EG7 Q3 2024 Interim Report

EG7 reported a robust Q3 2024 performance, with net revenue rising 32 % to MSEK 466 and adjusted EBITDA surging 204 % to MSEK 102, driven by a heavier backend‑weighted product pipeline and the launch of new titles. The acquisition of Singularity 6 on 2 July added its game Palia, contributing MSEK 28 to revenue. MechWarrior 5: Clans, released 17 October across Steam, Xbox, Game Pass and PlayStation, achieved a Metacritic score of 79 and a Steam rating above 77 %, positioning it to outperform its predecessor, which generated over SEK 300 million in net revenue. Despite a softer initial release window due to a delay near the Call of Duty launch, long‑tail sales are expected to strengthen with ongoing DLC support.

Segment contributions show Daybreak and Big Blue Bubble accounting for 46 % and 18 % of net revenue respectively, while the rest of the group contributed 36 %. Adjusted EBITDA margins improved to 20 % in Q3, slightly below the 2024 full‑year target of 20 % due to the MechWarrior delay. Cash flow from operations was MSEK 35, offset by investing outflows of MSEK 119 (S6 investments, capex and publishing) and financing inflows of MSEK 7, leaving a net cash position of MSEK 219.

The company projects 2024 full‑year net revenue near SEK 1.8 billion with adjusted EBITDA at 20 %, and a 2026 target of SEK 3 billion revenue and SEK 1 billion EBITDA. EG7 maintains a solid financial footing amid industry layoffs, focusing on organic growth through IP‑based titles and opportunistic M&A such as Singularity 6.