Enad Global 7 Interim Report: Jul–Sep 2022

Key insights

6 takeaways

01
Enad Global 7 reported a 25.5% year-over-year increase in net revenue to SEK 444.5 million for Q3 2022, with adjusted EBITDA rising 58.9% to SEK 113.1 million.See it on page 10
02
The divestment of the Russian subsidiary, Innova, for a guaranteed EUR 21 million plus up to EUR 13.5 million in contingent payments, generated a capital gain of SEK 91.3 million.See it on page 7
03
Despite a Q3 net profit of SEK 217.1 million, the company maintains a year-to-date net loss of SEK 713.8 million due to restructuring charges and discontinued operations.See it on page 10
04
Management projects full-year 2022 net revenue to reach approximately SEK 1.8 billion.See it on page 2
05
As of September 30, 2022, the company holds a liquidity position of SEK 654.2 million in cash and employs approximately 680 people globally.See it on page 12
06
The divestment of Innova has effectively removed the subsidiary from the balance sheet, allowing the group to focus on its core game development, marketing, and publishing segments.See it on page 26

Summary

Enad Global 7 demonstrated robust financial growth during the third quarter of 2022, characterized by a 25.5 percent year-over-year increase in net revenue to SEK 444.5 million. This performance was underpinned by organic expansion across the company’s core game development, marketing, and publishing segments. Adjusted EBITDA rose significantly by 58.9 percent to SEK 113.1 million, reflecting improved operational efficiency and a strengthened financial trajectory. Based on these results, the company projects full-year net revenue to reach approximately SEK 1.8 billion.

A pivotal development during this period was the divestment of the Russian subsidiary, Innova, for a guaranteed consideration of EUR 21 million, with additional contingent payments of up to EUR 13.5 million. This transaction generated a capital gain of SEK 91.3 million, which played a critical role in stabilizing the balance sheet following earlier asset write-downs. While the company recorded a net profit of SEK 217.1 million for the third quarter, the year-to-date net loss remains at SEK 713.8 million, primarily due to the impact of discontinued operations and one-time charges associated with the restructuring of the group.

As of September 30, 2022, the organization maintains a solid liquidity position with SEK 654.2 million in cash and a workforce of approximately 680 employees operating globally. With 88.6 million shares outstanding and a stable ownership structure led by Settecento Ltd and Jason Epstein, the company has successfully transitioned its portfolio by removing Innova from its balance sheet. This strategic shift positions the group to focus on its primary game and service segments as it moves toward the end of the fiscal year.