Enad Global 7 Interim Report: Apr-Jun 2023

Enad Global 7 demonstrated a robust financial recovery during the second quarter of 2023, characterized by a shift toward profitability and improved operational efficiency. The company achieved net revenue of SEK 482.9 million, marking a 4.3 percent year-over-year increase. This growth was primarily fueled by the strong performance of the Game segment, with titles such as My Singing Monsters, Core Keeper, and Shadows of Doubt serving as key revenue drivers. Conversely, the Service segment experienced a 40.9 percent decline, attributed to project timing and difficult year-over-year comparisons.

The organization’s financial health has strengthened significantly, evidenced by a transition from a substantial net loss in the first half of 2022 to a net profit of SEK 89.7 million for the same period in 2023. Adjusted EBITDA rose by 34.4 percent to SEK 113.3 million, reflecting a 23.5 percent margin. Strategic restructuring, most notably the closure of AntiMatter Games, is projected to generate SEK 50 million in annual cost savings. Furthermore, the company has successfully eliminated its external debt, maintaining a cash position of SEK 454 million as of June 30, 2023.

Operating within the global interactive entertainment market, the group continues to manage its capital structure while navigating internal governance dynamics. With 88.6 million shares outstanding, the company maintains ongoing acquisition-related liabilities of SEK 132.4 million owed to its leadership team. Despite these obligations and the recent restructuring, the company remains committed to its full-year performance targets, bolstered by new development contracts at Cold Iron Studios. The overall trajectory indicates a stabilization of the business model, moving away from the volatility of discontinued operations toward a more focused, game-centric growth strategy.