Annual Report: January – December 2024

Enad Global 7 (EG7) experienced a period of significant transition and consolidation during the 2024 fiscal year, characterized by strategic restructuring in response to a volatile global gaming market. Net revenue declined 16.2 percent to SEK 1,713.0 million, primarily due to the normalization of performance for My Singing Monsters following its 2023 viral peak. This revenue contraction, combined with a SEK 342.3 million goodwill impairment and increased depreciation expenses, resulted in a net loss of SEK 236.4 million for the year. Despite these headwinds, the group’s diversified live-service portfolio—anchored by Daybreak and Big Blue Bubble—contributed 68.9 percent of total revenue, providing a stable foundation of predictable cash flows.

To improve future margins and position the group for a return to growth in 2025, management implemented aggressive cost-saving measures expected to yield SEK 191.0 million in annual savings by the second half of 2025. These initiatives included the strategic wind-down of the Toadman studio and restructuring at Piranha Games. Simultaneously, the group focused on long-term expansion through the acquisition of Singularity 6, the developer of Palia, and an uplisting to Nasdaq Stockholm. Financial stability was further bolstered post-period by the placement of a SEK 350 million senior unsecured bond in February 2025 to fund future development and M&A activity.

The group maintains a decentralized global structure with 546 employees, emphasizing sustainability and corporate responsibility. Environmental efforts have seen 93 percent of server capacity transitioned to external data centers, with 80 percent powered by renewable energy. Governance remains robust, with a seven-member Board of Directors overseeing a framework based on the COSO model. While the core gaming activities are not yet covered by the EU Taxonomy, the group adheres to strict "zero tolerance" policies regarding discrimination and corruption, maintaining a clean record of zero workplace accidents or material data breaches throughout the reporting period.