Enad Global 7 Annual Report 2019

Key insights

6 takeaways

01
Enad Global 7 executed a vertical integration strategy in 2019 by acquiring Petrol Advertising, Antimatter Games, and Sold Out to expand across development, marketing, and publishing.See it on page 3
02
The company reported 2019 revenue of SEK 168.4 million, but incurred a net loss of SEK 28.1 million and a negative EBIT margin of -13.66%.See it on page 4
03
Financial performance was significantly impacted by the costs of rapid scaling and interest expenses from bond loans issued on the Nasdaq First North Growth Market.See it on page 35
04
The organization doubled its workforce from 47 to 93 employees during the 2019 fiscal year.See it on page 33
05
The strategic expansion resulted in a project pipeline of over 20 titles and established an operational presence across six countries in North America and Europe.See it on page 5
06
Management prioritized liquidity and revenue diversification to maintain stability during the transition and the onset of the COVID-19 pandemic.See it on page 47

Summary

Enad Global 7 underwent a transformative period in 2019, shifting from a smaller entity to a diversified international group through aggressive strategic acquisitions. By integrating Petrol Advertising, Antimatter Games, and Sold Out, the organization successfully expanded its footprint across the game development, marketing, and publishing sectors. This vertical integration strategy aimed to move the company up the industry value chain, establishing a robust pipeline of over 20 projects and securing a presence in six countries across North America and Europe.

Financial performance during this expansion phase reflected the costs of rapid scaling. While revenue grew to SEK 168.4 million, the company reported a net loss of SEK 28.1 million and a negative EBIT margin of -13.66%. These results were heavily influenced by increased financial costs associated with bond loans issued on the Nasdaq First North Growth Market to fund acquisitions and operational growth. Despite these pressures, the company significantly increased its human capital, doubling its workforce from 47 to 93 employees, and bolstered its balance sheet with substantial intangible assets and goodwill.

Management maintained a focus on long-term stability by prioritizing liquidity and diversifying revenue streams to mitigate risks. Even as the onset of the COVID-19 pandemic introduced global uncertainty, core development operations remained resilient. The financial statements, which were audited and approved by Ernst & Young AB, confirm that the company’s accounting practices and financial position align with the Annual Accounts Act. Ultimately, the 2019 fiscal year served as a foundational period for the group, positioning it to leverage its newly acquired assets and integrated business model for future growth in the global gaming market.