Q2 2025 Enad Global 7 AB (publ) Earnings Call Transcript
Key Points
- Net revenue grew by 7.4% year-over-year, with a significant 17.2% growth when excluding FX effects.
- Palia's release on PlayStation 5 and Xbox was a major success, contributing SEK38 million in net revenue and significantly increasing user engagement.
- The company maintains a strong liquidity position with a net cash position of SEK102 million, providing a solid foundation for future growth.
- Piranha's first DLC for MechWarrior 5 performed well, contributing to a 55% adjusted EBITDA margin.
- Enad Global 7 AB (ENADF) has a robust plan for Palia, including new features and content updates, aiming to establish it as a leading game in its genre.
- Currency fluctuations negatively impacted results, with a SEK36.5 million hit mainly affecting Daybreak and Big Blue Bubble.
- Daybreak's adjusted EBITDA margin was low at 1%, primarily due to additional costs and marketing expenses.
- The company faces challenges in the mid to lower end of the market, with too much supply and insufficient capital availability.
- EverQuest is trending below target due to ongoing litigation, impacting its performance.
- The second quarter saw low margins, partly due to marketing spend and revenue recognition timing issues.
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Good morning, everyone. Welcome to EG7's second quarter earnings release. My name is Fredrik Ruden, Deputy CEO and CFO; and with me, I have the company's CEO, Ji Ham. We will start this session with a presentation and end it with a Q&A, and I hand it over to you, Ji.
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Thanks, Fredrik. Thank you all. Good morning for joining us. We'll start with the key performance figures. Next slide, please. For the second quarter, our net revenues came in at SEK379 million with adjusted EBITDA of SEK38 million. Performance improved year-over-year.
Net revenue grew by 7.4%. Currency movement has impacted our results pretty significantly this year without the FX effect net revenue grew by 17.2%, and organic growth came in at 6.7% when you exclude FX as well as the contribution from Palia. Adjusted EBITDA grew by 12% year-over-year and margin
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