Qiiwi Games Q2 2025 slides: Revenue declines amid AI-powered efficiency push

Introduction & Market Context

Qiiwi Games AB (publ) (QIIWI) presented its second-quarter 2025 results on August 21, showing a continued revenue decline but highlighting its strategic shift toward AI integration to improve operational efficiency. The company’s stock was trading up 2.23% on the day of the presentation, suggesting investors may be responding positively to the company’s cost-cutting measures and AI-focused strategy.

The mobile gaming company reported quarterly revenue of 3.3 million Swedish kronor (MSEK), down from 5.4 MSEK in the same period last year, while maintaining a cash position of 14.8 MSEK at the end of the quarter.

Quarterly Performance Highlights

Qiiwi Games experienced a significant year-over-year revenue decline in Q2 2025, though management noted that revenue had stabilized during the quarter with positive month-over-month development. The company’s flagship title Backpacker Go! emerged as the primary revenue driver, accounting for 44% of total revenue, followed by Wordington (24%) and Extreme Makeover (9%).

As shown in the following chart of quarterly revenue performance:

Despite the revenue challenges, Qiiwi reported a slight improvement in EBITDA, which came in at -1.8 MSEK compared to -2.0 MSEK in Q2 2024. The company expects further EBITDA improvements in coming quarters as recent cost-saving initiatives take full effect.

Detailed Financial Analysis

The company’s user acquisition (UA) investments decreased substantially to 1.2 MSEK, representing a 55% reduction compared to Q2 2024 and a 48% decrease from Q1 2025. Management acknowledged that reduced marketing spend negatively impacted revenue but emphasized that UA decisions were based on return on advertising spend (ROAS) results, with a target of achieving 100% return on investment within 180 days.

A notable bright spot in Qiiwi’s financial results was the improvement in Average Revenue Per Daily Active User (ARPDAU), which increased 18% year-over-year to 1.54 SEK. The company attributed this improvement primarily to the launch of Backpacker Go!, which has demonstrated significantly higher monetization rates than the average across Qiiwi’s game portfolio.

The comprehensive financial summary for Q2 2025 shows:

Strategic Initiatives

Qiiwi Games has placed artificial intelligence at the center of its strategic vision, emphasizing how AI integration is helping the company operate more efficiently with a lean team structure. Management highlighted that AI-generated prototypes are providing faster insights into game potential, while "The Qiiwi Template" is streamlining the game testing process.

The company’s presentation emphasized this AI-focused approach:

In terms of product development, Qiiwi tested five game ideas during the quarter, with four being discontinued and one continuing under testing. The company is also evaluating a zen theme within its word games category. Its game development process follows a structured approach from internal prototype through to global launch:

For its live operations, Qiiwi has now incorporated Backpacker Go! into its core portfolio and is planning value-creating initiatives for this title in Q3. Additionally, the company has launched a reworked version of its MasterChef game, which is currently under evaluation.

Forward-Looking Statements

Looking ahead, Qiiwi Games emphasized its commitment to maximizing the impact of AI services throughout its work processes. The company views AI agents as a cost-effective alternative to hiring additional employees, positioning this approach as key to achieving positive cash flow in the future.

As illustrated in the company’s forward-looking strategy:

Management expressed optimism about the company’s direction, stating they are "on the right track to reach positive cash flow" and see "good opportunities to take big steps quickly" in the future. While specific financial guidance wasn’t provided, the company expects to see improved EBITDA results in the coming quarter as cost-saving measures take full effect.

The presentation suggests Qiiwi is at a pivotal point in its business transformation, balancing revenue challenges with efficiency improvements as it works toward sustainable profitability through its AI-powered approach to game development and operations.

Full presentation:

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