Enad Global 7 Year-End and Q4 2022 Investor Presentation

Enad Global 7’s year-end and fourth-quarter 2022 financial results demonstrate significant growth and a strategic shift toward long-term operational stability. For the full year, the company reported net revenue of SEK 1,866 million, representing a 27.1% year-over-year increase, and an adjusted EBITDA of SEK 483 million, reflecting a 49% growth rate. The fourth quarter specifically saw net revenue reach SEK 559 million, a 12% increase compared to the same period in the previous year, with an adjusted EBITDA margin of 32%.

The primary driver of this performance was the game segment, which achieved 83% revenue growth. This success was largely fueled by the viral performance of My Singing Monsters, which became the group’s highest-grossing title in the fourth quarter, contributing 46% of the segment's net revenue. While the service segment experienced a 49% revenue decline in the fourth quarter due to comparability issues stemming from pandemic-related product delays in 2021, its full-year performance remained positive with 12% revenue growth.

To ensure future predictability and mitigate risk, the company has initiated a pivot toward a work-from-home model for non-live studios and is divesting from unproven or subscale intellectual properties. This transition included a SEK 308.6 million write-down of capitalized development costs as of December 31, 2022. By eliminating speculative projects and focusing on core, profitable assets, the company has strengthened its balance sheet, ending the year debt-free with a net cash balance of SEK 304 million. These measures are intended to establish a more sustainable baseline for growth, moving away from high-risk development cycles toward a disciplined, value-focused business model.