Enad Global 7 Interim Report: January–September 2020

Key insights

6 takeaways

01
Enad Global 7 reported a significant revenue increase to SEK 374.0 million for the first nine months of 2020, compared to SEK 94.9 million during the same period in 2019.See it on page 3
02
The company recorded a net loss of SEK 49.9 million for the period, driven by aggressive investment in its game pipeline and acquisition costs, including the purchase of Big Blue Bubble.See it on page 4
03
A directed share issue raised approximately SEK 429 million, resulting in a strong liquidity position of SEK 540.8 million in cash and cash equivalents as of September 30, 2020.See it on page 18
04
The company is strategically shifting its business model toward internal game development and self-publishing to capture higher value within the gaming ecosystem.See it on page 21
05
As of September 2020, the organization employs approximately 270 people across 10 global offices.See it on page 6
06
Management is prioritizing long-term scalability and an active merger and acquisition strategy over short-term profitability despite the operational challenges of the COVID-19 pandemic.See it on page 5

Summary

Enad Global 7 experienced a period of rapid expansion during the first nine months of 2020, characterized by a significant increase in net revenue to SEK 374.0 million, up from SEK 94.9 million during the same period in 2019. This growth trajectory is underpinned by a diversified business model that integrates game development, publishing, and distribution services. With a workforce of approximately 270 employees operating across 10 global offices, the company is strategically shifting its focus toward internal game development and self-publishing to capture greater value within the gaming ecosystem.

Financial performance reflects an aggressive investment strategy rather than immediate profitability. While revenue surged, the company recorded a net loss of SEK 49.9 million, a result of substantial capital allocation toward its game pipeline and acquisition-related expenses, most notably the purchase of Big Blue Bubble. To sustain this momentum, the company successfully executed a directed share issue that raised approximately SEK 429 million. Consequently, the organization maintains a robust liquidity position, holding SEK 540.8 million in cash and cash equivalents as of September 30, 2020.

Despite the operational challenges posed by the global COVID-19 pandemic, management maintains a neutral outlook on earnings, prioritizing long-term scalability over short-term gains. The company’s primary objective remains the execution of its active merger and acquisition strategy, complemented by the continued development of its internal intellectual property. By leveraging its strengthened financial foundation, the organization aims to solidify its position as a vertically integrated player in the global gaming market, balancing rapid inorganic growth with the maturation of its internal creative capabilities.