Good morning, everyone, and welcome to this exciting day and our announcement of the acquisition of PlaySimple, a leader within the mobile world game genre. My name is Lars Torstensson. And with me today, I have our Group President and CEO, Maria Reddin and Arnd Benninghoff, our EVP Gaming and Esports. We will begin by presenting the transaction and then take your questions in Q and A session. And as always, please keep in mind that only dining participants can ask questions.
With that said, I'm now handing over to you, Maria, to take us through the acquisition together with Arndt.
Thank you, Lars, and thank you all for joining this call. And I think we can then swiftly move on to Slide 4. We very much look forward to presenting to you the acquisition we announced this morning. And we want to tell you why we are so excited about their business and how we see them adding value to our gaming group. But before we're doing so, let me take a step back and just touch upon our strategy.
With our 2 verticals, e sports and gaming, We are uniquely positioned addressing the growing audience of 2,700,000,000 gamers worldwide and with both verticals having a strong underlying growth projection. Our focus lies in building shareholder value through both organic and inorganic initiatives. In esports, we hold a leading position in the market of independent Leaks and platform operators, and we want to continue to build on back on this position. We did announce in Q1 accelerated investments, And this is on back on industry trends, learning made during the pandemic and I'll start to see the light in the tunnel with the return of fiscal events towards end of this year. For us, it's important to diversify our product offerings and further enhance our platform proposition.
Whilst running organic initiatives, we also Continuously seek out for inorganic opportunities equal in esports as in gaming. So if you then can turn to Slide 5. In gaming, we want to build a stronger position within the casual and mid core mobile segment, hence driving acquisitive agenda combined with organic growth. And therefore, very pleased to see the progress we've done in the last 6 to 8 months. Not only do we have a much more exciting organic new games pipeline, But we also done several strategically important acquisitions.
We started with the roll up of the InnoGames minority in early December, which was then followed by the HUCH acquisition and thereafter the Nindikiva acquisition that we now recently also closed. These transactions bring an aligned structure The group, which is very important, but also more so improved genre and revenue profile along with a much broader reach. We are therefore very excited also today to then present our most recent acquisition, PlaySimple. We want to go through and show you the strength of this business And how it will complement our existing companies and help us take important steps forward in order to building a gaming powerhouse. So with that, I hand over to you, Arnd.
Thank you, Mauricio, and hello, everyone. I'm very happy to introduce you to PlaySimple, a leading Fast growing world game studio with strong analytics and an innovative ad tech platform. So let me introduce you to this highly attractive Growth company from India, which has been founded in 2015 by the group of ex singer managers. The business is based in English Gaming Hub, Bangalore And fully focused on word games. With 9 live games in the portfolio, they have built a great business And shown growth trajectory, which is quite extraordinary.
75% of the revenues come from ad revenues. The 4 core titles, which are the driver of PlaySimple rapid growth are all in the world game genre. Let me show you how this translates into a highly attractive financial profile, which has attracted us in the first place. On the left side, You can see the comparison of their fiscal year 2020 2021, which always ends in March. As you can see, they have shown 100 percent top line growth with a highly attractive margin of 24% in 2021.
On the right side, you can see the first the comparison of the 1st 6 months of our calendar year. So 1st 6 months in 2020 and then the 1st 6 months in 2021 where they've just confirmed the growth trajectory The 80% top line growth, so landing now end of June around SEK510,000,000 to SEK540,000,000 revenues and SEK 145,000,000 SEK 255,000,000 in EBITDA. So expanding the EBITDA margin to 28%. And if you take our upon consideration what we're paying for this attractive asset and then look The 6 month EBITDA one where you apply this on the calendar year, then it translates into 10.5x EBITDA multiple, which is, I think, a very fair Attractive, multiple. On the right side, we want to illustrate the growth trajectory by Showing you the quarterly growth.
And here, it's important to highlight that there's not really a material COVID impact. So if you take the Q2 from 2020 and compare it with Q2 this year, You can see they're growing by nearly 100% top line. So there's not a drop and they haven't really benefited from COVID. It's a continuous growth. Also, it's important to call out that now being roughly 8 weeks into the IDFA changes, we haven't really seen in PlaySimple's business Material impact.
It's quite the opposite. They managed to continue the growth top line and show very strong And stable eCPM. The continuous growth of PlaySimple is fueled by the robust operating model. It's a highly data driven model, growing the ATV, and it's based here On PlaySimple's flywheel. So let me just walk you through the flywheel.
Based on their strong analytic system where they capture more than 5,000,000,000 data points per day, A1, a very sophisticated life ops system. The focus on the users and are able to retain the users much It's longer than games than any competitors. The game development cycle is fairly short with 6 to 12 months From the first idea to full commercial launch. Their strong live ops translates into very high retention rates. The day 1 is probably still a bit average since they're not that focused on polishing the games.
But once the games are live based on the data points, Then we retain the users. If you take the day 30 retention rate, which is 12%, it's clearly above market average, which sits around 8% to 10% for Similar casual games. Through the strong retention, this leads to a growing ACV and higher revenues. And here, I just want to stay your attention to also the strong and fast payback of the UA spend. So after 5 months In the current course, they break even.
And based on a 1 year ACV calculation, they are showing around 200% Of war, meaning €1 or €1 invested yields a €2 payback. So this is all driving the growth of the business on the back of Pending EBITDA margins. So to give you another proof point that PlaySimple has built up quality cores, Let me show you how nicely the courts are stacking. Here you see a graph showing the courts from January 2018 until April 21. More than 40% of the revenues of PlaySimple are still driven by cohorts from 2018 to 2020.
And another important learning takeaway here is that the quality of course are the same pre COVID and now Being in May, April 21. So they show exactly similar revenue profile. There's no difference. Let's take a closer look at the 4 core growth games and their stellar retention rates. PlaySimple's approach to game development is following a franchise system.
So they look at their games as franchises. All the following games are also paying or buying into this concept. DCC's editing crossword is the biggest game, But all 4 live games are showing a similar revenue contribution. So there's not a Single game dependency, DTC is around delivering roughly 35% of the revenues, virtual and cost per chain around 25% and the newest game What was already 8% of the revenues. On the right side, you see how nicely DAUs and MAUs are growing.
DAUs growth Year over year was 50%. And the bottom again to highlight the strong retention, and as I said, much strong retention day 3090 and their competitors. And there are already 4 new games ready to be launched in the second half of this year. Four games in the world game and solitaire genre. If this game is already live, that's tiny Crossword Explorer here in the middle, which belongs to the Crossword franchise, already showing very strong retention KPIs.
All games following the success formula, The triangle between genre mastery, strong analytics and live ops. So PlaySimple with its game portfolio and asset capabilities Nike complements our games vertical. They're adding revenue capabilities where we can leverage our advertising revenues. Adding to our audience, there are female players, which is highly attractive. And as you know, we like genre focus and they focus on words and solitaire When we take a look at our gaming powerhouse setup as a whole, Then PlaySimple will help us to accelerate the buildup of our centers of excellence.
So on this layer, And of excellence from Yeal Marketing to ad optimization, PlaySimple with their ad technology Analytics system will champion the ad optimization and help us to build up a cost promotion system. So let me summarize the investment highlights. It's highly profitable growing business focusing on the broad genre, A really data driven org, a strong experience management and they've developed an in house ad stack piece of software, which we can leverage across our group to cost promote and become less dependent on external UA channels. The data driven operating model is very strong and guarantees a continuous growth over the next years and help us to adapt to any market changes So that's why I believe it's a great acquisition for
Thanks, Arndt. A few words on the financing structure of this very exciting transaction then. The upfront consideration amounts to USD 360,000,000 or around SEK 3,090,000,000 Swedish krona, and would be made up of 77% in cash and 23% in shares. The transaction would be mainly debt financed combined with available cash. We are pleased that the founders of PlaySimple will take 4% of their consideration in shares, showing confidence in the bright future of the PlaySimple business.
These shares will have a lockup period of up to 2 years. The sellers are also entitled to a performance based earn out estimated by us to amount to around USD 150,000,000 over the coming 3.5 years. The earn out will be fully paid in cash. We are now a much more diversified gaming business. This also means that we are ready to carry debt in this transaction following the strong support provided by our shareholders in our earlier transactions during the last 6 to 9 months.
Hence, the upfront cash consideration will be financed by using cash at hand, a secured credit facility of SEK 1,000,000,000 and a bridge loan of the same amount. The credit facility is a 2 plus 1 year construct, while the bridge is 12 months. We will now initiate the process of evaluating most attractive refinancing alternative for the bridge loan facility, including but not limited to the bond market. The equity consideration would be paid with MTG B Shares following Reserve Bank of India's approval. This is required in order for the sellers of PlaySimple to receive payment in shares.
As a result, MTG is therefore unable to issue Class B shares upon closing and shares will be issued once approval has been obtained. Our net debt following the closing of PlaySimple will amount to approximately SEK 1,000,000,000, which would be equivalent to approximately 4 times trading 12 month consolidated adjusted EBITDA on a pro form a basis. This is a leverage level that we feel very comfortable with. I would like to hand over to you again, Maria.
Thank you. And as Lars said, I mean, we are shape and form as part of this Position and also the recent acquisition. So therefore, we want to take the opportunity to share with you our unaudited pro form a financials for the new group. We're very happy to see the strength and the growth profile that we are building. On a pro form a basis for 2020, we will report revenues of SEK 4,400,000,000 Krona with a margin of 29%.
And if we look at Q1 2021, what is really strong are the pro form a numbers that are close to DKK 1,200,000,000 And they're having a high underlying growth rate and the 8% organic growth we reported in Q1, whilst also having a margin expansion. Looking then at the breakdown of the revenues. We are enhancing our share of mobile revenues, which is now close to 70%. We diversified our revenue streams to also include paid apps, and we're increasing our share of advertising contribution. We now reach over more than 30,000,000 monthly active users, and we're having 53 live games ranging across the racing, idle, CityBuilder, Tower Defense and now also the world game genre.
So with this, we're very proud when we look at our current games portfolio. And as you can see on this slide, it's becoming very balanced. All in all, we have 53 live games in different growth stages and 6 in games in development. This is a slide, when we look at it, that gets us excited for the year to come. So with that, I'll conclude my part, and I hand back to you Lars.
Thank you, Maria. That concludes the formal presentation of our PlaySimple acquisition. We are now ready to take any questions that you might have on the transaction. So Operator, can you please help us with the first question?
Of course. Thank you very much. The first question comes from the line from Fredrik Olsen from the Handelsbanken. Banken, your line is open.
Thank you very much. Hi, Lars. Hi, Maria. So I have a couple of questions on the acquisition itself. First of all, I was wondering if it's possible for you to disclose the revenue distribution by platform for PlaySimple?
Thank you, Frederic. Revenue by platform for PlaySimple, We haven't disclosed it, but aren't are you able to support there with some indications?
Yes, sure. I mean these are all mobile revenues. And when you meet platform between iOS and Android, it's rather now around 60% Android and 40% iOS.
All right. Thank you very much. And I also see that the revenue model, I mean, advertising is the largest share. Within this segment, conversion rates tend to be quite high. So I was wondering regarding in app purchases.
Is there any plans to implement this Or to scale the advertising expertise to the rest of the group and then vice versa, so to speak?
So Arndt could you take that question, please?
Yes. So PlaySimple has IAP revenues Between 30% to 25%, which is quite stable also. The ad revenues are more profitable since we don't pay any app store tax on them. We definitely want to leverage their ad revenue capabilities across the group since we have ad revenues 10% roughly in Touch, Ninja, Kiwi and also In Kongregate, in the near future, we could also consider to implement ads in mid core games as long we can secure a great game experience. The so this is stable and well balanced and helps us also to diversify our revenue streams across the portfolio.
All right. Thank you. That was it for me.
Thank you, Frederik. And operator, could we have the next question, please?
At the moment, we have no further questions. We have no further questions coming through.
Okay. That is Understood. In that case, I should just wait a few minutes just to see if there's anyone on the Well, in that case, we see it as the presentation is crystal clear to the audience as well, which is Very good. So thank you, operator. That concludes the conference call.
And we appreciate, of course, that you take the time. And we look forward to stay in touch. And please feel free to reach out to either myself or Maria during the course of the day if you would like to follow-up with any additional questions. So that concludes the conference call. Thank you very much, and stay safe.