April - June 2024 in Summary
- Net Revenue of SEK 352.7 (482.9) million, representing an FX-adjusted decline of 27.8 percent.
- EBITDA of SEK 23.6 (92.3) million and Adjusted EBITDA of SEK 33.4 (113.3) million.
- EBIT of SEK -25.9 (25.1) million and Adjusted EBIT of SEK -16.1 (60.0) million.
- Profit before tax of SEK -33.4 (15.5) million.
- Earnings per share of SEK -0.44 (0.02). Adjusted earnings per share of SEK -0.35 (0.33).
- Cash flows from operations of SEK -23.2 (53.8) million.
- Cash balance of SEK 316.6 million with no material bank debt.
- On June 17th, EG7 changed its listing venue to Nasdaq Stockholm from First North.
Comment from Ji Ham, CEO of EG7:
EG7 delivered Net Revenue of SEK 352.7 (482.9) million, EBITDA of SEK 23.6 (92.3) million and Adjusted EBITDA of SEK 33.4 (113.3) million for the second quarter, corresponding to an Adjusted EBITDA margin of 9.5 (23.5) percent. The results are reflective of a quarter with no major content or product releases and where My Singing Monsters is delivering on its new normalized level.
During the period and in July, the group implemented comprehensive cost-saving and business optimization efforts to improve performance. The total expected annual cost-savings from the efforts amount to SEK 103 million. The largest adjustments were made to the underperforming business units to achieve profitability. As a result of these efforts, the downward pressure on the group's margins will be reduced going forward.
On July 2, 2024, Daybreak acquired 100 percent of Singularity 6 (S6). S6 is the developer behind Palia, an online multiplayer life simulation game currently available in open beta on Nintendo Switch and PC. Along with the transaction, Daybreak will be investing in the remaining development needs for Palia's release on the latest generation consoles and is aiming to bring the game to a broader audience globally with a wider release in 2025.
The market weakness over the last few quarters has been putting pressure on our service-focused businesses. However, with the recent cost-saving efforts and a number of larger product releases slated for the latter part of Q3 and Q4, we reiterate our full-year guidance of SEK 1.8 billion in Net Revenue with an Adjusted EBITDA margin at the lower end of the 22-25 percent range. However, we expect continuing market challenges for the next few quarters, increasing short-term risk profile even if we are making progress against long-term targets with positive steps such as the acquisition of S6.
FOR MORE INFORMATION, PLEASE CONTACT:
Fredrik Rüdén, Group Deputy CEO and CFO
Phone: +46 733 117 262
fredrik.ruden@enadglobal7.com
Ludvig Andersson, Head of Investor Relations & Sustainability
Phone: +46 730 587 608
ludvig.andersson@enadglobal7.com
About EG7
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 470+ game developers and develops its own original IPs, as well as acts as consultants to other publishers around the world through its game development divisions Daybreak Games, Piranha Games, Toadman Studios and Big Blue Bubble. In addition, the group's marketing department Petrol has contributed to the release of 2,000+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution departments Fireshine Games hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with approximately 630 employees in 16 offices worldwide.
Enad Global 7 is listed on Nasdaq Stockholm with Ticker Symbol: EG7
This information is information that Enad Global 7 is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-08-14 07:00 CEST.
