Enad Global 7 (EG7) Q2 2024 earnings summary

Executive summary

• Q2 2024 was a quiet quarter with net revenue of SEK 352.7–353 million and adjusted EBITDA of SEK 33–33.4 million, reflecting no major releases and normalization of My Singing Monsters.

• Major product launches are scheduled for Q3 and Q4, expected to drive stronger results and a significant revenue pickup.

• Strategic acquisition of Singularity 6 (S6) and its game Palia, with a favorable risk-reward structure and plans for a full commercial release in 2025.

• Ongoing cost-saving and business optimization initiatives, with annual savings of SEK 100–103 million expected.

• Uplisting to Nasdaq Stockholm main list completed in June 2024.

Financial highlights

• Q2 2024 net revenue was SEK 352.7–353 million, down from SEK 414–482.9 million in Q2 2023.

• Adjusted EBITDA was SEK 33–33.4 million (margin 9–9.5%), down from SEK 39–113.3 million (10–23.5% margin) in Q2 2023.

• Cash balance at quarter end was SEK 316.6–317 million, down SEK 150 million mainly due to investments and a SEK 20 million dividend payment.

• No external financial debt and strong liquidity position.

• Net loss for the quarter was SEK -38.8 million, with EPS at SEK -0.44.

Outlook and guidance

• Full-year 2024 net revenue guidance reiterated at SEK 1.8 billion, with adjusted EBITDA margin expected at the lower end of the 22–25% range.

• Major product releases and improved margins anticipated in H2, with cost reductions supporting profitability.

• Strategic goal to reach SEK 3 billion in net revenue and SEK 1 billion in adjusted EBITDA by 2026.

• S6 expected to operate at breakeven or slightly positive EBITDA for the rest of 2024, turning cashflow positive in 2025.