Enad Global 7 (EG7) Q1 2025 earnings summary

Executive summary

• Q1 net revenue reached SEK 455.3 million, up 19.3% year-over-year, with adjusted EBITDA of SEK 73.7 million (16.2% margin), both showing strong growth and margin stability.

• Fireshine led with 213.6% net revenue growth to SEK 144.9 million, driven by strong physical releases and back catalog performance.

• SEK 350 million in unsecured bonds were issued, improving liquidity and supporting future M&A and investments.

• Cost optimization across Toadman, Petrol, and Piranha is expected to yield SEK 87.7–88 million in annual savings.

• Palia launched on PlayStation 5 and Xbox Series X/S, expanding reach and expected to drive long-term live service growth.

Financial highlights

• Net revenue for the last 12 months reached SEK 1,787 million, the highest since Q1 2024.

• 70% of Q1 net revenue came from live service and back catalog titles, providing predictable cash flows.

• Daybreak contributed SEK 189.7 million in net revenue and SEK 30 million adjusted EBITDA (15.8% margin); Big Blue Bubble generated SEK 66 million in net revenue and SEK 32.9 million adjusted EBITDA (49.8% margin).

• Fireshine delivered SEK 144.9 million in net revenue and SEK 21.7 million adjusted EBITDA (15% margin).

• Cash flow from operations was SEK 17.9 million, impacted by negative working capital movements, a normal seasonal pattern.

Outlook and guidance

• Palia and Cold Iron's new title are expected to drive revenue and profitability in coming quarters, with a robust content roadmap planned.

• Full financial benefit from Toadman wind-down cost savings will be realized from H2 2025.

• Investment in new growth initiatives peaked in 2024 and is expected to halve in 2025.

• M&A opportunities are actively being pursued, leveraging improved liquidity.