Enad Global 7 (EG7) Q4 2024 earnings summary

Executive summary

• Q4 2024 was the strongest quarter, with net revenue of SEK 513 million and adjusted EBITDA of SEK 129 million, up 8.4% and 31% year-over-year, respectively, driven by new game releases and improved segment performance.

• Full-year net revenue was SEK 1.7 billion, down 16.2% year-over-year, reflecting normalization after a record 2023 and underperformance of MechWarrior 5: Clans.

• 2024 was a transition year with heavy investment in new products; 2025 is expected to return to growth with a robust release pipeline.

• Operating cash flow for Q4 was SEK 196 million, ending the year with SEK 322 million in cash and no debt.

• Major cost reduction measures and restructuring are expected to yield annualized savings of up to SEK 88 million, with full effect from H2 2025.

Financial highlights

• Q4 adjusted EBITDA margin reached 25%, up from 21% in the prior year.

• Q4 adjusted EBITDA rose 31.1% year-over-year to SEK 128.7 million; adjusted EBIT was SEK 57.4 million.

• Q4 net revenue from live service games was SEK 344 million, representing 67% of group revenue.

• Full-year adjusted EBITDA margin was 19%; full-year adjusted EBITDA was SEK 326 million.

• Net cash at year-end was SEK 322 million.

Outlook and guidance

• 2025 is expected to see a return to growth, with new releases including Palia (Q2) and Cold Iron's new game (H2), and a stable live service portfolio.

• No formal guidance provided for 2025 due to variability in new product launches.

• All business units are expected to be profitable in 2025 following cost rationalizations.

• No dividend proposed for 2024.