Enad Global 7 Interim Report: January-March 2022

Key insights

6 takeaways

01
Enad Global 7 reported Q1 2022 net revenue of SEK 452.2 million, a 49% increase year-over-year, with an adjusted EBITDA of SEK 112.6 million.See it on page 2
02
The company is divesting its Innova subsidiary and discontinuing the Marvel project to mitigate geopolitical risk and streamline operations, resulting in a SEK 230 million write-down for Q2.See it on page 24
03
Management maintains a full-year 2022 revenue guidance of SEK 1.6 to 1.7 billion despite the strategic portfolio realignment.See it on page 2
04
The group is shifting its long-term strategy to focus on smaller, internal intellectual property initiatives to de-risk its development pipeline.See it on page 4
05
Growth in the first quarter was supported by successful marketing performance for Elden Ring and the digital transition of Core Keeper.See it on page 8
06
The organization currently operates with approximately 880 employees across 16 international offices.See it on page 27

Summary

Enad Global 7 demonstrated significant financial momentum during the first quarter of 2022, achieving net revenue of SEK 452.2 million. This represents a 49 percent increase compared to the same period in the previous year, a growth trajectory fueled by both organic expansion and strategic acquisitions. Key operational successes, such as the marketing performance for Elden Ring and the digital transition of Core Keeper, underscored the group’s ability to capitalize on high-profile industry releases. Adjusted EBITDA reached SEK 112.6 million, reflecting a robust underlying business model despite the broader normalization of gaming trends following the pandemic.

The company is currently undergoing a strategic realignment to mitigate geopolitical exposure and optimize its internal development pipeline. This transition includes the planned divestment of the Innova subsidiary to address regional risks associated with the Russia/CIS market and the discontinuation of the Marvel project. While these decisions necessitate a SEK 230 million write-down in the second quarter, they serve to reallocate resources toward smaller, internal intellectual property initiatives. This shift aims to de-risk the portfolio and focus long-term efforts on sustainable, proprietary development.

Operating as a global entity with approximately 880 employees across 16 international offices, the group maintains a diversified presence in both physical and digital publishing. Management remains confident in the company’s operational stability and financial health, maintaining a full-year revenue guidance of SEK 1.6 to 1.7 billion. By prioritizing internal IP and streamlining its subsidiary structure, the organization is positioning itself to navigate ongoing macroeconomic challenges while sustaining its growth objectives throughout the remainder of the fiscal year.