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Enad Global 7 AB
Quarterly Report • Nov 12, 2024
8648_10-q_2024-11-12_8b870ee8-2090-4bf8-8699-201f64c20dce.pdf
Quarterly Report
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INTERIM REPORT - JUL-SEP 2024
SUMMARY COMMENTS
For the third quarter, EG7 delivered Net Revenue of SEK 465.7 (517.3) million. EBITDA for the period came in at SEK 73.8 (114.5) million and Adjusted EBITDA was SEK 101.7 (140.7) million, corresponding to an Adjusted EBITDA margin of 21.8 (27.2) percent.
The third quarter performance represents the best quarterly results so far this year. As communicated previously, the larger part of the group's performance this year is weighted more towards the latter half of the year. The third quarter performance uptick is representative of this, and we expect similar strong performance for the fourth quarter to finish out the year.
There were several notable highlights for the period and shortly thereafter:
- Acquisition of Singularity 6 in July.
- Release of Core Keeper on PlayStation, Xbox and also exiting out of early access on Steam.
- My Singing Monsters' annual anniversary celebration in September, which resulted in a nice performance boost.
- Release of MechWarrior 5: Clans shortly after the quarter-end.
For the full year, the group's performance expectations remain around SEK 1.8 billion in Net Revenue. Adjusted EBITDA margin expectation has been lowered to 20 percent based on the reduced expectations for MechWarrior 5: Clans for the fourth quarter, resulting from its delayed release compared to plan.
HIGHLIGHTS FOR THE QUARTER
- Net Revenue of SEK 465.7 (517.3) million, representing an FX-adjusted organic decline of 12.8 percent.
- EBITDA of SEK 73.8 (114.5) million and Adjusted EBITDA of SEK 101.7 (140.7) million.
- EBIT of SEK -4.5 (43.0) million and Adjusted EBIT of SEK 44.3 (78.4) million.
- Profit before tax of SEK -13.5 (37.1) million.
- Earnings per share of SEK -0.33 (0.11). Adjusted earnings per share of SEK 0.11 (0.43).
- Cash flows from operations of SEK 35.6 (112.8) million.
- Cash balance of SEK 218.5 million with no material bank debt.
KEY METRICS
| UARTER | ACCUMULATED | FULL YEAR | |||
|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC | |
| SEKm, except per share data | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net Revenue | 465.7 | 517.3 | 1,200.1 | 1,571.9 | 2,045.0 |
| Growth | -10.0% | 16.4% | -23.7% | 20.3% | 9.6% |
| Organic FX adj. growth* | -12.8% | 13.8% | -24.9% | 14.6% | 5.5% |
| EBITDA* | 73.8 | 114.5 | 184.0 | 396.4 | 495.9 |
| Adjusted EBITDA* | 101.7 | 140.7 | 196.9 | 443.9 | 542.0 |
| Adjusted EBITDA margin, %* | 21.8% | 27.2% | 16.4% | 28.2% | 26.5% |
| EBIT | -4.5 | 43.0 | 9.7 | 206.9 | 252.1 |
| Adjusted EBIT* | 44.3 | 78.4 | 43.4 | 277.5 | 321.4 |
| Adjusted EBIT margin, %* | 9.5% | 15.2% | 3.6% | 17.7% | 15.7% |
| Profit before tax | -13.5 | 37.1 | -12.8 | 181.7 | 216.0 |
| Net profit | -29.2 | 10.0 | -53.0 | 99.7 | 156.1 |
| EPS before and after dilution | -0.33 | 0.11 | -0.60 | 1.12 | 1.76 |
| Adjusted EPS* | 0.11 | 0.43 | -0.30 | 1.76 | 2.38 |
| Adjusted EPS, excl. M&A related amortizations* | 0.42 | 0.73 | 0.54 | 2.63 | 3.54 |
* For definitions, see section "Definitions of alternative performance measures" on page 28
COMMENTS FROM THE CEO
Ji Ham, CEO
A stable quarter
For the period, EG7 generated Net Revenue of SEK 465.7 (517.3) million, EBITDA of SEK 73.8 (114.5) million and Adjusted EBITDA of SEK 101.7 (140.7) million, representing an Adjusted EBITDA margin of 21.8 (27.2) percent. Operating cash flow was SEK 35.6 (112.8) million. Similar to prior quarters this year, the year-over-year decline is due to the unfavorable comparison against My Singing Monsters' (MSM) elevated performance in 2023. The third quarter performance represented the strongest quarterly results so far this year, driven by a more robust product release slate, along with the additional contributions from the recently acquired Singularity 6 (S6). Furthermore, Big Blue Bubble delivered a nice sequential performance improvement from Q2 following a solid anniversary campaign in September for MSM.
Making good progress against our plans
During the quarter, we successfully acquired S6 (see note 8, page 26, for transaction details). For the period, S6 contributed with SEK 27.5 million in Net Revenue with EBITDA margin near breakeven. S6 is making steady progress against the goal of bringing its game, Palia, to a broader audience in 2025 with planned releases on PlayStation and Xbox. Our expectation is for Palia to become a strong contributor to Daybreak and EG7's overall performance upon its full release across all major console platforms.
EG7 is positioned well with a combination of a strong balance sheet and a unique portfolio of live service products, providing stable and predictable cash flows. As a result, we are in a prime position to target opportunistic situations, arising out of the on-going market readjustment process. We believe that there will likely be more compelling investment opportunities similar to S6 over the near- to medium-term and we remain poised to target such situations to generate potential outsized returns for the group.
In addition to M&A, we are continuing to execute against our organic growth strategy. Shortly after the quarter-end, Piranha successfully released MechWarrior 5: Clans (MWC) on October 17th. For more than a decade, Piranha has successfully developed, published and serviced multiple titles based on the MechWarrior IP, including MechWarrior Online and MechWarrior 5: Mercenaries. Building on its knowledge and expertise with the IP and the gameplay tailored for the franchise, Piranha brought to market MWC, which is being hailed as one of the best games in MechWarrior franchise history. MWC released to solid community fanfare and strong critical reception, achieving 79 percent rating on Metacritic. Based on the initial sales and the positive reception, we expect the game to outperform its predecessor, MechWarrior 5: Mecenaries, with sales of over one million units over its IP license term. In addition, Piranha plans to deliver continuing content and support with additional downloadable content (DLC) releases going forward.
Maintaining balance
We have been operating our business conservatively and proactively seeking to improve operating efficiency and profitability. The recent cost-saving efforts resulted in SEK 103 million of annual savings is a good example. We have proven to prioritize stability and profitability over aggressive investing to chase growth given the ongoing market challenges. However, we are not simply playing defense and are still making good progress towards our long-term growth plans with solid steps as evidenced by the successful release of MWC and the acquisition of S6 this quarter. We are positioned well to continue making positive progress in an intentional and measured way, balancing the risk with upside, in order to deliver solid risk-adjusted returns for our shareholders.
BUSINESS OVERVIEW
A leading global live service game developer and operator
Combining titles from Daybreak, Big Blue Bubble and Piranha, EG7 currently operates 10 long-life cycle IPs, primarily live service games. This portfolio is a key differentiator for the Group and provides EG7 with a solid foundation of more predictable revenues and cash flows. Net Revenue from this portfolio in Q3 amounted to SEK 304.6 million, corresponding to 65.4 percent of Net Revenue for the Group.
Iconic world-class brands
EG7 is home to some of the most iconic IPs, both first- and third-party brands. First-party brands are IPs exclusively owned and managed by EG7, while third-party brands are owned by external parties, with EG7 entrusted to develop and operate games based on these IPs.
- Key first-party brands include:
- o EverQuest, considered to be one of the three most iconic fantasy MMO brands in the world together with World of Warcraft and Ultima Online.
- o H1Z1, the very first battle royale game that was credited as one of the inspirations for Fortnite, with over 40 million life-to-date (LTD) registrations.
- o My Singing Monsters, which has over 165 million (LTD) registrations on mobile and PC, reached top 10 in over 100 countries in the App Store games category and the No. 1 spot in more than 15 countries 10 years after its release.
- o Palia, a recently launched cozy community/life simulation game.
- Top tier global third-party brands:
- o DC Comics from Warner Bros, with continuing pipeline of content from blockbuster feature films and TV shows.
- o The Lord of the Rings, arguably the most iconic classic fantasy IP in the world.
- o Dungeons & Dragons, the legendary fantasy IP with a passionate fan base worldwide.
- o Magic: The Gathering, the world's number one trading card game from Wizards of the Coast.
These brands differentiate our portfolio of games from competitors and provide great opportunities to leverage them further toward continuing content development and new future products.
Stable foundation and risk-controlled growth
Our portfolio of franchise and live-service games is unique within the gaming industry, combining steady growth with ongoing content releases for our titles. These games, anchored by strong iconic game-titles and loyal player bases, create a stable and predictable business model. Unlike traditional one-off releases, this approach ensures continuous player engagement and more recurring revenue, providing a solid foundation for long-term success while lowering the overall risk.
In addition, we've been successful in adding new games over time, expanding our portfolio while maintaining prudent low-risk M&A activities within our circle of competence. This strategy not only diversifies our offerings but also strengthens our position within the market, creating a stable foundation for sustainable growth with reduced long-term volatility.
Net Revenue, Adjusted EBITDA, and EBIT
SEKm
SUMMARY BY SEGMENT SEKm
Daybreak QUARTERLY 250 100% 212 90% 188 181 182 200 80% 167 70% 150 60% 50% 100 40% 30% 50 20%
42
Adjusted EBITDA —
1Q24
Big Blue Bubble
Piranha
0
3Q23
Net Revenue
4Q23
Toadman
52
3Q24
Adj EBITDA Margin
12
2Q24
10%
0%
Fireshine
Petrol
DAYBREAK
For Q3, Daybreak contributed Net Revenue of SEK 212.3 (181.3) million, up 17.1 percent from the prior year, the organic growth was 1.9 percent, and Adjusted EBITDA of SEK 52.1 (34.3) million. Adjusted EBITDA margin amounted to 24.5 (18.9) percent.
On July 2, 2024, Daybreak acquired 100 percent of Singularity 6 (S6) for SEK 53.1 million, with additional contingent payments tied to a five-year performance period. Daybreak retains full recoupment rights and has allocated up to SEK 100 million for the development of Palia, targeting a release out of beta on both PC and consoles next year. Much of the development is focused on improving the free-to-play revenue model in the game together with brand-new content for the release. S6 was fully integrated into Daybreak shortly after the transaction and contributed SEK 27.5 million in Net Revenue for the quarter. During Q3, Daybreak invested SEK 22.4 million in capitalized development for Palia.
As a whole Daybreak's portfolio performed in-line with expectations during the quarter. DC Universe Online's new Episode 48: Harley Quinn vs. Apokolips met expectations, and with a player reengagement push and an Xbox release planned for Q4, we anticipate a gradual increase in activity from current levels. Dungeons & Dragons Online's expansion, launched in June, exceeded expectations, though earlier challenges from the year continued to impact overall results for the third quarter. Following the sale of the IP and transition of service to Toadman, Planetside 2 has performed at a lower level, but we are now seeing signs of stabilization at its current level. EverQuest's anniversary year continues to deliver strong sales. The launch of The Lord of the Rings Online's new Legendary Server in August was a solid success, boosting KPIs across the board for the game. Magic: The Gathering Online (MTGO) has shown strong engagement from core players throughout the year, with increasing active player base. Finally, the collaboration with Cold Iron is proceeding towards planned launch next year.
BIG BLUE BUBBLE
Big Blue Bubble delivered Net Revenue of SEK 83.9 (123.4) million, corresponding to a 32.0 percent decline compared to the boosted quarter last year. Adjusted EBITDA amounted to SEK 42.0 (87.9) million, representing 50.1 percent margin. The decline is reflective of the unfavorable comparison against the peak of MSM's viral uptick that was seen last year. While lower compared to the peak, Big Blue Bubble is performing at levels significantly higher than before the viral uptick, with Q3 2024 Net Revenue 74.9 percent higher than Q3 2022 Net Revenue of SEK 47.9 million. During the Anniversary Campaign MSM saw strong player engagement. As previously communicated, MSM's revenue is now back to a pre-peak pattern, but at an elevated level. The community-focused marketing strategy from the MSM team, which drove the strong uptick the game experienced in 2022, continues to be a key success factor for the game's sustained strong and stable performance.
PIRANHA
Net Revenue for the quarter came in at SEK 15.7 (27.8) million, representing a 43.4 percent decline. Adjusted EBITDA amounted to SEK 2.7 (8.4) million, representing 17.1 percent margin. The third quarter was defined by focus on finalizing MechWarrior 5: Clans which was released across PC and Console on October 17th . The release is yet another step in our ambition to strengthen our repeatable and predictable business model based on recognized IP franchises with dedicated fan base. The game released to positive community and critical reception, achieving 79% rating on Metacritic. The initial performance has been positive, however, due to the game's delayed release from the initial release plan in September to October 17th, the available sales window (number of days for sale) in the fourth quarter was reduced, which will in turn reduced the expected revenues from the title for 2024 and pushing some of the sales into 2025. However, we remain confident in the overall life-time performance potential for the title. Our overall expectation is that the new title will ultimately sell more than 1 million units over its IP license term. With several expansions and downloadable content (DLC) planned for the coming periods, MechWarrior 5: Clans is poised to perform better than its predecessor, MechWarrior 5: Mercenaries, and generate attractive long tail revenues.
TOADMAN
Toadman's Net Revenue came in at SEK 8.8 (14.3) million, representing 38.1 percent decline yearover-year, Adjusted EBITDA came in at SEK -2.0 (-5.5) million for the period. Amid the market slowdown over the past year, Toadman has faced challenges in scaling its WFH business.
Consequently, management initiated further business optimization measures aimed at achieving immediate profitability. These efforts are expected to generate total annual cost savings of approximately SEK 63 million. As part of this restructuring, the Stockholm, Oslo, and Visby offices were closed during the quarter, all-in-all impacting around 100 employees previously associated with Toadman. The optimization efforts were finalized by the end of October.
FIRESHINE
Fireshines Net Revenue came in at SEK 109.7 (119.6) million, representing 8.3 percent decline yearover-year. Adjusted EBITDA came in at SEK 15.9 (18.9) million, resulting in a 14.5 percent margin. The quarter saw the 1.0 release of Core Keeper and Shadows of Doubt, the early access release of REKA and the physical release of Planet Zoo among others. The releases have overall performed according to expectations, and we are now seeing solid performance for the rest of the year.
PETROL
For Q3, Petrol's Net Revenue came in at SEK 35.3 (50.9) million, representing a 30.7 percent decline year-on-year. Adjusted EBITDA was SEK 0.3 (1.9) million. The market weakness continues to put pressure on Petrol's performance. With the new cost-saving efforts, the company's profit margin has improved. Petrol's performance could remain muted until the market turns around. In the longrun, management remains confident the business will stabilize and will return to a steady performance in-line with levels prior to the market downturn.
FINANCIAL OVERVIEW
Net Revenue and Operating Profit
| QUARTER | ACCUMULATED | FULL YEAR | |||||
|---|---|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN- SEP | JAN-DEC | |||
| SEKm | 2024 | 2023 | % CHG | 2024 | 2023 | % CHG | 2023 |
| Net Revenue | 465.7 | 517.3 | -10.0% | 1,200.1 | 1,571.9 | -23.7% | 2,045.0 |
| Adjusted EBITDA* | 101.7 | 140.7 | -27.7% | 196.9 | 443.9 | -55.6% | 542.0 |
| EBITDA* | 73.8 | 114.5 | -35.6% | 184.0 | 396.4 | -53.6% | 495.9 |
| Adjusted EBIT* | 44.3 | 78.4 | -43.5% | 43.4 | 277.5 | -84.4% | 321.4 |
| EBIT | -4.5 | 43.0 | -110.5% | 9.7 | 206.9 | -95.3% | 252.1 |
| % Margins | |||||||
| Adjusted EBITDA margin* | 21.8% | 27.2% | 16.4% | 28.2% | 26.5% | ||
| EBITDA margin* | 15.8% | 22.1% | 15.3% | 25.2% | 24.2% | ||
| Adjusted EBIT margin* | 9.5% | 15.2% | 3.6% | 17.7% | 15.7% | ||
| EBIT margin | -1.0% | 8.3% | 0.8% | 13.2% | 12.3% |
* For definitions, see section "Definitions of alternative performance measures" on page 28
Net Revenue in Q3 2024 came in at SEK 465.7 (517.3) million, representing a decline of -10.0 percent year-over-year. Adjusted EBITDA and Adjusted EBIT were SEK 101.7 (140.7) million and SEK 44.3 (78.4) million for the quarter, representing 21.8 percent and 9.5 percent margins respectively. The adjustment for non-recurring items affecting EBITDA in the third quarter was SEK 27.9 (26.2) million, SEK 7.1 million referring to the acquisition of Singularity 6 and SEK 17.4 million in connection with the restructuring of Petrol and Toadman.
Cash flow in short
| QUARTER | ACCUMULATED | FULL YEAR | |||
|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC | |
| SEKm | 2024 | 2023 | 2024 | 2023 | 2023 |
| Operating profit (EBIT) from continuing operations | -4.5 | 43.0 | 9.7 | 206.9 | 252.1 |
| Adjustment for non-cash flow items | 87.3 | 78.2 | 149.8 | 222.6 | 271.4 |
| Financial net | -1.5 | 1.9 | 9.1 | -9.3 | -16.8 |
| Taxes paid | 1.0 | -11.3 | -98.2 | -51.7 | -65.0 |
| Operating cash flows before balance sheet cash | 82.3 | 111.8 | 70.4 | 368.5 | 441.6 |
| flow impact | |||||
| Change in net working capital | -46.7 | 1.0 | -72.2 | -31.3 | -3.8 |
| Cash flow from operations | 35.6 | 112.8 | -1.8 | 337.1 | 437.8 |
| Cash flow from investment activities | -119.5 | -83.0 | -209.8 | -168.3 | -231.5 |
| Cash flow from financing activities | -7.0 | -7.4 | -59.0 | -120.7 | -126.0 |
| Cash and cash equivalents, start of period | 316.7 | 454.0 | 480.9 | 407.8 | 407.8 |
| Cash flow for the period | -91.0 | 22.4 | -270.6 | 48.2 | 80.3 |
| Exchange rate differences | -7.1 | -3.8 | 8.2 | 16.6 | -7.2 |
| Cash and cash equivalents, end of period | 218.5 | 472.5 | 218.5 | 472.5 | 480.9 |
For Q3 2024, EG7 had a Net cash outflow of SEK -91.0 (22.4) million. Cash flow from operating activities was SEK 35.6 (112.8) million. Net working capital was SEK -46.7 (1.0) million of which SEK -36.4 million is attributable to accrued revenue in Fireshine with the largest impact referring to the release of Core Keeper 1.0 and REKA. Cash flow from Investment activities was affected by SEK - 40.6 million in cash paid for the acquisition of Singularity 6 (S6) the acquired liquidity in S6 amounted to SEK 13.5 million. Investment activities also consist of SEK -21.4 million of capitalized development expenses for MechWarrior 5: Clans, SEK -22.4 million of capitalized development for our new game Palia in S6, SEK -13.5 million for Fireshine publishing business and SEK -31.8 million for Cold Iron publishing in Daybreak and the remainder SEK 3.3 million is attributable to other investments. Cash flow from Financing activities was only impacted by office-related leasing of SEK -7.0 million. The foreign exchange rate fluctuations in liquid funds resulted in SEK -7.1 million. The group's cash and cash equivalents available at the end of the period amounted to SEK 218.5 million.
OTHER INFORMATION
The Share and Shareholders
| SHAREHOLDER (30-09-2024) | No. of Shares | Capital % |
|---|---|---|
| Jason Epstein | 8,582,320 | 9.69% |
| Settecento LTD | 6,159,140 | 6.95% |
| Johan Svensson | 5,538,828 | 6.25% |
| Alta Fox Capital | 5,347,681 | 6.04% |
| Defa Endeavour AS | 4,533,605 | 5.12% |
| Avanza Pension | 3,632,140 | 4.10% |
| Chelverton Asset Management | 3,380,000 | 3.81% |
| Aguja Capital GmbH | 3,157,432 | 3.56% |
| Forthmoore Limited | 2,919,526 | 3.30% |
| Rasmus Davidsson | 2,872,743 | 3.24% |
| Alexander Albedj | 2,692,105 | 3.04% |
| Ji Ham | 2,018,472 | 2.28% |
| Nordnet Pensionsförsäkring | 1,788,675 | 2.02% |
| Alan Hunter | 1,635,680 | 1.85% |
| James Cato | 1,507,162 | 1.70% |
| Other shareholders | 32,838,017 | 37.06% |
| Total | 88,603,526 | 100.00% |
EG7 stock is listed on Nasdaq Stockholm with the ticker symbol 'EG7.' As of September 30, 2024, the total number of shares outstanding was 88,603,526 and the closing share price was SEK 15.20 per share.
Related Party Transactions
- During the period Toadman delivered SEK 8.5 million in WFH game development to Cold Iron LLC, this has been added to the outstanding receivables of SEK 12.0 million.
- EG7 has made a total investment of SEK 191.1 million in Cold Iron LLC's new game, where SEK 31.8 million was paid during the period. This investment will be recouped on game release, and before any revenue share between the companies kicks in.
For further details on related party transactions, please see Note 7.
Investments
| Project | lnv | estment | Remaining investment | Total budgeted investment |
Book value |
Game Release |
|---|---|---|---|---|---|---|
| SEKm | 2023 | 2024 YTD | 30th Sep | |||
| *MW5 Clans | 42.7 | 57.9 | 0.0 | 111.2 | 106.7 | 2024 |
| *Cold Iron | 122.6 | 82.7 | 113.6 | 318.8 | 196.1 | 2025 |
| *H1Z1 | 2.1 | 4.1 | 246.1 | 252.3 | 0.0 | 2026 |
| **Palia | 0.0 | 104.0 | 62.9 | 166.8 | 103.1 | 2025 |
| MW Clans DLCs | 0.0 | 2.0 | 56.3 | 58.3 | 2.0 | |
| Live game portfolio | 13.1 | 1.5 | - | - | 18.7 | - |
| Fireshine portfolio | 56.8 | 48.7 | - | - | 75.7 | - |
| Total | 237.2 | 300.9 | 478.8 | 907.5 | 50.2 |
*Investment in new growth initiatives for 2023-24 amount to SEK 312.1 million.
Variance may arise due to timing of investments/capitalization and foreign exchange (FX) effects.
**Palias investment figure includes Intangible assets allocated at the acquisition, purchase-price-allocation (PPA).
- MW5 Clans DLCs –After the release of MechWarrior 5: Clans the team is now focusing on the development and shipment of DLCs.
- Cold Iron The development is proceeding according to plan and budget, and the game is planned for release mid-2025.
- H1Z1 Currently in pre-production phase, Daybreak is aiming to enter the production phase for the title in the later part of 2024.
- Palia Was acquired together with the studio S6 on 2 July 2024, the game is available on Open Beta for PC and Nintendo Switch, a full launch of the game is slated across PC and all consoles during 2025.
Shareholder Capital return
Shareholders approved a dividend of SEK 39.9 million for 2023 at the EGM in December, corresponding to SEK 0.45 per share to be distributed quarterly in two equal installments during the first half of 2024. SEK 0.23 was paid on 6 March 2024, and the second instalment of SEK 0.22 was paid on 7 June 2024.
Annual General Meeting
The 2024 Annual General Meeting was held on June 19, 2024, in Stockholm.
Risks
Risks associated with the company's share are included in the annual report for 2023.
Auditor
Öhrlings PricewaterhouseCoopers AB (PwC) is the company's auditor and is represented by Niklas Renström.
FINANCIAL REPORTS
Consolidated income statement
| QUARTER | ACCUMULATED | FULL YEAR | ||||
|---|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC | ||
| SEKm | Note | 2024 | 2023 | 2024 | 2023 | 2023 |
| Net Revenue | 2,3 | 465.7 | 517.3 | 1,200.1 | 1,571.9 | 2,045.0 |
| Other Revenue | 3.5 | 9.7 | 54.7 | 27.2 | 42.5 | |
| 469.2 | 527.0 | 1,254.8 | 1,599.1 | 2,087.5 | ||
| Own work capitalized | 44.2 | 18.9 | 86.4 | 63.8 | 85.6 | |
| Operating expenses | ||||||
| Cost of goods and services sold | -139.8 | -167.0 | -326.9 | -457.6 | -618.7 | |
| Other external expenses | -75.7 | -54.6 | -212.7 | -192.5 | -262.0 | |
| Personnel expenses | -222.7 | -177.4 | -611.8 | -580.7 | -762.6 | |
| Other expenses | -1.4 | -32.4 | -5.7 | -35.7 | -34.1 | |
| Operating profit before depreciation and amortization (EBITDA) |
73.8 | 114.5 | 184.0 | 396.4 | 495.9 | |
| Depreciation of tangible and right-of-use assets |
-17.9 | -7.5 | -39.5 | -30.7 | -42.0 | |
| Operating profit before amortization of intangible assets (EBITA) |
55.8 | 107.0 | 144.5 | 365.8 | 453.9 | |
| Amortization and impairment of acquisition-related intangible assets |
-34.5 | -33.4 | -92.9 | -97.1 | -129.4 | |
| Amortization and impairment of other intangible assets |
-25.9 | -30.6 | -41.9 | -61.8 | -72.4 | |
| Operating profit (EBIT) | -4.5 | 43.0 | 9.7 | 206.9 | 252.1 | |
| Financial net | 4 | -9.0 | -5.9 | -22.4 | -25.1 | -36.1 |
| Profit before tax | -13.5 | 37.1 | -12.8 | 181.7 | 216.0 | |
| Tax expense for the period | -15.7 | -27.1 | -40.2 | -82.1 | -59.9 | |
| NET PROFIT/LOSS FOR THE PERIOD | -29.2 | 10.0 | -53.0 | 99.7 | 156.1 |
The Net Profit for the period is fully attributable to the parent company's shareholders.
| EARNINGS PER WEIGHTED AVERAGE NUMBER OF SHARES |
QUARTER | ACCUMULATED | FULL YEAR | ||
|---|---|---|---|---|---|
| JUL-SEP 2024 |
JUL-SEP 2023 |
JAN-SEP 2024 |
JAN-SEP 2023 |
JAN-DEC 2023 |
|
| Earnings per share before and after dilution (SEK) |
-0.33 | 0.11 | -0.60 | 1.12 | 1.76 |
| Average number of shares before and after dilution |
88,603,526 | 88,603,526 | 88,603,526 | 88,603,526 | 88,603,526 |
Consolidated comprehensive income
| QUARTER | ACCUMULATED | ||||||
|---|---|---|---|---|---|---|---|
| SEKm | JUL-SEP 2024 |
JUL-SEP 2023 |
JAN-SEP 2024 |
JAN-SEP 2023 |
JAN-DEC 2023 |
||
| Net profit for the period | -29.2 | 10.0 | -53.0 | 99.7 | 156.1 | ||
| Other comprehensive income | |||||||
| Items that will be reclassified to profit or loss |
|||||||
| Translation difference | -166.4 | -27.2 | 26.5 | 159.5 | -118.2 | ||
| Deferred tax | 0.3 | 0.0 | 0.0 | -0.2 | 0.2 | ||
| Other comprehensive income for the period, after tax |
-166.1 | -27.2 | 26.5 | 159.3 | -118.0 | ||
| Comprehensive income for the period |
-195.3 | -17.2 | -26.5 | 259.0 | 38.1 |
The comprehensive income for the period is attributable in its entirety to the parent company's shareholders.
Consolidated balance sheet
| SEKm | Note | 30 SEP 2024 | 30 SEP 2023 | 31 DEC 2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 3,213.7 | 3,419.0 | 3,181.7 | |
| Other intangible assets | 5 | 827.4 | 687.5 | 667.8 |
| Tangible non-current assets | 36.0 | 27.6 | 30.3 | |
| Right-of-use assets | 60.7 | 47.1 | 74.7 | |
| Deferred tax assets | 167.9 | 122.4 | 149.7 | |
| Other non-current receivables | 6 | 4.6 | 5.5 | 4.5 |
| Total non-current assets | 4,310.3 | 4,308.9 | 4,108.7 | |
| Current assets | ||||
| Inventory | 12.7 | 20.2 | 14.0 | |
| Current receivables | 6 | 274.1 | 341.0 | 269.2 |
| Cash and cash equivalents | 6 | 218.5 | 472.5 | 480.9 |
| Total current assets | 505.3 | 833.8 | 764.1 | |
| TOTAL ASSETS | 4,815.6 | 5,142.7 | 4,872.8 | |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to the parent company's shareholders | 3,874.2 | 4,161.2 | 3,900.6 | |
| Total equity | 3,874.2 | 4,161.2 | 3,900.6 | |
| Non-current liabilities | ||||
| Liabilities to credit institutions | 2.3 | 3.0 | 2.8 | |
| Leasing liabilities | 42.0 | 32.2 | 52.5 | |
| Deferred tax liability | 166.2 | 141.9 | 122.9 | |
| Contingent consideration | 6 | 272.3 | 249.7 | 228.7 |
| Other liabilities | 22.6 | 5.2 | 3.6 | |
| Total non-current liabilities | 6 | 505.4 | 432.0 | 410.6 |
| Current liabilities | ||||
| Liabilities to credit institutions | 0.7 | 0.8 | 0.6 | |
| Leasing liabilities | 26.9 | 15.0 | 25.0 | |
| Accounts payable | 36.7 | 72.2 | 33.9 | |
| Current tax liability | 9.9 | 59.0 | 67.9 | |
| Contingent consideration | 6 | 41.0 | 43.5 | 42.3 |
| Other liabilities | 10.1 | 9.5 | 53.5 | |
| Contractual liabilities | 111.9 | 98.0 | 114.5 | |
| Accrued expenses | 198.9 | 251.6 | 223.9 | |
| Total current liabilities | 6 | 436.0 | 549.5 | 561.6 |
| TOTAL EQUITY AND LIABILITIES | 4,815.6 | 5,142.7 | 4,872.8 |
Consolidated report of changes in equity
| EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT COMPANY | |||
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| SEKm | JAN-SEP | JAN-SEP | JAN-DEC |
| Opening balance | 3,900.6 | 3,902.3 | 3,902.3 |
| Changes in equity during the period | |||
| The Net profit of the period | -53.0 | 99.7 | 156.1 |
| Other comprehensive income for the period | 26.5 | 159.3 | -118.0 |
| Dividend | 0.0 | 0.0 | -39.9 |
| Closing balance | 3,874.2 | 4,161.2 | 3,900.6 |
Consolidated Cash Flow Statement
| QUARTER | ACCUMULATED | FULL YEAR | ||||
|---|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC | ||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||
| SEKm | ||||||
| OPERATING ACTIVITIES | ||||||
| Operating profit (EBIT) from continuing operations |
-4.5 | 43.0 | 9.7 | 206.9 | 252.1 | |
| Adjustments for non-cash flow items | 87.3 | 78.2 | 149.8 | 222.6 | 271.4 | |
| Financial items | -1.5 | 1.9 | 9.1 | -9.3 | -16.8 | |
| Taxes paid | 1.0 | -11.3 | -98.2 | -51.7 | -65.0 | |
| Cash flow from operating activities before changes in working capital |
82.3 | 111.8 | 70.4 | 368.5 | 441.6 | |
| Cash flow from changes in working capital | -46.7 | 1.0 | -72.2 | -31.3 | -3.8 | |
| Cash flow from operating activities | 35.6 | 112.8 | -1.8 | 337.2 | 437.8 | |
| INVESTMENT ACTIVITIES | ||||||
| Investment tangible assets | -2.5 | -7.1 | -16.0 | -10.3 | -14.3 | |
| Investment intangible assets | -90.9 | -90.5 | -218.3 | -165.2 | -232.8 | |
| Divestment intangible assets | -0.2 | 0.0 | 61.9 | 0.0 | 0.0 | |
| Investment/disposal of subsidiaries | -25.9 | 14.6 | -37.4 | 7.2 | 15.6 | |
| Cash flow from investment activities | -119.5 | -83.0 | -209.8 | -168.3 | -231.5 | |
| FINANCING ACTIVITIES | ||||||
| Amortizing loans | 0.0 | 0.0 | 0.0 | -100.0 | -100.0 | |
| Dividend | 0.0 | 0.0 | -39.9 | 0.0 | 0.0 | |
| Amortizing lease liability | -7.0 | -7.4 | -19.2 | -20.7 | -26.0 | |
| Cash flow from financing activities | -7.0 | -7.4 | -59.0 | -120.7 | -126.0 | |
| CASH FLOW FOR THE PERIOD | -91.0 | 22.4 | -270.6 | 48.2 | 80.3 | |
| Cash and cash equivalents at start of period |
316.7 | 454.0 | 480.9 | 407.8 | 407.8 | |
| Cash flow for the period | -91.0 | 22.4 | -270.6 | 48.2 | 80.3 | |
| Exchange rate differences | -7.1 | -3.8 | 8.2 | 16.6 | -7.2 | |
| Cash and cash equivalents at end of period | 218.5 | 472.5 | 218.5 | 472.5 | 480.9 | |
| Specification of cash and cash equivalents | ||||||
| Total cash balance | 218.5 | 472.5 | 218.5 | 472.5 | 480.9 | |
| of which are blocked | -2.6 | -2.6 | -2.6 | |||
| Cash at the end of the period | 218.5 | 469.9 | 218.5 | 469.9 | 478.3 |
Parent Company Income Statement
| QUARTER | ACCUMULATED | |||||
|---|---|---|---|---|---|---|
| JUL-SEP 2024 |
JUL-SEP 2023 |
JAN-SEP 2024 |
JAN-SEP 2023 |
JAN-DEC 2023 |
||
| SEKm | ||||||
| Net Revenue | 5.8 | 0.1 | 7.0 | 2.1 | 2.1 | |
| Other Revenue | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| 5.8 | 0.1 | 7.0 | 2.1 | 2.1 | ||
| Own work capitalized | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Operating expenses | ||||||
| Cost of goods and services sold | -0.7 | -15.4 | -1.2 | -35.6 | -31.9 | |
| Other external expenses | -4.0 | 1.2 | -21.1 | -18.8 | -22.8 | |
| Personnel expenses | -5.6 | 5.1 | -22.5 | -17.2 | -14.0 | |
| Other expenses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Operating profit before depreciation and amortization (EBITDA) |
-4.4 | -8.9 | -37.8 | -69.5 | -66.6 | |
| Depreciation and amortization | 0.0 | 3.5 | 0.0 | 0.0 | 0.0 | |
| Operating profit (EBIT) | -4.5 | -5.4 | -37.9 | -69.5 | -66.6 | |
| Financial net | -37.2 | 0.0 | 27.2 | 213.9 | 279.1 | |
| Profit before tax | -41.7 | -5.4 | -10.6 | 144.3 | 212.5 | |
| Appropriations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Tax expense for the period | 0.0 | 1.1 | 0.0 | 14.9 | -7.4 | |
| NET PROFIT | -41.7 | -4.3 | -10.6 | 159.2 | 205.1 |
Parent Company Balance Sheet
| SEKm | 30 SEP 2024 |
30 SEP 2023 |
31 DEC 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible non-current assets | 0.0 | 0.0 | 0.0 |
| Tangible non-current assets | 0.1 | 0.0 | 0.2 |
| Financial non-currents assets | 3,656.4 | 3,666.4 | 3,644.2 |
| Total non-current assets | 3,656.5 | 3,666.4 | 3,644.3 |
| Current assets | |||
| Current receivables | 43.3 | 56.2 | 46.2 |
| Cash and cash equivalents | 38.8 | 39.0 | 102.2 |
| Total current assets | 82.0 | 95.2 | 148.4 |
| TOTAL ASSETS | 3,738.5 | 3,761.7 | 3,792.7 |
| EQUITY AND LIABILITIES | |||
| Equity | 3,684.7 | 3,694.9 | 3,695.3 |
| Non-current liabilities | 0.0 | 0.0 | 0.0 |
| Current liabilities | 53.9 | 66.8 | 97.4 |
| TOTAL EQUITY AND LIABILITIES | 3,738.5 | 3,761.7 | 3,792.7 |
NOTES TO THE INTERIM REPORT
Note 1 – Accounting Principles. Estimates and Assessments
This interim report regards the Swedish parent company Enad Global 7 AB, corporate identity number 556923-2837, and its subsidiaries. EG7 is a group in the gaming industry that develops, markets, publishes, and distributes PC, console and mobile games to the global gaming market. The parent company is a corporation with its registered office in Stockholm, Sweden. The address of the head office is Sveavägen 17, 5 th floor, 111 57 Stockholm.
EG7 applies International Financial Reporting Standards (IFRS) as adopted by the EU. The group's interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable parts of the Annual Accounts Act (1995: 1554).
The parent company applies the Annual Accounts Act and RFR 2 Accounting for Legal Entities. For full accounting principles see annual report 2023.
All amounts in this report are stated in millions of Swedish kronor (SEK millions) unless otherwise stated.
Rounding differences may occur.
Note 2 – Operational Segments
| JUL-SEP 2024 | Daybreak | Big Blue Bubble |
Piranha | Toadman | Fireshine | Petrol | Intra-group items and eliminations |
Total group |
|---|---|---|---|---|---|---|---|---|
| Revenue from external customers | 212.3 | 83.9 | 15.7 | 8.8 | 109.7 | 35.3 | 0.0 | 465.7 |
| Net Revenue | 212.3 | 83.9 | 15.7 | 8.8 | 109.7 | 35.3 | 0.0 | 465.7 |
| Adjusted operating profit before depreciation and amortization (AdjEBITDA) Adjustments* |
52.1 | 42.0 | 2.7 | -2.3 | 15.9 | 0.3 | -9.0 | 101.7 -27.9 |
| Depreciation and amortization | -78.3 | |||||||
| Financial net | -9.0 | |||||||
| Profit before tax Tax expense |
-13.5 -15.7 |
|||||||
| NET PROFIT | -29.2 | |||||||
| Big Blue |
Intra-group items and |
Total | ||||||
| JUL-SEP 2023 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | eliminations | group |
| Revenue from external customers | 181.3 | 123.4 | 27.8 | 14.3 | 119.6 | 50.9 | 0.0 | 517.3 |
| Net Revenue | 181.3 | 123.4 | 27.8 | 14.3 | 119.6 | 50.9 | 0.0 | 517.3 |
| Adjusted operating profit before depreciation and amortization (AdjEBITDA) Adjustments* |
34.3 | 87.9 | 8.4 | -2.4 | 18.9 | 1.9 | -8.3 | 140.7 -26.2 |
| Depreciation and amortization | -71.5 | |||||||
| Financial net | -5.9 | |||||||
| Profit before tax | 37.1 | |||||||
| Tax expense NET PROFIT |
-27.1 10.0 |
|||||||
| Big | Intra-group | |||||||
| JAN-SEP 2024 | Daybreak | Blue Bubble |
Piranha | Toadman | Fireshine | Petrol | items and eliminations |
Total group |
| Revenue from external customers | 567.9 | 228.0 | 59.5 | 37.2 | 193.9 | 113.6 | 0.0 | 1,200.1 |
| Net Revenue | 567.9 | 228.0 | 59.5 | 37.2 | 193.9 | 113.6 | 0.0 | 1,200.1 |
| Adjusted operating profit before depreciation and amortization (AdjEBITDA) |
106.5 | 117.5 | 14.0 | -16.9 | 14.6 | -6.6 | -32.3 | 196.9 |
| Adjustments* Depreciation and amortization |
-12.9 -174.3 |
|||||||
| Financial net | -22.4 | |||||||
| Profit before tax Tax expense |
-12.8 -40.2 |
|||||||
| NET PROFIT | -53.0 | |||||||
| Big Blue |
Intra-group items and |
Total | ||||||
| JAN-SEP 2023 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | eliminations | group |
| Revenue from external customers | 571.6 | 486.2 | 102.8 | 30.6 | 245.2 | 135.6 | 0.0 | 1,571.9 |
| Net Revenue | 571.6 | 486.2 | 102.8 | 30.6 | 245.2 | 135.6 | 0.0 | 1,571.9 |
| Adjusted operating profit before depreciation and amortization (AdjEBITDA) |
133.7 | 306.8 | 37.8 | -28.3 | 24.0 | -0.8 | -29.3 | 443.9 |
| Adjustments* Depreciation and amortization |
-47.4 -189.6 |
|||||||
| Financial net Profit before tax |
-25.1 181.7 |
|||||||
| Tax expense | -82.1 | |||||||
| NET PROFIT | Big | Intra-group | 99.7 | |||||
| Blue | items and | Total | ||||||
| JAN-DEC 2023 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | eliminations | group |
| Revenue from external customers | 753.4 | 571.9 | 133.0 | 49.1 | 352.1 | 185.6 | 0.0 | 2,045.0 |
| Net Revenue | 753.4 | 571.9 | 133.0 | 49.1 | 352.1 | 185.6 | 0.0 | 2,045.0 |
| Adjusted operating profit before depreciation and amortization (AdjEBITDA) |
162.9 | 356.1 | 49.0 | -29.2 | 35.4 | 1.9 | -34.0 | 542.0 |
| Adjustment* Depreciation and amortization |
-46.2 -243.8 |
|||||||
| Financial net | -36.1 | |||||||
| Profit before tax | 216.0 | |||||||
| Tax expense | -59.9 | |||||||
| NET PROFIT | 156.1 | |||||||
| *refer to adjustment bridge page 27 |
Note 3 – Revenue from Customer Contracts
| Big Blue |
Total | ||||||
|---|---|---|---|---|---|---|---|
| JUL-SEP 2024 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | group |
| Geographical region | |||||||
| Sweden | 1.3 | 0.2 | 0.0 | 0.2 | 4.1 | 0.0 | 5.8 |
| Other Europe | 30.3 | 14.1 | 2.7 | 0.1 | 36.2 | 0.4 | 83.9 |
| Canada | 9.4 | 3.0 | 5.4 | 0.0 | 4.1 | 0.1 | 22.0 |
| USA | 159.9 | 57.4 | 9.9 | 8.6 | 50.0 | 31.0 | 316.7 |
| Other markets | 11.4 | 9.2 | -2.3 | 0.0 | 15.2 | 3.8 | 37.3 |
| Revenue from customer contracts | 212.3 | 83.9 | 15.7 | 8.8 | 109.7 | 35.3 | 465.7 |
| Big Blue |
Total | ||||||
| JUL-SEP 2023 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | group |
| Geographical region | |||||||
| Sweden | 1.0 | 0.4 | 0.1 | 0.8 | 3.9 | 0.0 | 6.2 |
| Other Europe | 25.9 | 18.4 | 4.8 | 3.5 | 61.1 | 4.2 | 117.8 |
| Canada | 8.4 | 4.8 | 2.0 | 0.0 | -0.7 | 1.3 | 15.9 |
| USA | 136.0 | 88.4 | 17.1 | 10.0 | 41.2 | 40.7 | 333.3 |
| Other markets | 10.0 | 11.4 | 3.8 | 0.0 | 14.1 | 4.7 | 44.0 |
| Revenue from customer contracts | 181.3 | 123.4 | 27.8 | 14.2 | 119.6 | 50.9 | 517.3 |
| Big Blue |
Total | ||||||
| JAN-SEP 2024 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | group |
| Geographical region | |||||||
| Sweden | 3.4 | 0.6 | 0.1 | 8.4 | 11.8 | 0.0 | 24.4 |
| Other Europe | 80.1 | 36.8 | 8.7 | 0.2 | 76.5 | 3.0 | 205.3 |
| Canada | 25.2 | 7.9 | 5.5 | 0.0 | 5.7 | 0.2 | 44.5 |
| USA | 429.6 | 158.8 | 37.7 | 28.0 | 69.9 | 101.7 | 825.7 |
| Other markets | 29.5 | 24.0 | 7.5 | 0.6 | 30.0 | 8.7 | 100.2 |
| Revenue from customer contracts | 567.9 | 228.0 | 59.5 | 37.2 | 193.9 | 113.6 | 1,200.1 |
| Big | |||||||
| Blue | Total | ||||||
| JAN-SEP 2023 | Daybreak | Bubble | Piranha | Toadman | Fireshine | Petrol | group |
| Geographical region | |||||||
| Sweden | 3.2 | 2.1 | 0.3 | 1.5 | 9.0 | 0.0 | 16.1 |
| Other Europe | 81.6 | 75.6 | 10.9 | 4.6 | 108.7 | 10.0 | 291.4 |
| Canada | 26.2 | 18.6 | 8.7 | 0.0 | 1.0 | 3.3 | 57.7 |
| USA | 431.2 | 342.9 | 73.5 | 24.3 | 97.5 | 99.2 | 1,068.7 |
| Other markets | 29.4 | 47.1 | 9.4 | 0.0 | 29.1 | 23.1 | 137.9 |
| Revenue from customer contracts | 571.6 | 486.2 | 102.8 | 30.5 | 245.2 | 135.6 | 1,571.9 |
| Big | |||||||
| JAN-DEC 2023 | Daybreak | Blue Bubble |
Piranha | Toadman | Fireshine | Petrol | Total group |
| Geographical region | |||||||
| Sweden | 5.5 | 2.3 | 0.5 | 5.1 | 18.0 | 0.0 | 31.3 |
| Other Europe | 159.2 | 88.8 | 16.6 | 7.6 | 149.5 | 18.1 | 439.7 |
| Canada | 36.4 | 21.6 | 10.8 | 0.0 | 1.3 | 3.4 | 73.5 |
| USA | 515.2 | 403.1 | 91.2 | 36.4 | 142.7 | 133.4 | 1,322.0 |
| Other markets | 37.1 | 56.2 | 13.9 | 0.0 | 40.6 | 30.7 | 178,5 |
| Revenue from customer contracts | 753.4 | 571.9 | 133.0 | 49.1 | 352.1 | 185.6 | 2,045.0 |
Note 4 – Financial Net
| SEKm | JUL-SEP 2024 |
JUL-SEP 2023 |
JAN-SEP 2024 |
JAN-SEP 2023 |
JAN-DEC 2023 |
|---|---|---|---|---|---|
| Net interest | 1.4 | 2.1 | 7.2 | 2.6 | 7.1 |
| Discount interest on earnout | -8.0 | -6.6 | -25.1 | -19.2 | -27.7 |
| Interest leasing | -0.6 | -0.2 | -2.2 | -0.9 | -1.6 |
| Release negative goodwill Serbian | |||||
| acquisition | 0.0 | 0.0 | 0.0 | 1.1 | 1.1 |
| Financing fees | -0.6 | -1.0 | -1.4 | -3.6 | -3.9 |
| FX effects | -1.2 | -0.3 | -0.9 | -5.1 | -11.1 |
| Financial net | -9.0 | -5.9 | -22.4 | -25.1 | -36.1 |
The financial net in Q3 amounted to SEK -9.0 million compared to SEK -5.9 million for the same period last year. The positive effect on net interest is due to overnight deposits.
Note 5 – Capitalized development costs and gaming rights
| 2024 | JUL-SEP | JUL-SEP 2023 |
|||
|---|---|---|---|---|---|
| SEKm | Capitalized development costs |
Gaming rights | Capitalized development costs |
Gaming rights | |
| Opening balance Capitalized development cost/this year's gross |
141.3 | 242.2 | 88.7 | 69.7 | |
| investment | 44.2 | 45.3 | 18.9 | 67.3 | |
| Amortization of product development | -3.6 | -6.6 | -6.1 | -12.9 | |
| Write-down of capitalized development costs | -15.2 | 0.0 | -9.8 | 0.0 | |
| FX | -6.3 | -9.1 | -1.0 | -1.1 | |
| Closing balance | 160.3 | 271.8 | 90.7 | 123.0 |
| JAN-SEP 2024 |
JAN-SEP 2023 |
||||
|---|---|---|---|---|---|
| SEKm | Capitalized development costs |
Gaming rights | Capitalized development costs |
Gaming rights | |
| Opening balance Capitalized development cost/this year's gross |
102.0 | 156.9 | 70.3 | 0.0 | |
| investment | 86.4 | 131.4 | 63.8 | 133.7 | |
| Amortization of product development | -9.4 | -16.6 | -26.6 | 0.0 | |
| Write-down of capitalized development costs | -15.2 | 0.0 | -20.3 | -12.9 | |
| FX | -3.5 | 0.1 | 3.4 | 2.2 | |
| Closing balance | 160.3 | 271.8 | 90.6 | 123.0 |
| JAN-DEC | |||
|---|---|---|---|
| 2023 | |||
| Capitalized | |||
| SEKm | development costs |
Gaming rights | |
| Opening balance | 70.3 | 0.0 | |
| Capitalized development cost/this year's gross | |||
| investment | 85.6 | 179.3 | |
| Amortization of product development | -31.1 | -14.4 | |
| Write-down of capitalized development costs | -20.3 | 0.0 | |
| FX | -2.6 | -8.0 | |
| Closing balance | 102.0 | 156.9 |
Note 6 – Financial Instruments
Valuation of financial assets and liabilities per Sep 30 2024
| Financial assets | Financial assets | |
|---|---|---|
| valued at fair value | valued at | |
| Financial assets | through profit or loss | amortized cost |
| Accounts receivable | 0.0 | 90.5 |
| Cash and cash equivalents | 0.0 | 218.5 |
| Total | 0.0 | 308.9 |
| Financial liabilities | Financial liabilities | |
| valued at fair value | valued at | |
| Financial liabilities | through profit or loss | amortized cost |
| Contingent consideration | 313.3 | 0.0 |
| Liabilities to credit institutions | 0.0 | 2.9 |
| Accounts payable | 0.0 | 36.7 |
| Deferred revenue | 0.0 | 112.4 |
| Other financial liabilities | 0.0 | 109.4 |
| Total | 313.3 | 261.4 |
| Valuation of financial assets and liabilities per Sep 30 2023 | ||
| Financial assets | Financial assets | |
| valued at fair value | valued at | |
| Financial assets | through profit or loss | amortized cost |
| Accounts receivable | 0.0 | 204.2 |
| Cash and cash equivalents | 0.0 | 472.5 |
| Total | 0.0 | 676.8 |
| Financial liabilities | Financial liabilities | |
| valued at fair value | valued at | |
| Financial liabilities | through profit or loss | amortized cost |
| Contingent consideration | 293.2 | 0.0 |
| Liabilities to credit institutions | 0.0 | 3.8 |
| Accounts payable | 0.0 | 72.2 |
| Deferred revenue | 0.0 | 100.6 |
| Other financial liabilities | 0.0 | 144.9 |
| Total | 293.2 | 321.5 |
| Valuation of financial assets and liabilities per Dec 31 2023 | ||
| Financial assets | Financial assets | |
| valued at fair value | valued at | |
| Financial assets Accounts receivable |
through profit or loss | amortized cost |
| Cash and cash equivalents | 0.0 | 155.6 |
| Total | 0.0 0.0 |
480.9 635.5 |
| Financial liabilities | Financial liabilities | |
| valued at fair value | valued at | |
| Financial liabilities Contingent consideration |
through profit or loss | amortized cost |
| Liabilities to credit institutions | 271.0 0.0 |
0.0 3.5 |
| Accounts payable | 0.0 | 33.9 |
| Deferred revenue | 0.0 | 116.4 |
| Other financial liabilities | 0.0 | 125.7 |
| Total | 271.0 | 279.5 |
Valuation Hierarchy
The levels in the valuation hierarchy are defined as follows:
- Level 1 Listed prices (unadjusted) in active markets for identical assets and liabilities.
- Level 2 Observable input data for the asset or liability other than quoted prices included in level 1. either directly (i.e., price quotations) or indirectly (i.e., derived from price quotations).
- Level 3 Input data for the asset or liability that is not based on observable market data (i.e., nonobservable input data).
No items are valued at level 1 or 2.
Contingent consideration
The contingent consideration is reported at fair value according to level 3 in the valuation hierarchy. The fair value is calculated using a valuation model that discounts the present value of expected payments of cash flows with a risk-adjusted discount rate. Expected cash flows are determined based on probable scenarios based on expected financial outcomes and future financial forecasts. The most significant input factor used in the valuation at fair value is a risk-adjusted discount factor of 13.5 (13.9) percent.
| Contingent consideration | JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | |
| At beginning of period | 286.2 | 256.6 | 271.0 | 253.1 | 253.1 |
| Acquisition during the period | 33.0 | 0.0 | 33.0 | 0.0 | 0.0 |
| Payments | 0.0 | -17.0 | -18.5 | -17.0 | -21.2 |
| Discount effect | 8.0 | 6.6 | 25.1 | 19.2 | 27.7 |
| Change in value reported in the result | 0.0 | 31.8 | 5.7 | 31.8 | 20.9 |
| FX effect | -14.0 | 15.2 | -3.0 | 6.0 | -9.5 |
| At end of period | 313.3 | 293.2 | 313.3 | 293.2 | 271.0 |
The end-of-period contingent consideration of SEK 313.3 million is split between Daybreak, Singularity 6 and Piranha, amounting to SEK 147.7 million for Daybreak, SEK 31.4 million for Singularity 6 and SEK 134.2 million for Piranha. There is an according to applicable accounting rules not recognized value for EG7s shareholders as of today amounting to SEK 123.1 million, that should be identified in relation to the recognized earnout to the sellers of Daybreak, the net remaining earnout to the sellers of Daybreak after such a theoretical recognition is SEK 24.6 million. For further details see note 7.
Current receivables and liabilities
For current receivables and liabilities, such as accounts receivable and accounts payable, the reported value is considered to be a good approximation of the fair value.
Note 7 – Related Party Transactions
| SEKm | JUL-SEP 2024 |
JUL-SEP 2023 |
JAN-SEP 2024 |
JAN-SEP 2023 |
JAN-DEC 2023 |
|
|---|---|---|---|---|---|---|
| Related party | Related party transaction - recognized revenue |
|||||
| Cold Iron LLC 1) |
Toadman's WFH contract regarding Game developing for the client Cold Iron |
8.5 | 9.9 | 27.9 | 24.3 | 36.2 |
| Related party | Outstanding liabilities | |||||
| Jason Epstein | Contingent consideration related to tax saving benefits 2) |
106.1 | 119.7 | 106.1 | 119.7 | 106.2 |
| Ji Ham | Contingent consideration related to tax saving benefits 2) |
14.2 | 16.0 | 14.2 | 16.0 | 14.2 |
| Total | 120.3 | 135.7 | 120.3 | 135.7 | 120.4 | |
| Related party | Outstanding receivables | |||||
| Cold Iron LLC 1) |
Receivables from Toadman's WFH contract regarding Game developing for the client Cold |
|||||
| Iron | 12.0 | 8.9 | 12.0 | 8.9 | 11.1 | |
| Cold Iron LLC 1) |
Daybreak invests in gaming rights, and publish upcoming game from Cold Iron |
191.1 | 81.5 | 191.1 | 81.5 | 116.0 |
| Total | 203.0 | 90.5 | 203.0 | 90.5 | 127.1 |
- 1) Cold Iron Studios LLC is owned by Jason Epstein, Chairman of the Board, and Ji Ham, CEO.
- 2) The total estimated remaining amount to the sellers of Daybreak by end of September 2024 amounted to SEK 147.7 million, of which SEK 106.1 million refers to Jason Epstein and SEK 14.2 million to Ji Ham. It refers to acquisition related tax saving benefits from the Daybreak acquisition where the SPA stated that the seller, including Jason Epstein and Ji Ham, and the buyer receive half each from the accumulated tax savings deriving from the acquisition. This amount will be fully settled in 2036 which also means that the tax payments in Daybreak will increase at that point.
The outstanding liability for contingent consideration reflected in the above chart relating to tax saving benefit is a bit misleading in the way that it only reflects a liability and not the corresponding larger tax saving asset that according to IFRS shall not be reflected in the accounting. However, that asset was originally USD 57 million to be netted from any future tax payments over 15 years ending December 31st 2036. As of today, that asset amounts to USD 46.4 million or SEK 468.5 million and half of that potential value belongs, over the full period when and if it occurs, according to the original share purchase agreement to the sellers of Daybreak including the related parties listed above. This means that the hidden value f
or EG7s shareholders as of today at net present value is SEK 123.1 million. Corresponding to half of the asset from the tax savings, after deducting the above mentioned liability to the seller of Daybreak, including the related parties.
For further details on related party transactions, please see the Annual report 2023.
<-- PDF CHUNK SEPARATOR -->
Note 8 – Business Acquisition
On July 2, 2024 EG7 acquired Singularity 6 (S6), the acquiring entity was Daybreak Game Company LLC and S6 will be a part of the Daybreak segment going forward.
Based in Los Angeles, S6 is the developer and publisher behind Palia, an online multiplayer community/life simulation game currently available in open beta on PC and Nintendo Switch. S6 has 45 employees today and had revenues of SEK 36.5 million in 2023 and total revenues in 2024 per end of September of SEK 62,1 million. Palia has contributed with revenues of SEK 27.5 million to the Group since the acquisition. Subject to the game performance and the level of capitalized costs for latest generation development efforts, management expect S6 to operate at breakeven or slightly positive EBITDA level for the remainder of the year and to turn cashflow positive during 2025. The game has seen continuing improvement to its performance during the open beta. The current revenue and profitability levels are reflective of its open beta status with expect increased revenue and profitability upon its full commercial release in 2025. With an additional investment of up to SEK 100 million from EG7, the plan is to complete the development of the release version for the latest generation consoles and commercially release the title out of open beta in 2025.
The initial purchase price amounted to SEK 53.1 million, with a working capital adjustment of -SEK 12.4 million, resulting in a cash consideration of SEK 40.6 million. In addition to the initial purchase price there is a performance based contingent consideration over the first five years post-closing. For the earnout, the sellers will be entitled to 50 percent of S6's net cash flows over the five year period after EG7 first recoups 100 percent of its investment in S6, including the initial cash consideration. Included in the deal, S6's team is entitled to a performance-based incentive, based on Palia's performance over the five-year-term.
At the time of acquisition the reported value for the contingent consideration amounted to SEK 33.1 million.
| SEKm | Fair value |
|---|---|
| Acquired net assets at the time of acquisition based on preliminary acquisition | |
| analysis | |
| Intangible assets | 103.0 |
| Tangible non-current assets | 7.5 |
| Deferred tax assets | 2.8 |
| Accounts receivable and other receivables | 13.5 |
| Cash and cash equivalents | 13.5 |
| Interest-bearing liabilities | -1.6 |
| Deferred tax liability | -20.3 |
| Accounts payable and other operating liabilities | -61.5 |
| Identified net assets | 56.9 |
| Goodwill | 16.8 |
| Total Purchase Price | 73.7 |
| Cash payment | 40.6 |
| Contingent consideration | 33.1 |
| Total purchase price | 73.7 |
In connection with the acquisition of Singularity 6, a preliminary goodwill of SEK 16.8 million arose in the form of a difference between the transferred consideration and the fair value of the acquired net assets. Goodwill mainly refers to synergies and expertise in the acquired company. Goodwill is not expected to be tax deductible.
SEKm
| The acquisitions preliminary impact on the group's cash flow | |
|---|---|
| Cash consideration | 40.6 |
| Deducted: | |
| Cash and cash equivalents (acquired) | 13.5 |
| Net cash outflow | 27.1 |
| Note 9 – Significant Events After the Balance Date No significant events after the balance date. |
|||||||
|---|---|---|---|---|---|---|---|
DEFINITIONS
ALTERNATIVE PERFORMANCE MEASURES
Guidelines regarding alternative performance measures for companies with securities listed on a regulated market within the EU have been issued by ESMA (The European Securities and Markets Authority). The interim report refers to a number of undefined measures in accordance with IFRS that are used to help both investors and management to analyze the company's operations. Because not all companies calculate financial measures in the same way, these are not always comparable with measures used by other companies. These financial measures should therefore not be regarded as compensation for measures defined in accordance with IFRS. Below we describe the various measures not defined in accordance with IFRS that have been used as a complement to the financial information reported in accordance with IFRS and how these measures are used. For reconciliation of alternative key ratios, see Adjustment bridge page 28.
The reason why we use the alternative KPIs listed under Definitions is because they visualize operational performance in such a way that a reasonable investor potentially would consider some or all of them in a decision to trade shares in Enad Global 7 AB.
Average number of employees: The average number of employees during the period.
Cash conversion: Operational cashflow divided by proforma EBITDA over the last twelve months.
EBITDA: Earnings before interest, tax, depreciation and amortization of tangible and intangible non-current assets.
Adjusted EBITDA: EBITDA adjusted for items considered to be non-recurring and one-time in nature for comparability between periods. Referring to Adjustment bridge for a detailed view of nonrecurring items.
EBITDA margin (%): EBITDA as a percentage of Net Revenue.
EBITA: Operating profit before depreciation of intangible assets.
EBITA margin (%): EBITA as a percentage of Net Revenue.
Adjusted EBIT: EBIT adjusted for items considered to be non-recurring and one-time in nature for comparability between periods. Referring to Adjustment bridge for a detailed view of non-recurring items.
EBIT margin (%): Operating profit as a percentage of Net Revenue.
Adjusted Net profit: Profit after tax for the period adjusted for items considered to be nonrecurring and one-time in nature for comparability between periods. Referring to Adjustment bridge for a detailed view of non-recurring items
Adjusted Earnings per share: Adjusted net profit for the period divided by the total number of shares outstanding.
Equity ratio: Equity as a percentage of total assets.
Net cash: Interest-bearing assets and cash and cash equivalents less interest-bearing liabilities.
Net debt: Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.
Net Revenue growth: Increase in Net Revenue from the same period the previous year as a percentage.
Organic growth: Net Revenue increase from comparable period last year divided by the Net Revenue for the comparable period last year. Including all newly acquired businesses contributing with Revenue last year but excluding newly acquired businesses contributing with Revenues this year.
Organic growth in local currency: Organic growth excluding the translation impact of changed currency exchange rates. The current period is recalculated with the average exchange rate for the comparison period.
Total Leverage: Cash debt (including remaining purchase consideration in cash and for the avoidance of doubt excluding any remaining purchase considerations to be settled in company shares) divided by proforma EBITDA.
OTHER DEFINITIONS
Earnings per share: Net profit for the period divided by the total number of shares outstanding.
Operating profit (EBIT): Earnings before financial items and tax.
Net profit: Profit after tax for the period.
Net Revenue: Revenue from sales, less discounts and after elimination of any related party transactions.
Number of shares: Total number of shares outstanding.
ALTERNATIVE PERFORMANCE MEASURES
Adjustment bridge
| QUARTER | ACCUMULATED | FULL YEAR | |||
|---|---|---|---|---|---|
| JUL-SEP | JUL-SEP | JAN-SEP | JAN-SEP | JAN-DEC | |
| SEKm | 2024 | 2023 | 2024 | 2023 | 2023 |
| EBITDA | 73.8 | 114.5 | 184.0 | 396.4 | 495.9 |
| Revaluation of deferred purchase consideration* | 0.0 | 31.8 | 5.7 | 31.8 | 20.9 |
| Restructuring costs** | 17.4 | -6.3 | 22.7 | 14.0 | 12.3 |
| M&A costs | 10.5 | 0.7 | 21.7 | 1.6 | 7.0 |
| IP sale | 0.0 | 0.0 | -37.2 | 0.0 | 0.0 |
| Non-recurring margin adjustment | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 |
| Adjusted EBITDA | 101.7 | 140.7 | 196.9 | 443.9 | 542.0 |
| EBIT | -4.5 | 43.0 | 9.7 | 206.9 | 252.1 |
| Revaluation of deferred purchase consideration* | 0.0 | 31.8 | 5.7 | 31.8 | 20.9 |
| Restructuring costs** | 17.4 | -6.3 | 22.7 | 14.0 | 12.3 |
| M&A costs | 10.5 | 0.7 | 21.7 | 1.6 | 7.0 |
| IP sale | 0.0 | 0.0 | -37.2 | 0.0 | 0.0 |
| Non-recurring margin adjustment | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 |
| Write-down games*** | 15.2 | 9.8 | 15.2 | 20.3 | 20.3 |
| Write-down closing of entities | 5.6 | -0.6 | 5.6 | 2.9 | 2.9 |
| Adjusted EBIT | 44.3 | 78.4 | 43.4 | 277.5 | 321.4 |
| Net profit | -29.2 | 10.0 | -53.0 | 99.7 | 156.1 |
| Revaluation of deferred purchase consideration* | 0.0 | 31.8 | 5.7 | 31.8 | 20.9 |
| Restructuring costs** | 17.4 | -6.3 | 22.7 | 14.0 | 12.3 |
| M&A costs | 10.5 | 0.7 | 21.7 | 1.6 | 7.0 |
| IP sale | 0.0 | 0.0 | -37.2 | 0.0 | 0.0 |
| Non-recurring margin adjustment | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 |
| Write-down games*** | 15.2 | 9.8 | 15.2 | 20.3 | 20.3 |
| Write-down closing of entities | 5.6 | -0.6 | 5.6 | 2.9 | 2.9 |
| Tax effect adjustments | -10.1 | -7.3 | -7.0 | -14.5 | -14.3 |
| Adjusted net profit | 9.5 | 38.1 | -26.2 | 155.7 | 211.1 |
| Earnings per share before and after dilution | -0.33 | 0.11 | -0.60 | 1.12 | 1.76 |
| Adjusted earnings per share | 0.11 | 0.43 | -0.30 | 1.76 | 2.38 |
*Q1 2024 adjustment of contingent liability Daybreak of SEK 5.7 million. Q3 2023 adjustment of contingent liability Piranha of SEK 31.8 million. Q4 2023 adjustment of contingent liability Daybreak of SEK -11.0 million.
**Q2 and Q3 2024 restructuring costs in Toadman and Petrol. Q2 2023 restructuring costs in AntiMatter Games
*** 03 2024 write down remaining games in Toadman. Q3 2023 write down of Power Chord in Big Blue Bubble amounted to SEK 9.8 million. Q2 2023 write down of Minimal Affect in Toadman amounted to SEK 10.5 million.
Organic growth bridge
| QUARTER | ACCUMU | ILATED | FULL YEAR | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | JUL-SEP 2024 |
JUL-SEP 2023 |
% Δ | JAN-SEP 2024 |
JAN-SEP 2023 |
% Δ | JAN-DEC 2023 |
|
| Net Revenue | 465.7 | 517.3 | -10.0% | 1,200.1 | 1,571.9 | -23.7% | 2,045.0 | |
| Singularity 6 acquisition | -27.5 | -27.5 | ||||||
| Organic Revenue | 438.2 | 517.3 | -15.3% | 1,172.6 | 1,571.9 | -25.4% | 2,045.0 | |
| FX effect | 13.0 | 8.2 | -71.0 | |||||
| Organic Revenue FX adjusted | 451.2 | 517.3 | -12.8% | 1,180.8 | 1,571.9 | -24.9% | 1,974.0 |
Financing
| 30 | SEP | |
|---|---|---|
| SEKm | 2024 | 2023 |
| Total debt | -2.9 | -3.8 |
| Cash and cash equivalents | 218.5 | 472.5 |
| Net cash | 215.5 | 468.7 |
The net cash by the end of the quarter amounted to SEK 215.5 million consisting of a cash balance of SEK 218.5 million and a financial debt of SEK 2.9 million.
Segment performance data
| NET REVENUE Daybreak 212.3 167.1 188.5 181.8 181.3 189.6 200.6 198.9 Big Blue Bubble 83.9 75.4 68.7 85.8 123.4 144.4 218.3 192.7 Piranha 15.7 22.7 21.0 30.2 27.8 24.5 50.5 25.3 Toadman 8.8 11.6 16.8 18.5 14.3 10.8 5.5 5.7 Petrol 35.3 37.9 40.5 50.0 50.9 35.6 49.1 59.0 Fireshine Games 109.7 38.0 46.2 106.9 119.6 78.0 47.6 77.4 GROUP TOTAL 465.7 352.7 381.7 473.1 517.3 482.9 571.7 559.0 NET REVENUE GROWTH YoY (%) Daybreak 17% -12% -6% -9% -16% -7% -5% 15% Big Blue Bubble -32% -48% -69% -56% 157% 234% 734% 607% Piranha -43% -7% -58% 19% 11% 7% 212% -15% Toadman -38% 7% 205% 227% 162% 1108% 381% 311% Petrol -31% 6% -17% -15% -23% -29% -9% -8% Fireshine Games -8% -51% -3% 38% 43% -45% -47% -62% GROUP TOTAL -10% -27% -33% -15% 16% 4% 43% 12% NET REVENUE ORGANIC YoY (%) Daybreak 2% -12% -6% -9% -16% -7% -7% 5% Big Blue Bubble -32% -48% -69% -56% 157% 234% 734% 607% Piranha -43% -7% -58% 19% 11% 7% 212% -15% Toadman -38% 7% 205% 227% 162% 1108% 381% 311% Petrol -31% 6% -17% -15% -23% -29% -9% -8% Fireshine Games -8% -51% -3% 38% 43% -45% -47% -62% GROUP TOTAL -15% -27% -33% -15% 16% 4% 41% 8% ORGANIC FX ADJUSTED GROWTH YoY (%) Daybreak 6% -13% -6% -8% -17% -13% -17% -13% Big Blue Bubble -29% -48% -69% -54% 162% 237% 687% 529% Piranha -39% -7% -58% 20% 12% 10% 195% -25% Toadman -38% 7% 205% 227% 162% 1107% 381% 313% Petrol -28% 5% -17% -15% -25% -33% -18% -23% Fireshine Games -9% -52% -7% 31% 32% -48% -48% -64% GROUP TOTAL -13% -28% -33% -16% 14% 1% 31% -5% ADJ EBITDA Daybreak 52.1 12.3 42.1 29.1 34.3 47.8 51.6 41.7 Big Blue Bubble 42.0 37.3 38.2 49.3 87.9 85.8 133.1 116.5 Piranha 2.7 7.9 3.4 11.2 8.4 6.0 23.4 15.1 Toadman & AMG -2.3 -8.5 -6.1 -4.7 -2.4 -12.2 -13.7 -5.1 Petrol 0.3 -0.5 -6.4 2.7 1.9 -8.8 6.0 3.4 Fireshine Games 15.9 -1.8 0.5 11.4 18.9 3.3 1.7 10.2 Holding -9.2 -13.2 -10.0 -0.9 -8.3 -8.6 -12.4 -2.9 GROUP TOTAL 101.5 33.4 61.7 98.2 140.7 113.3 189.8 178.8 ADJ EBITDA MARGIN (%) Daybreak 25% 7% 22% 16% 19% 25% 26% 21% Big Blue Bubble 50% 49% 56% 57% 71% 59% 61% 60% Piranha 17% 35% 16% 37% 30% 25% 46% 60% Toadman & AMG -26% -73% -36% -25% -17% -113% -248% -91% Petrol 1% -1% 5% 5% 4% -25% 12% 6% Fireshine Games 15% -5% 1% 11% 16% 4% 4% 13% GROUP TOTAL 22% 9% 16% 21% 27% 23% 33% 32% ADJ EBIT Daybreak 9.8 -23.3 8.4 -7.3 -2.6 12.1 16.5 4.1 Big Blue Bubble 39.9 35.2 36.3 46.2 81.6 76.3 127.3 111.8 Piranha 1.2 6.4 2.3 8.3 6.0 2.1 17.8 10.4 Toadman & AMG -3.9 -9.9 -7.6 -6.2 -1.0 -13.2 -14.5 -1.4 Petrol -1.6 -2.5 -8.4 0.6 -0.2 -10.5 4.1 1.1 Fireshine Games 8.2 -8.4 -5.6 4.3 4.1 2.9 1.3 9.9 Holding -9.6 -13.6 -10.4 -1.8 -9.4 -9.7 -13.5 -5.7 GROUP TOTAL 44.1 -16.1 15.2 43.9 78.4 60.0 139.0 130.3 ADJ EBIT MARGIN (%) Daybreak 5% -14% 4% -4% -1% 6% 8% 2% Big Blue Bubble 48% 47% 53% 54% 66% 53% 58% 58% Piranha 8% 28% 11% 27% 21% 9% 35% 41% Toadman & AMG -44% -85% -45% -34% -7% -123% -264% -24% Petrol -5% -7% -21% 1% 0% -30% 8% 2% |
SEKm | 2024 Q3 |
2024 Q2 |
2024 Q1 |
2023 Q4 |
2023 Q3 |
2023 Q2 |
2023 Q1 |
2022 Q4 |
2023 Full year |
|---|---|---|---|---|---|---|---|---|---|---|
| 753.4 | ||||||||||
| 571.9 | ||||||||||
| 133.0 | ||||||||||
| 49.1 185.6 |
||||||||||
| 352.1 | ||||||||||
| 2,045.0 | ||||||||||
| -9% | ||||||||||
| 84% 49% |
||||||||||
| 273% | ||||||||||
| -19% | ||||||||||
| -11% | ||||||||||
| 10% | ||||||||||
| 1%* | ||||||||||
| 84% | ||||||||||
| 49% | ||||||||||
| 273% | ||||||||||
| -19% -11% |
||||||||||
| 15%* | ||||||||||
| -14%* | ||||||||||
| 82% 47% |
||||||||||
| 273% | ||||||||||
| -23% | ||||||||||
| -16% | ||||||||||
| 6%* | ||||||||||
| 162.9 | ||||||||||
| 356.1 | ||||||||||
| 49.0 | ||||||||||
| -33.0 | ||||||||||
| 1.9 35.4 |
||||||||||
| -30.2 | ||||||||||
| 542.0 | ||||||||||
| 22% 62% |
||||||||||
| 37% | ||||||||||
| -67% | ||||||||||
| 1% | ||||||||||
| 10% 27% |
||||||||||
| 18.7 | ||||||||||
| 331.4 | ||||||||||
| 34.2 | ||||||||||
| -35.0 | ||||||||||
| -6.1 12.6 |
||||||||||
| -34.5 | ||||||||||
| 321.4 | ||||||||||
| 2% | ||||||||||
| 58% | ||||||||||
| 26% -71% |
||||||||||
| -3% | ||||||||||
| Fireshine Games | 7% | -22% | -12% | 4% | 3% | 4% | 3% | 13% | 4% | |
| GROUP TOTAL 9% 5% 4% 9% 15% 12% 24% 23% |
16% | |||||||||
| Employees on the last day of the period | ||||||||||
| Daybreak 300 263 262 264 264 261 260 258 Big Blue Bubble 75 79 76 73 71 74 70 69 |
264 73 |
|||||||||
| Piranha 106 111 109 111 101 94 81 72 |
111 | |||||||||
| Toadman 64 111 121 119 119 114 56 57 |
119 | |||||||||
| AMG 0 0 0 0 0 38 42 50 |
0 | |||||||||
| Petrol 67 69 78 75 79 79 84 84 Fireshine Games 38 39 34 31 30 30 31 30 |
75 31 |
|||||||||
| Holding 8 9 8 8 8 9 9 9 |
8 | |||||||||
| GROUP TOTAL 657 680 688 681 672 699 633 629 |
681 |
*Proforma
FOR MORE INFORMATION, PLEASE CONTACT:
Fredrik Rüdén. Group Deputy CEO and CFO Mail: [email protected]
Phone: +46 733 117 262
Ludvig Andersson. Head of IR & Sustainability Mail: [email protected]
Phone: +46 730 587 608
EG7 IN SHORT
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs approximately 500 game developers and develops its own original IPs, as well as acts as consultant to other publishers around the world through its game development divisions Daybreak Games, Piranha Games, Toadman Studios and Big Blue Bubble. In addition, the Group's marketing department Petrol has contributed to the release of 2,000+ titles, of which many are leading global brands such as Call of Duty, Destiny and Elden Ring. The Group's publishing and distribution department Fireshine Games hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with
approximately 660 employees in 15 offices worldwide.
Nasdaq Stockholm, Ticker Symbol: EG7
AUDITING
This report has been subject to limited review by the company's auditor.
NEXT REPORT
The next financial report will be published:
Interim report Q4 2024: February 11, 2025 Annual Report 2024: April 24, 2025 Interim report Q1 2025: May 15, 2025 Interim report Q2 2025: August 15, 2025 Interim report Q3 2025: November 11, 2025 Interim report Q4 2025: February 17, 2026
IMPORTANT INFORMATION
This information is information that Enad Global 7 AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out below at 7:00am CET on November 12, 2024.
THE BOARD'S DECLARATION
The Board of Directors and CEO ensure that this interim report gives a true and fair view of the company's operations and financial position.
Stockholm November 12, 2024
| Ji Ham |
Jason Epstein |
Ben Braun |
Ebba Ljungerud |
Gunnar Lind |
Marie Louise Gefwert |
Ron Moravek |
|
|---|---|---|---|---|---|---|---|
| Chief Executive | Chairman | Member | Member | Member | Member | Member | |
| Officer/Member | of the | of the | of the | of the | of the | of the | |
| of the Board | board | board | board | board | board | board |