Enad Global 7 Q3 2023 Investor Presentation

Key insights

6 takeaways

01
Enad Global 7 reported Q3 2023 net revenue of SEK 517 million with 16% year-over-year organic growth and an adjusted EBITDA margin of 27%.See it on page 2
02
Big Blue Bubble drove significant performance with net revenues 157% higher than the same period in 2022, while the Daybreak unit saw a 15% year-to-date revenue decline due to underperformance in DCUO and LOTRO.See it on page 4
03
The company maintains a strong cash position of SEK 473 million and is initiating a shareholder capital return program, with an Extraordinary General Meeting scheduled for December.See it on page 15
04
Strategic growth plans include an uplisting to the main exchange in 2024 and the release of MechWarrior 5: Clans in H2 2024, followed by a Cold Iron multiplayer shooter in 2025.See it on page 3
05
Management expects to meet full-year 2023 guidance but anticipates softer growth in 2024 due to difficult year-over-year comparisons following the My Singing Monsters performance boost.See it on page 13
06
Toadman is on track to reach breakeven by the end of 2023, while Piranha and Fireshine Games continue to deliver solid performance.See it on page 5

Summary

Enad Global 7’s Q3 2023 investor presentation outlines a period of solid profitability and strategic development, characterized by 16% year-over-year organic growth and a net revenue of SEK 517 million. The company reported an adjusted EBITDA of SEK 141 million, representing a 27% margin, and a strengthened cash position of SEK 473 million. These results underscore the company’s focus on maximizing cash flows from its existing portfolio while selectively investing in long-term growth initiatives.

Performance across business units was mixed. Big Blue Bubble continued to deliver strong results, maintaining net revenues 157% higher than the same period in 2022. Conversely, the Daybreak unit experienced softer-than-expected performance, with year-to-date net revenue down approximately 15% due to underperformance in core titles like DCUO and LOTRO. Efforts to stabilize these assets are underway, including upcoming console updates and anniversary events. Other units, such as Piranha and Fireshine Games, reported solid performance, while Toadman continued its trajectory toward profitability, expecting to reach breakeven by year-end.

Looking ahead, the company is prioritizing a shareholder capital return program, with an Extraordinary General Meeting scheduled for December to secure necessary approvals. Strategic milestones include a planned uplisting to the main exchange in 2024 and the expansion of its publishing pipeline. This includes a new multiplayer shooter developed by Cold Iron for a 2025 release and the upcoming launch of MechWarrior 5: Clans in the second half of 2024. While the company expects to meet its full-year guidance, it anticipates potentially softer growth in 2024 as it faces tougher year-over-year comparisons following the temporary performance boost provided by My Singing Monsters.