new games back to growth. We also continued the work on the Flow Platform during the quarter.
I think one of the most exciting development that we saw in the quarter was a new collaboration between Hutch and the business intelligence team. This has resulted in a project for a new BI platform for Hutch, and this is specifically then tailored to their needs and based on the group best practice. This platform is now being developed and will provide Hutch with more advanced marketing analytics and insight once it's launched, which is planned for Q3. We have also continued to do the work on our ad monetization and the cross-promotion pillars on the Flow Platform during the quarter, and that is being built out from our PlaySimple team.
Looking at our Adjusted EBITDA, we reported an Adjusted EBITDA of SEK 397 million, with a margin of 27% in the quarter. This was up year-over-year with a significant improvement from the 20% we had in Q1. If you're looking on the key drivers versus last quarter, they were really threefold. Proportionally, we spent lower UA spend in the quarter. We had a one-off reversal of an incentive program in one of our studios. We also saw improved operation efficiency, especially coming from the cost optimization program we have run in InnoGames, also from PlaySimple, who are starting to benefit from the larger scale. Let's move on forward and look closer at our revenues. Our net sales were up 6% year-over-year.
That is driven by positive currency effects, our organic growth sales, they were down 2% year-over-year, we saw positive currency exchange that added 7 percentage point growth, and that is a result of the weak Swedish krona that we're seeing. Yes, I am aware that the math doesn't perfectly add up, that is basically due to rounding errors. Year-over-year, our organic sales decline in Q2 was mainly driven by InnoGames, who we still had elevated comps last year because of the post-pandemic marketing environment they saw for the mid-core games. It continues to be difficult to attract new strategy and simulation players, we've not seen any changes to the marketing environment here.
The growth that we report in the quarter, therefore, reflected the initiatives that InnoGames have put in place to drive higher monetization from their existing players, and particularly in Forge of Empires, where throughout the quarter, our live ops worked really well in the period. Let's move on and look at our franchises. Overall, we're really happy to see that all our franchises grew on a sequential basis. The Word Game franchise continued to deliver fantastic results. It has been one of our biggest franchise for the last 6 quarters in a row and has generated strong growth during every quarter since our acquisition. Franchise revenues grew by 14% year-over-year in Q2 and by 12% on a sequential basis in constant currencies. This reflected the fact that we had a strong performance across the franchise.
Both established games, like Word Trip and Crossword Jam, as well as the new games, performed well. PlaySimple, really strong live ops in the quarter. That was what drove both monetization and retention of players. The success they had also allowed us to scale up the marketing across our games. Moving into the new games, both Word Search and Crossword Explorer both continued to grow in Q2. Word Search was by far the best performing title in the quarter. PlaySimple invested around 20% of total UA spend in these new games in the quarter. The new games therefore represent around 10% on the franchise revenues, which of course, is something that makes us very happy to see. The Tower Defense franchise continued to showcase the strength of global growth gaming IP.
Bloons TD 6, again, delivered strong sequential growth for the franchise, and a lot of that goes back to the update we did in April, which was immediately followed by a successful Steam sale. The Bloons team further released an additional update in the game in June to continue to drive the game momentum and engagement. We're also really proud to report that the Bloons TD 6 was launched on the Netflix platform in the quarter. That is something we worked for a while, and that the initial performance that we see is very positive. The team also continues to work on the Bloons TD Battles 2, but we're not investing in any marketing yet for this game because we still want to see the improved metrics on back of the updates.
Strategy and Simulation franchise sales were down 13% year-over-year, but they were up by 10% from the first quarter in constant currencies. The strong sequential performance came from Forge of Empires, which continued to show positive momentum in the quarter, and that's really thanks to three successful events and strong live ops. The Forge of Empires team has really worked hard to improve monetization from existing customers, and this was really the main driver that we saw in the quarter. Unfortunately, we have really not seen any improvement in the marketing environment and our ability to bring in new player, hence, the live ops becomes even more important. Our racing franchise revenues were down 10% year-over-year, but we were up 13% from Q1 in constant currencies. The year-over-year drop in sales was caused by the slower start on the Formula One season compared to last year.
The team has really been focused on improving the player experience and is still evaluating the longer term effects on the update we did at the season restart. The Hutch team has already made some tweaks to the game economy to drive monetization going forward. So far, we've seen encouraging KPIs following the updates. Top Drives did not grow this quarter, as our live op did not perform as we had hoped. The team is, however, working on a new roadmap for the game. They're also working to hire the new creative directors who's joining after the summer. The sequential growth in revenues, however, we saw still from the franchise, reflected in the fact that Q1 is typically a seasonally weaker quarter for our racing games. If we look at Kongregate, sales were down both year-over-year and also versus Q1.
Kongregate continued to invest in the development of its Web3 and NFT gaming portfolio, as well as the kongregate.com games portal. We added 4 new games to the platform during the third quarter, as well as 26 new third-party games. If we then go to the new games, we're really happy to see the revenues from the new games growing, and these titles reported 32% increase in sales on a sequential basis. The main growth is coming from the two new titles from PlaySimple, who is investing in marketing and scaling both Crossword Explorer and Word Search. We are very excited to see how these games are developing and their importance to the portfolio.
In addition to these two games, PlaySimple is also working on several new titles, which are currently going through testing, that we would look forward to actually bring to the market in the future. Hutch has continued to invest in their two new games. The first one will be a mobile title focused on the car customization, Hutch announced a partnership with Turn 10, the Microsoft-owned studio, famous for the Forza franchise in June. The early metrics for the new game has been very promising, we hope to be able to tell you more about this game later this year. Ninja Kiwi, on their side, they are working on three new titles, which we have mentioned before. It's still too early for me to really share any details on the game, we expect the first of these three to be launched in 2024.
Last but not least, Kongregate is also making progress on their new game, which is more for the traditional portfolio. The game is based on a major global IP. InnoGames, on their hand, they continue to work on improving the two games that we've had on a semi-live for quite some time, Sunrise Village and Rise of Cultures. For Sunrise Village, the team is pursuing an active content pipeline and a range of retention initiative to push the game's growth. The team is really focused on increasing both the monetization and improving the player experience, and they also just now launched a beta version of the game in Q2. For Rise of Cultures, which is the second game, we're actually working on a larger rebound, so it will not be until the year end where we actually see any major results coming out of that game.
In addition to the new games, InnoGames is also focused on evolving how they work and how they're experimenting with the generative AI to both improve their production process and development process, which is something that we're looking also across our other studios. Looking under the KPIs, the total number of daily and monthly active users were up slightly in Q2 versus Q1. Our Word Games continued to be the main driver of our active user base, which again testifies the strength and the momentum of this part of our portfolio.
At the same time, I'm also happy to be able to report that while we saw a small decline in DAU and MAU for InnoGames, all the 4 other studios that we're having actually showed an increase slightly from Q1 on both metrics. Our average revenue per daily active user were up slightly, both year-over-year and quarter-on-quarter. This continued to primarily reflect the fact that we are doing well at monetization at our existing player base, in especially the Strategy and Simulation franchise. I will now hand over to Lasse, who will take us through our profitability, user acquisition investments, and financial performance.
Thank you, Maria. Turning to profitability, I'll try to provide you with some of the drivers of the quarter. I think, as Maria already mentioned, we landed at 27% Adjusted EBITDA margin, which for us was a really satisfactory quarter. All in all, we reported SEK 397 million, which again, is equal to a profit margin of 27%. After deducting capitalization to labor, we delivered a simple free cash flow margin of 24% for the quarter. This was a significant improvement versus last quarter, where we delivered SEK 263 million, and a profit margin of 20%. On a sequential basis, we grew our absolute Adjusted EBITDA by 50%. The improvement was driven by three key factors, which I would say had almost equal weight.
First is that UA spend declined on a relative basis, so as a % of revenue, although it actually did increase on an absolute basis, which I'll show you on the next page. Our OpEx levels were down, which were especially driven by the restructuring program in InnoGames, where we saw two of three months of effect in Q2, given that it was executed towards end of April. Lastly, we reversed a LTIP bonus cost in one of our studios, which created a one-off positive contribution in the quarter. I think lastly, also worth mentioning, that we are continuing to see a higher degree of skewness from mobile to browser in InnoGames, which is also supporting improved margins. This is especially significant on a year-over-year basis, less significant on a sequential basis.
As a result of this strong quarter, we basically also reversed the trend in our 12-month trailing numbers, as you can see in this slide, which of course, we are very happy to see. Talking about the adjustments for the quarter, we booked a relatively small transaction cost of SEK 4 million. The non-recurring bonus structure in PlaySimple that we have had for the previous now, six quarters, we also booked here SEK 8 million, which is slightly less than we had in previous quarters due to a reevaluation of the program, which is something we do twice yearly. Lastly, we adjusted for the restructuring cost of the reorganization program in InnoGames, which accounted for SEK 40 million.
Turning to user acquisition investments, as I just mentioned, we managed to increase our total absolute spend to a total of SEK 463 million for the quarter. This is both up sequentially from Q1. It's also up versus same period last year, as you can see. The high investment level here is really driven by PlaySimple, who are able to scale their marketing significantly while keeping very healthy return levels. Again, as Maria also mentioned, it is especially the new games and the scaling of those that is enabling this higher spend to go in. Further, it should also be noted that PlaySimple has actually changed the marketing, I would say, strategy and investment plan for the year, where we historically spent more in Q4 than any other quarter.
We're now trying to balance the spend more over the full year, so that we spend less in Q4, that typically has very high CPM levels, meaning that you would actually rather invest less and monetize more. That also means if you look at the investment levels outside PlaySimple, our apps, our total spend was actually flat between Q1 and Q2, and slightly down versus same period last year. Again, stressing the fact that the increase is really driven by PlaySimple, because we do see, as Maria mentioned, that especially InnoGames have continued difficulty scaling the user acquisition in the part of the market that they are relevant in, i.e. mid-core, which unfortunately is not a unique thing for InnoGames, but more of a, you could say, market issue that they have.
However, the larger exposure to browser is benefiting InnoGames, as they are able to deploy relatively more marketing there versus mobile. Lastly, from my side, we'll turn to cash generation from our profits. All in all, we landed at 53% cash conversion for the quarter. The cash conversion was positively impacted by interest rate that we accrued on our deposits, while negatively impacted by the relative high UA investment levels and the redundancy program that we had in InnoGames.
I would say, given, again, these two relative significant effects, I'm really happy to see that we are able to deliver so high cash conversions, i.e., 50%, despite these things, which basically, as we see it, is a strong testament to the quality of the earnings that we have in the studios. With this cash generated and the final earn-out payment to Ninja Kiwi executed in Q2, which was 365 million SEK, we ended the quarter with almost 4 billion SEK of cash on the balance sheet, which is including a long-term deposit sitting in PlaySimple. With that, I'll turn it back to Maria for the final words.
Thank you, Lasse. If we then wrap it up, all in all, we are very happy to report a strong quarter, where our businesses have demonstrated a clear and healthy operational momentum. PlaySimple and Ninja Kiwi both continue to be our growth engines, and it's really encouraging to see the positive sequential dynamics and strong events in Forge of Empires. This is clearly just one step on a longer journey that we are having, but it's really important to see and note that we are delivering on our expectation that we set out in Q1, and our trajectory remains very sound when we look forward. As a result, taking this quarterly 2 into account, we're very optimistic for the rest of the year, and we reiterate our full-year outlook.
We continue to expect full-year sales with a range of -3% to +2%, and we also expect an Adjusted EBITDA margin between 23% and 25%, which is in line with our long-term outlook that remains unchanged. When it then comes to our markets, it is clearly encouraging to see that the market also performed slightly better than what we initially expected going into the quarter. As we then look out for the rest of the year, it's really difficult to say for now. There's not been any updated public forecast to lean on, but as I mentioned previously, we saw the same challenging environment in the mid-core market that we've seen before, whilst the casual mobile gaming market was more positive in the quarter, and we are optimistic as we look into the second half of the year.
If you're looking to our long-term vision and the strategy, nothing has changed. We have a really strong portfolio of evergreen IPs, and we have amazing studios. We have a clear strategy in place to build on the Flow Platform as a common layer to help our game companies to accelerate. Our industry is above that, supported by the positive dynamics that we see long-term, both when it comes to demographic, technological, and social trends. We have on top of that, also a strong balance sheet to support us when we look to future M&A ambitions, which will help us to grow our relevant scale and bring more companies into our gaming village. Equally important, before we move on to questions, I really would like to take a moment to say thank you to Lasse.
This is his last set of quarterly results with us, before he hands over to our new CFO, Nils Mösko, coming in now in August. I really want to say thank you to Lasse, because you've been an amazing partner, and I think I speak for the whole of MTG, that we truly value your contribution and your passion, and we will miss you deeply. So with that, I will hand over to Anton, and we're ready for questions.
Thank you very much, Maria. We will start by questions from our guests calling in via phone. Operator, over to you, please.
If you wish to ask a question, please dial star 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star 5 again on your telephone keypad. The next question comes from Simon Jönsson from ABG. Please go ahead.
Hi, Maria, Lasse. A couple of questions from me. First, on the growth outlook, the organic growth in Q2 was higher than expected, and I wonder how you view the outlook for the rest of the year. Forge was supported by strong live ops. Should we expect that to persist, or can we see a bit of a mean reversion there? Last quarter, you said you expect sequential higher sales every quarter. Is that still your view?
Hi, Simon. Thank you for the question. I think in Q2, what we were really excited to see is that our live ops worked really in all our companies almost. That is, of course, a really nice thing to see. I think you're absolutely right. We were quite clear when we reported Q1, that we believe that we will grow sequentially, quarter-on-quarter to deliver our outlook. I think when we're now closing Q2, I think we came in better than what we anticipated, which, of course, we're really happy.
I think as we look forward, we're still keeping the outlook, which means that you should expect that the change Q2 going into Q3 may be slightly softer than what we previously envisaged. Q4 is always our strongest quarter, which means that we still expect then a good uplift going from Q3 to Q4. As much as we would love to see that we have 110% execution in our events, that's basically what we saw in Q2 for InnoGames and Forge of Empires, we don't forecast on that. There's still an opportunity, but I think we balance our forecast a bit more than that.
All right. Thank you. You know, it seems like, it's very tough to attract new players in InnoGames, in the mid-core segment, as you touched on. What is the main difference for PlaySimple, you would say, where scale-up of the new games goes much better? Is it because of successful cross-selling, or, is it the genre doing better right now in general, or?
So I think they are following the same market trends as I would say, the market is in terms of how it's developing. Remember, when you have a casual game like PlaySimple has, it has a very broad appeal to audience. When it has a broad appeal, it also means that your need to tailor very specifically the marketing or you could say, target the marketing to a narrow audience, becomes less important. It was that tailoring and targeting that disappeared with the regulation that Apple put in on especially, of course, Apple. While I would say InnoGames is searching for that 1 player out of 100, that's interested in the mid-core strategy games, PlaySimple is searching for those, I don't know, 20 out of 100, and that just means that the impact on PlaySimple and generally the casual genre has been less from the IDFA regulation that was implemented.
All right. Have you seen any, like, positive impact from, you know, having a broader portfolio of games in PlaySimple, doing successful cross-selling, or is it just mainly a genre thing?
No, I think actually we haven't started yet to do the cross-promotion to the new game, so I think that is an opportunity that we can see as we go forward. I think in general, you're absolutely right. I mean, bringing a richer sort of games portfolio in the casual side is something that will benefit us, and that you can exponentially grow going forward, because that's when you will add the overall cross-promotion engine on top of that. That is something we're excited about, and that they have on top of these two new games, they're scaling, they have three more in the pipeline, which we look forward to hopefully be able to bring to the market. Over time, you will also then get the benefit of the cross-promotion engine you're referring to.
All right. I got it. The last one from me. If we adjust the organic growth for the platform incentive revenue, PlaySimple got last year, the growth should be positive, correct? Around 2% or-
Correct. If you would do the simple math, you add about five points, so you go from -2 to +3. That is fully fair, given that they also had slightly worse performance last year from the migration, I don't want to comment on, but you're right, that's how the math would stack up.
All right, thank you. Thank you, Lasse, for your time. I'll get back to the queue.
The next question comes from Rasmus Engberg from SHB. Please go ahead.
Good afternoon. I had a couple of questions. Maybe if I take them one at a time. Just on your comments regarding UA spend, are you sort of implying that we should see a more stable EBITDA margin over the year as the UA spend is more flattish, you know, all other things considered? Is that what you're sort of indicating here or?
Short answer, yes. If you look at at least the last two years, the seasonality created in Q4 was largely due to the higher investment levels from PlaySimple. Also, some extent in our games, but especially PlaySimple. The seasonality driven by that, you could say, higher spend on the UA margin should become lower. Of course, remember, in Q2, we do have a one-off payment that creates a little bit of a higher level. When you do your seasonal modeling, you need to take that into account.
Yeah. Question number two, actually. The other income of SEK 35 million, could we sort of assume that that's roughly the reversal of the LTIP program, or?
That's correct.
Okay, cool. On the sort of the other incentives that were somewhat low in this quarter, SEK 8 million, is that what should we anticipate kind of at a level going forward? I think you historically said it was gonna be around SEK 25 million. Now, we've had SEK 13 million and SEK 8 million.
I think we've said that it should be around 15 per quarter. Then you should expect that also to continue when we have 1 quarter where we are, you can say, balancing it out a bit, is just to clear the, you could say, the discrepancy between new estimated value and book value. We still believe it's around that level, which should accumulate over 3 years to SEK 200 million, approximately.
Just on the other one, the M&A transaction costs, they seem to be running at SEK 5 million-SEK 10 million per quarter, yet there are no acquisitions. Well, is that the cost of your M&A team that you have there or?
We, I would say we only take an adjusted for M&A cost when there is an actual transaction. Typically it's the external fees and not the internal ones that we adjust for. It's because it's a broad category. It also includes, for example, when we're doing our earn outs payments with a Ninja Kiwi, we of course, do that based on financially audited numbers, according to the SPA that was agreed with them. There we get an advisor in to make sure that the right definitions are used. That translates into whatever payment that is, and the cost of that, we call a M&A. You could call it a transaction cost as well, but this is due to previous M&A. Again, the last couple of quarters, given that you haven't seen us announce a lot of M&A, has predominantly been based on that.
Okay. Just a final question. I guess we've gone into the more quiet period, at least in Europe, or we're getting there now. What did the market look like during this quarter, and what have you seen anything now in July, or how does the market feel now?
You mean the gaming markets in general?
Seasonally.
Yeah, Q3.
Yeah. No, no. I think we normally see, I mean, Q2, as we said, was actually slightly stronger than what we had envisaged. You have Q4, that is always the strongest season of the year, which means that as we move into Q3, that is normally a seasonally weaker quarter, to your point. I mean, most countries actually go on holiday. There tends to be sunshine in Europe. People are outside more. We do expect sort of sequentially, in general, the market to slow down a little bit. I think our performance, as we've seen throughout Q2, I mean, we're really excited about it. We're really happy about it.
As we look to all our companies, I think if there's two things that stands out for us, it's our live ops that we see across the vast majority of our games, and also our ability to scale the new games. You can argue that, of course, the live ops and engagement to some extent has something to do with the market, but a lot of it comes down to the operation execution also on our team and their ability to launch new games, such as Word Search, which is truly exciting. We said before, we believe a better market in H2 versus H1, and we still believe in that.
Very good. Thanks.
The next question comes from Thomas Singlehurst from Citi. Please go ahead.
You, Tom here from Citi. Thanks for taking the questions. I funnily enough, you partially answered one of the questions I had, but I just want to just be sort of clear about it. You're talking about seasonality, and obviously last year was a bit unusual because we didn't necessarily get that big seasonal spike in the fourth quarter. You mentioned user acquisition costs, sort of seasonality unwinding a little bit, albeit driven by PlaySimple. I suppose the question is: do you think there will be just an evening out of seasonality in the market more broadly, at the revenue line? I mean, it obviously will be more of a skew to the fourth quarter, but over time, do you think seasonality become less pronounced at the mobile game market? Cheers.
I think to be honest, in, I don't know what to call it, normalized markets, there are many drivers that actually points to that Q4 should be a very strong market when you look at CPM levels. You're also looking at the way we actually drive our live ops calendar, Christmas calendar and so forth. In theory, Q4 should remain, I think, the strongest quarter of the year, and also especially if you live in the Nordics, it's dark, pretty much 24/7. I do believe to some extent the seasonality will persist. We didn't see it last year very much at all, but I don't know if that is an abnormality than actually more the new normality. I would still believe in a seasonality.
I suppose the question is: I mean, if UA in general is spreading out within the year, how much of the sort of mobile game ad market is sort of the mobile game sector advertising to itself, I suppose.
Yeah. No, it's a fair point. The fact that from our end, in PlaySimple, we actually look into actually balancing marketing investments more on a sort of annualized level and not so heavily skewed in Q4. I don't know if that is a general marketing theme across all companies or not. I think the CPM levels are not just driven on that, they're also driven about Black Friday, Christmas sort of shopping. There's a lot of things that drives the general CPM levels than purely how sort of we allocate our marketing budget. I, again, time will tell. We're still optimistic as we look to Q4. I think the market drivers in the CPM levels are much higher, than what we should expect from shifting a little bit on marketing budgets, 'cause it's not that we are moving a big degree, we are more proportion allocating marketing between the quarters.
Perfect. Then, I mean, obviously, the cash balance is a big feature of the MTG investment case. Could you just talk about how the landscape's evolving, in particular with regards to M&A? Are we seeing more sort of companies sort of under pressure to sell? Are we seeing that reflected in valuations? What are the sort of major factors?
Yeah
... preventing sort of a midterm sort of cash usage, perhaps?
Yeah. I think the one important thing to remember about gaming companies, and also if you looked at the gaming companies we have acquired, they all been very successful, they all been sort of high-margin business, with a strong cash conversion, which means that very few of these companies are sort of distressed to sell. There are, however, other reasons why you would like to partner up. You want to be part of a gaming village, you want to get the synergetic approach of working with other game makers, you want to get access to our Flow Platform.
I think some of those drivers, as a sort of pull effect, those we are seeing, and I think that when we have discussions, I think being able to discuss the sort of the Flow Platform, being able to discuss how we can work around marketing, how we can work around live ops, how we can work around sort of cross promotion, I think that is exciting to many game entrepreneurs, and I think that's something we see very positive. I still believe that everyone wants to get paid a fair multiple in these times.
I think I would lie if I would say that that multiple gap between public and private companies has disappeared. It's still there. I mean, our job is to figure out how can we bridge that, and how can we still make deals, because we would like to be acquisitive. We have many interesting conversations, but we're not gonna make a deal unless we can make it both operationally, strategically, and financially viable for us.
Very clear. I know you did mention it in your sort of prepared re-remarks, but can you just sort of give a little bit of around the houses on sort of the impact of generative AI within the mobile gaming landscape more broadly, and then MTG in particular, how you're using it and how you see it impacting? Is it just gonna be a productivity tool, or is there an opportunity for it to drive revenue growth medium term?
Yeah, no, I think, more broadly, I think everyone is trying everything from actually making games from scratch through AI, on how to improve the graphics, how to improve live ops, how to improve prototyping, idea creation. I think the ability to use it is quite broad. Then you need to understand the legal framework around it, the dos and don'ts, and how to stay on the right side of that. I think when you look into how we are utilizing so far, it's we do a lot on the graphic side. There's a lot where you can accelerate the work that we're doing. That doesn't mean that we don't need our talented people. You still need them, because the finishing is always done by one of our designers or producers.
I think it's more to help them accelerate their work, increase their output and productivity. We're looking into different live ops initiatives. I think we do see a wide range on areas where it can basically help us to become more productive, to be faster, and develop more content.
That's very clear. Finally, Lasse, thank you very much for your hard work and support. Best of luck with the next adventure.
Thanks, Tom. Appreciate it.
There are no more questions on the teleconference, so I hand the conference back to Anton for any written questions.
Thank you, operator. We have had 3 questions, 2 of which we have covered specifically that we're not going to repeat. Moving on to the next question, which comes from Martin Arnell at DNB Markets: Can you give an indication of how organic revenue growth target for the full year 2023, split between growth in ARPDAU and volumes?
We can't. I think for 2 reasons. One is that it's not necessarily how the business works, because we might see that live ops, for example, is an ARPDAU improvement that could happen. That's where UA would drive up the installs, of course. This will differ very much across the different studios. For example, if you take a PlaySimple, we do expect a increase to continue in DAUs due to the successful scaling of the new games.
However, they are actually also having a higher up DAU on those new games, and hence, it's coming from both. Where InnoGames, as we've discussed, we have seen for quite a while that we've actually been able to increase the ARPDAU due to successful live ops, but unfortunately see decreasing DAUs, which we also do expect to continue. I don't think you should expect any change in those trends, but we cannot give you the breakdown on how the outlook will be delivered based on those trends.
Thank you, Lasse. Moving on to a question from Jacob Edler at Danske Bank. There are a number of questions here, we will start with the first one. You mentioned that InnoGames grew slightly year-over-year in the month of June, in line with the in-app purchase market, which also appeared to have grown slightly in June. Do you have any data yet on how the market has progressed at the start of July?
I think just to be correct on the market growth in June versus InnoGames, if you look at the total market, you're right, Jacob, that looked like it grew. However, if you chop this up to mid-core versus casual, mid-core did not grow. That actually declined in July, and has unfortunately done that for the month leading up to that as well in 2023. It's clear right now that the market is not just the market anymore.
There's definitely different segments in the market, and again, it comes back to how these two different segments were impacted by the marketing regulation from Apple. We're not really seeing, to your question on July, any change in those trends. It looks like still that the casual part of the market is doing very well into July, as it's been doing in the first half of the year. There's no change in mid-core either, in terms of the marketing environment, still continues to look difficult.
Thank you, Lasse. The next question, also from Jacob: "How should we look at adjustments, restructuring costs in InnoGames, which was about SEK 40 million in Q2? Should we still expect one third to be taken in Q3 and adjusted for, roughly?
Yeah. No, we took the cost in Q2. There's some of the cash outflow that will happen still in Q3, which is the approximately one third that you're referring to.
Thank you. The next question is: "Non-PPA amortizations have been quite low in Q1 and Q2. Should we expect these to pick up in H2?
No, I would say that the level we are at now reflects the normalized level when there's no accelerated depreciation of any assets. Then, of course, your subsequent question should be whether we expect any acceleration. I would say, given what happened last year, the acceleration mostly happened within InnoGames on some of the titles. We also, of course, did a larger review of that together with the restructuring, whether there was any acceleration to be done, which did not lead to it. Again, we don't believe right now we are at an artificially low level. Remember, we only invest, in terms of capitalization, 4% of our revenue, and if you look at what does that become at an annualized level, it's not far away from supporting a run rate of 50 million SEK per quarter.
Thank you. Lastly, on a slightly different topic: "Are you able to provide any color on what you classify as near term when it comes to Bloons TD 6 being launched on consoles? Can the people expect that launch already during H2? What can we say there?
That's definitely our ambition. It's always difficult when you work with some of the bigger players, but our ambition is to get it out there in the second half of the year.
Thank you very much, Maria.
Thank you.
And-
Thank you, everyone, for listening in.
Yeah, with that, we have no further questions. You jumped the gun. Thank you very much, everyone. We will speak to you again in October.