Enad Global 7 Investor Presentation: Apr-Jun 2023

Key insights

6 takeaways

01
Enad Global 7 achieved its seventh consecutive quarter of profitability, reporting SEK 483 million in net revenue and an adjusted EBITDA of SEK 113 million, a 34% year-over-year increase.See it on page 2
02
The Games segment drove performance with a 37% revenue increase to SEK 369 million, while the Services segment struggled with a 41% revenue decline to SEK 114 million and a negative EBITDA of SEK 6 million.See it on page 9
03
Big Blue Bubble remains the company's primary profit driver, contributing 39% of Games segment revenue and 67% of its adjusted EBITDA, largely fueled by 6 million new users for My Singing Monsters.See it on page 10
04
The company reaffirmed its full-year 2023 guidance, targeting SEK 2.2 billion in net revenue and an EBITDA margin between 23% and 25%.See it on page 13
05
Operational adjustments include the closure of the AntiMatter studio in July 2023, while the company continues to focus on upcoming releases for MechWarrior 5 and its Fireshine indie publishing label.See it on page 6
06
Despite being a seasonally low quarter, the company maintained a stable balance sheet with SEK 54 million in operating cash flow.See it on page 12

Summary

Enad Global 7’s financial results for the second quarter of 2023 demonstrate a period of sustained growth and profitability, marking seven consecutive quarters of positive performance. The company reported net revenue of SEK 483 million, representing a 4.3% year-over-year increase, and an adjusted EBITDA of SEK 113 million, reflecting a 34% growth and a 24% margin. These results were achieved despite the quarter traditionally representing a seasonal low for the business.

The company’s performance is bifurcated into two primary segments: Games and Services. The Games segment served as the primary growth engine, generating SEK 369 million in net revenue—a 37% increase—and SEK 127 million in adjusted EBITDA. Big Blue Bubble was the standout contributor, accounting for 39% of the segment's revenue and 67% of its adjusted EBITDA, largely driven by the continued success of My Singing Monsters. This title maintained strong engagement, recording nearly 6 million new users and an average daily active user count of 1.1 million during the quarter. Conversely, the Services segment faced headwinds, with net revenue declining 41% year-over-year to SEK 114 million and an adjusted EBITDA of SEK -6 million, attributed to a smaller pipeline of third-party product releases and project delays within the marketing division.

Operationally, the company maintains a stable balance sheet with SEK 54 million in operating cash flow. While the AntiMatter studio was closed in early July, the company continues to focus on long-term sustainable growth, with upcoming content releases for titles such as MechWarrior 5 and ongoing indie publishing efforts through Fireshine. Based on these performance trends, the company has reaffirmed its full-year 2023 guidance, projecting net revenue of SEK 2.2 billion and an EBITDA margin between 23% and 25%.