Enad Global 7 Interim Report: Jul–Sep 2024

Enad Global 7 navigated a complex third quarter in 2024, characterized by a strategic pivot toward long-term operational efficiency despite immediate financial headwinds. The company recorded net revenue of SEK 465.7 million, representing a 10% year-over-year decline from the SEK 517.3 million reported in the same period of 2023. This contraction was largely attributed to market weakness within the Petrol segment and the delayed release of the anticipated title MechWarrior 5: Clans. Consequently, the organization incurred a net loss of SEK 29.2 million for the quarter, prompting a downward revision of the full-year adjusted EBITDA margin expectation to 20%.

To stabilize financial performance and ensure future viability, management initiated a significant restructuring program. This effort includes the closure of select offices and a workforce reduction of approximately 100 employees, measures projected to yield SEK 63 million in annual cost savings. Despite these austerity measures, the company remains committed to its growth portfolio, maintaining a full-year revenue target of SEK 1.8 billion. Operational highlights during this period included the successful console launch of Core Keeper and the strategic acquisition of Singularity 6 for SEK 73.7 million.

The integration of Singularity 6 serves as a cornerstone for the company’s 2025 growth strategy. By investing an additional SEK 100 million into the development and commercial release of the title Palia, the firm aims to capitalize on new market segments. While the acquisition contributed to a goodwill valuation of SEK 16.8 million, leadership anticipates that the studio will reach EBITDA neutrality by the end of 2024 and transition to cashflow positive status in 2025. These combined efforts reflect a broader transition toward a leaner, more focused organization capable of sustaining its development pipeline through the coming fiscal year.