Q2 2026 Enad Global 7 AB (publ) Earnings Call Transcript
Key Points
- Enad Global 7 AB (ENADF) reported a strong Q2 with net revenue up 25% year-over-year (30% in constant currency) and adjusted EBITDA surging to SEK99 million from SEK37.5 million, expanding margins by 1,100 basis points to 21%.
- All five business units were profitable and delivered year-over-year adjusted EBITDA growth, with Fireshine leading the way (127% revenue growth), followed by Piranha (53%) and Big Blue Bubble (21%).
- Fireshine's early access title Far Far West sold over 1 million units in its first weeks and holds a 96% positive rating on Steam, with a 1.0 release and console versions planned for 2027 to drive future contributions.
- The upcoming release of Aliens: Fireteam Elite 2 (August 25) is tracking ahead of the first game's wishlist momentum, and the acquisition of developer Cold Iron Studios closed, giving Enad Global 7 AB (ENADF) full control over development and publishing.
- The live service and back catalog portfolio grew 9.5% to SEK325 million (17% organic growth in constant currency), with Palia reaching 10 million lifetime players and EverQuest Legends off to a strong start, boosting Q3 expectations.
- Daybreak's Q2 net revenue was essentially flat year-over-year in local currency, and its adjusted EBITDA margin was only 5% due to seasonal lows, lighter content releases, and revenue recognition timing.
- Currency headwinds negatively impacted net revenue by SEK19.1 million in the quarter, offsetting some of the organic growth.
- Operating cash flow of SEK120 million was boosted by SEK65 million in working capital timing effects, including accrued royalties at Fireshine that will be paid out in Q3, making the underlying cash flow lower at SEK94 million.
- Petrol generated its lowest net revenue over the past 12 months, though it remained profitable due to cost optimization efforts.
- Q3 will see significant marketing spend for Aliens: Fireteam Elite 2, and investments are expected to remain at similar levels to Q2, which could pressure near-term profitability despite the anticipated revenue rebound.
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Good morning, everyone, and welcome to EG7's second-quarter earnings call. My name is Robin Lundell, and I will be your moderator during this call. With us today, we have Ji Ham, CEO; and Fredrik Rueden, Deputy CEO and CFO, who will guide you through our Q2 earnings release.
We will round up this presentation with a Q&A session, and if you have any questions, you can email them to the Investor Relations e-mail.
With this, I hand it over to Ji.
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Thanks, Robin. Good morning and thank you all for joining us this morning. We will start with the highlights for the quarter and some updates on releases coming up for Q3 as well. And then Fredrick will go through detailed discussion relating to financial performance for the quarter. Then as Robin mentioned, we'll go through the Q&A session. So let's start with the
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