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.

• Full-year 2024 net revenue was SEK 1,713 million, down 16.2% year-over-year, with adjusted EBITDA of SEK 326 million and a margin of 19%.

• 2024 was a transition year with heavy investment in new products; 2025 is expected to return to growth with launches of Palia and Cold Iron's new title.

• Cost-saving measures and restructuring, including winding down Toadman, are expected to yield annual savings of up to SEK 87.7 million.

• Full-year results were impacted by underperformance of MechWarrior 5: Clans and market headwinds.

Financial highlights

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

• Q4 adjusted EBITDA rose 31% year-over-year to SEK 128.7 million; adjusted EBIT was SEK 57.4 million.

• Operating cash flow for Q4 was SEK 196 million, ending the year with SEK 322 million in cash and minimal bank debt.

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

• Investments in new growth initiatives peaked at SEK 238 million in 2024, with total investments in Palia, Clans, and Cold Iron's new title at SEK 403.3 million since 2023.

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).

• 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.