Enad Global 7 Annual Report 2022

Key insights

6 takeaways

01
EG7 reported a net loss of SEK 1,238.9 million in 2022, primarily due to asset impairments from the sale of its Russian subsidiary, Innova, and the cancellation of a high-profile Marvel project.See it on page 85
02
Net revenue grew by 27.1% to SEK 1,865.9 million, driven by strong performance in the Games segment from 'The Lord of the Rings Online' and 'My Singing Monsters', alongside a 12% expansion in the Services segment.See it on page 3
03
The company significantly improved its financial position by reducing liabilities to credit institutions and maintaining a robust equity ratio of 78.8%.See it on page 85
04
Liquidity remains stable with a cash position of SEK 405.2 million, supported by the post-year-end repayment of the company's remaining revolving credit facility.See it on page 67
05
Strategic restructuring led to a leaner operational footprint, with the firm prioritizing long-term stability and resource reallocation over short-term profitability.See it on page 10
06
The company reported no material data breaches or unethical incidents during the 2022 fiscal year and received an unqualified audit opinion on its financial and sustainability reporting.See it on page 88

Summary

Enad Global 7 (EG7) navigated a transformative 2022 fiscal year characterized by significant revenue growth alongside substantial structural restructuring. The company achieved a 27.1% increase in net revenue, reaching SEK 1,865.9 million, bolstered by the strong performance of its Games segment—specifically The Lord of the Rings Online and My Singing Monsters—and a 12% expansion in its Service segment. Despite this top-line success, the group recorded a net loss of SEK 1,238.9 million, primarily driven by strategic divestments and asset impairments, including the sale of its Russian subsidiary, Innova, and the cancellation of a high-profile Marvel project.

The company’s primary objective throughout the year was to streamline operations and reduce its risk profile. By divesting non-core assets and terminating underperforming projects, EG7 sought to reallocate resources toward more predictable, long-term gaming initiatives. These efforts were reflected in a strengthened balance sheet, as the company significantly reduced its liabilities to credit institutions and maintained a robust equity ratio of 78.8%. While earnings per share fell to -14.04, the firm’s liquidity remained stable, supported by a cash position of SEK 405.2 million and the subsequent post-year-end repayment of its remaining revolving credit facility.

Operating globally, EG7 continues to manage its business through a dual-segment structure of Games and Services, adhering to IFRS 15 accounting standards. Governance remains centered on Swedish regulatory requirements, with a focus on sustainability, data privacy, and ethical business conduct. The company reported no material data breaches or unethical incidents during the period. With an unqualified audit opinion confirming the accuracy of its financial and sustainability reporting, EG7 enters the subsequent period with a leaner operational footprint, having prioritized long-term stability and shareholder value over short-term profitability.