Enad Global 7 Annual Report 2021

Key insights

6 takeaways

01
Enad Global 7 achieved a financial turnaround in 2021, reporting a profit of 96.7 million SEK and earnings per share of 1.13 SEK, compared to a 98.1 million SEK loss in 2020.See it on page 6
02
Net sales grew to 1,670.5 million SEK in 2021, driven primarily by the aggressive acquisitions of Piranha Games and Innova.See it on page 3
03
The company’s workforce expanded significantly, increasing from an average of 178.6 employees in 2020 to 807.6 in 2021.See it on page 23
04
Following the onset of the conflict in Ukraine, the company divested its Russian subsidiary, Innova, through a management buy-out valued at 32 million EUR.See it on page 42
05
The group managed a diverse portfolio of 22 live titles and maintained a development pipeline of 10 new projects throughout the year.See it on page 2
06
Financial reporting was standardized under IFRS 15 to ensure consistent revenue recognition across the Games and Services segments for in-game items and service contracts.See it on page 15

Summary

Enad Global 7 underwent a period of rapid transformation and expansion during 2021, characterized by a strategic shift toward a decentralized management structure and the adoption of International Financial Reporting Standards. The company’s primary objective throughout the year was to scale its operations through aggressive acquisitions, most notably Piranha Games and Innova, which contributed to a substantial increase in net sales to 1,670.5 million SEK. This growth trajectory was accompanied by a significant rise in the workforce, which expanded from an average of 178.6 employees in 2020 to 807.6 in 2021, reflecting the company’s broader footprint across the global gaming industry.

Financial performance in 2021 marked a recovery from the previous year, with the group reporting a profit of 96.7 million SEK and earnings per share of 1.13 SEK, a notable turnaround from the 98.1 million SEK loss recorded in 2020. The company’s balance sheet was bolstered by a robust liquidity position and a reduction in contingent consideration liabilities, though it faced impairment charges related to specific units. Revenue recognition across the Games and Services segments was standardized under IFRS 15, ensuring consistent reporting for consumable in-game items and long-term service contracts. Furthermore, the company maintained a disciplined approach to risk management, reporting minimal credit losses and stable debt profiles.

The scope of operations remained international, encompassing a diverse portfolio of 22 live titles and a pipeline of 10 new projects. However, the geopolitical landscape necessitated a significant post-balance sheet adjustment, specifically the decision to divest the Russian subsidiary, Innova, via a management buy-out for 32 million EUR following the onset of the conflict in Ukraine. Alongside these operational shifts, the company maintained a commitment to safe gaming environments through rigorous adherence to PEGI and ESRB standards, utilizing both automated and manual moderation to protect its user base.