Enad Global 7 Year-End and Q4 Report 2022

Key insights

6 takeaways

01
Enad Global 7 reported a net loss of SEK 1,239.0 million for 2022, primarily driven by a SEK 308.6 million write-down in R&D and costs associated with discontinued operations.See it on page 24
02
Annual net revenue grew by 27.1% to SEK 1,865.9 million, while adjusted EBITDA increased by 48.6% to SEK 482.8 million.See it on page 10
03
The company is pivoting its business model toward work-for-hire services, resulting in the cancellation of internal projects at the Toadman and Antimatter Games studios.See it on page 6
04
Big Blue Bubble studio achieved record Q4 results, significantly bolstered by the viral success of the game My Singing Monsters.See it on page 6
05
The group divested its Russian subsidiary, Innova Intellectual Properties, for EUR 21 million to help optimize its capital structure.See it on page 27
06
Financial stability is supported by a liquidity reserve of SEK 407.8 million and a proactive debt reduction strategy that included a SEK 300 million loan repayment.See it on page 12

Summary

Enad Global 7 experienced a transformative 2022, characterized by robust top-line growth alongside a strategic pivot toward a service-oriented business model. The company achieved a 27.1 percent increase in annual net revenue, reaching SEK 1,865.9 million, while adjusted EBITDA rose by 48.6 percent to SEK 482.8 million. This performance was underpinned by strong contributions from the Game and Service segments, most notably the viral success of My Singing Monsters, which propelled record results for the Big Blue Bubble studio during the fourth quarter.

Despite these operational gains, the company’s bottom line was heavily impacted by significant non-cash charges and divestment activities. A net loss of SEK 1,239.0 million was recorded for the full year, largely stemming from discontinued operations and a substantial write-down of SEK 308.6 million in capitalized research and development. These impairments reflect a deliberate shift in corporate strategy, as the group moves away from certain internal game development projects at the Toadman and Antimatter Games studios to prioritize work-for-hire services.

The company’s financial position remains resilient, supported by a liquidity reserve of SEK 407.8 million and proactive debt management. During the period, the group successfully divested its Russian subsidiary, Innova Intellectual Properties, for EUR 21 million and executed a SEK 300 million loan repayment. By further committing to the reduction of its revolving credit facility, the organization aims to optimize its capital structure and generate annual interest savings. These actions collectively position the group to focus on its core service-based competencies while maintaining the financial flexibility necessary for future operations.