Enad Global 7 Investor Presentation: Jan-Mar 2023

Key insights

6 takeaways

01
Enad Global 7 achieved record Q1 2023 financial results with SEK 572 million in net revenue, a 43% year-over-year increase, and an adjusted EBITDA margin of 33%.See it on page 2
02
The Game Segment drove performance with SEK 475 million in revenue, an 86% increase, largely due to 'My Singing Monsters' which accounted for 46% of segment revenue and 68% of adjusted EBITDA.See it on page 5
03
The company ended the quarter in a strong liquidity position with SEK 453 million in cash and zero bank debt at the holding level.See it on page 13
04
User engagement for 'My Singing Monsters' reached an all-time high of 1.63 million average daily active users, supported by 7 million new users during the quarter.See it on page 4
05
The Service Segment experienced a 33% year-over-year revenue decline to SEK 97 million, attributed by management to unfavorable comparisons and product pipeline timing.See it on page 9
06
Management projects full-year 2023 revenue of SEK 2.2 billion with expected adjusted EBITDA margins between 23% and 25%.See it on page 2

Summary

Enad Global 7’s investor presentation for the first quarter of 2023 details a period of record-breaking financial performance, characterized by significant year-over-year growth and a strengthened balance sheet. The company achieved net revenue of SEK 572 million, a 43% increase compared to the same period in the previous year, and an adjusted EBITDA of SEK 190 million, representing a 33% margin. These results underscore the company's transition into its strongest financial position since inception, ending the quarter with SEK 453 million in cash and zero bank debt at the holding level.

The primary driver of this growth was the Game Segment, which generated SEK 475 million in revenue—an 86% increase—largely fueled by the continued success of the title My Singing Monsters. This game alone contributed 46% of the segment’s revenue and 68% of its adjusted EBITDA, maintaining high user engagement with over 7 million new users and an all-time high average daily active user count of 1.63 million during the quarter. Other contributors included Daybreak’s stable live-service games and Piranha’s record-setting performance, supported by successful DLC releases.

Conversely, the Service Segment reported SEK 97 million in revenue, a 33% decline year-over-year, which management attributed to unfavorable comparisons and the timing of the 2023 product pipeline. Despite this, the segment maintained operational focus through successful indie publishing and marketing campaigns for major industry brands. Looking forward, the company maintains a disciplined strategy, prioritizing long-term sustainable growth over short-term volatility. Management expects a normalized, higher baseline for its key titles and has provided a full-year revenue guidance of SEK 2.2 billion, with projected margins between 23% and 25%.