Enad Global 7 (publ) ("EG7") today announces that it will record a non-cash impairment of SEK 2,051.7 million, of which SEK 1,816.5 million has no correlation with performance expectations in any ongoing projects in the Group but is an outcome of a strategic decision to move certain potential future game investments to Canada instead of investing in the entity with the largest book value of intangible assets. As a result, the annual amortization planned to affect EG7's financial statements in 2026 decreases by approximately SEK 120 million, a number that would otherwise have decreased EG7's Net Profit by the same amount in 2026.
The Board has decided to leverage the average lower cost level in an area with highly skilled Canadian game developers. Before this decision was taken, the net present value of certain potential future projects supported the book value of intangible assets in that entity. As a result of that strategic decision and after conducting the normal annual impairment test EG7 has identified an impairment need of SEK 1,816.5 million. This impairment has no correlation with performance expectations in any of the ongoing projects in the Group. The impairment consists of SEK 1,664.4 million related to acquisition-related goodwill and SEK 152.1 million related to other acquisition-related intangible assets.
In addition to the above, EG7 has identified further impairment need of a total of SEK 235.2 million. This is connected to a decline in physical publishing in Fireshine and lower than expected performance from the original MechWarrior 5: Clans title within Piranha.
Altogether, above-mentioned impairments will result in a SEK 120 million lower annual amortization, increasing Net Profit by the same amount in 2026. The remaining equity in the holding company, which limits the future potential of paying dividends or conducting share buybacks, is after the impairments expected to be around SEK 1.5 billion by end of 2026.
FOR MORE INFORMATION, PLEASE CONTACT:
Fredrik Rüdén, Group Deputy CEO and CFO
Phone: +46 733 117 262
fredrik.ruden@enadglobal7.com
Robin Lundell, Head of Investor Relations & Sustainability
Tel: +46 733 117 262
robin.lundell@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 approximately 360 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 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 560 employees in 12 offices worldwide.
Enad Global 7 is listed on Nasdaq Stockholm with Ticker Symbol: EG7
