Q3 2025 Enad Global 7 AB (publ) Earnings Call Transcript
Key Points
- Piranha delivered a strong quarter with net revenue growth of 112% in local currency and 93% in SEK, driven by the success of MechWarrior 5: Mercenaries' DLC 7.
- Palia showed significant growth with a 77% increase in MAU and a 141% increase in monthly average revenue per user, indicating strong engagement and monetization.
- Daybreak's gross revenue increased year-over-year, driven by successful titles like Palia, Lord of the Rings Online, Dungeons & Dragons Online, and DC Universe Online.
- The company maintains a solid financial position with a net cash position and SEK396 million in cash, along with a new unutilized revolving credit facility of SEK100 million.
- Enad Global 7 AB (ENADF) has a foundation of more predictable revenues and cash flows, with 88% of net revenue in the quarter coming from live service and back catalog titles.
- Net revenue for Q3 declined by 24% year-over-year, with a 16% decline when adjusted for FX effects, indicating challenges in revenue growth.
- Big Blue Bubble underperformed with a 27% decline in net revenue in local currency and a 34% decline in SEK, primarily due to underperforming anniversary content.
- Cold Iron's game release has been delayed to Q3 2026, requiring an additional investment of $7.7 million, impacting short-term financial performance.
- EverQuest and EverQuest II showed softer performance compared to the previous year, affected by the unauthorized title 'The Hero's Journey' and anniversary comparisons.
- Magic: The Gathering Online underperformed due to weaker cardset releases, contributing to lower-than-expected results.
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Welcome, everyone, to EG7's third quarter earnings release. My name is Fredrik Rüdén. I'm Deputy CEO and CFO. With me in this call, I have my colleague and the company's CEO, Ji Ham. We will start with the presentation and then end with a Q&A session.
I hand it over to you, Ji.
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Thanks, Fredrik. Thank you for all joining us. Let's go to the first slide. For Q3, net revenue came at SEK355 million with adjusted EBITDA coming in at SEK63 million, representing 18% margin. Year-over-year net revenue declined by 24%. Without the adverse FX effect, year-over-year decline was lower at 16%. Currency movement has been exaggerating the decline throughout this year, unfortunately, because of the significant volatility with the exchange rate over the last 12 months.
Next slide, please. Some notable
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