Enad Global 7 (EG7) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a strong rebound with net revenue reaching SEK 466 million, up 32% sequentially, and adjusted EBITDA rising over 200% to SEK 102 million, driven by new releases and the integration of Singularity 6.

• The acquisition of Singularity 6 added the game Palia, contributing SEK 28 million in net revenue during the quarter.

• Cost-saving and business optimization initiatives were completed, targeting annual savings of SEK 103 million.

• The business benefited from a diversified portfolio, with recurring revenues from long life cycle IPs and successful new releases.

• Strategic focus remains on organic growth, new product launches, and opportunistic M&A, with a conservative approach to risk and capital allocation.

Financial highlights

• Q3 net revenue was SEK 465.7 million, up from SEK 353 million in Q2 2024, but down 10% year-over-year.

• Adjusted EBITDA reached SEK 102 million, the strongest quarter of the year, with a margin of 21.8%.

• Cash position at quarter-end was SEK 218.5 million, with no material bank debt.

• Over the last 12 months, net revenue was SEK 1,673 million with an 18% adjusted EBITDA margin.

• Cash flow from operations in Q3 was SEK 35.6 million.

Outlook and guidance

• Full-year 2024 net revenue is projected at SEK 1.8 billion, with adjusted EBITDA margin guidance lowered to 20% due to delayed game launches.

• Q4 is expected to be strong, driven by new releases and holiday seasonality.

• 2025 and 2026 are anticipated to bring major releases and growth, with 2026 targets of SEK 3 billion in net revenue and SEK 1 billion in adjusted EBITDA.