Enad Global 7 AB (EG7) reported a 25% year-over-year increase in net revenue for the second quarter of 2024, reaching 475 million SEK, driven by a 30% rise in constant currency terms. Adjusted EBITDA more than doubled to 99 million SEK from 37.5 million SEK a year earlier, expanding the margin by 1,100 basis points to 21%, as the company highlighted strong performance across its business units.
The Stockholm-based gaming group posted a net profit of 42 million SEK and earnings per share of 0.52 SEK. Operating cash flow totaled 120 million SEK, including a 26 million SEK benefit from the timing of developer royalties, while adjusted operating cash flow stood at 94 million SEK. Gross profit margin improved to 72.5%, with a free cash flow yield of 10%. The company ended the quarter with 344 million SEK in cash and net debt of 3.6 million SEK.
Revenue from live service and back-catalog titles rose 9.5% year-over-year to 325 million SEK, accounting for 68% of total revenue. Foreign exchange movements reduced quarterly revenue by 19.1 million SEK. Over the last 12 months, net revenue reached 1.6 billion SEK, with 1.3 billion SEK derived from predictable live service and back-catalog revenue.
Fireshine led growth with a 127% year-over-year revenue increase in local currency to 160 million SEK, driven by the launch of Far Far West, which sold over 1 million units in its first two weeks and holds a 96% positive rating on Steam. The unit’s adjusted EBITDA rose to 53 million SEK at a 33% margin. Big Blue Bubble reported a 21% local currency revenue increase to 71 million SEK, supported by My Singing Monsters, now in its 14th year, and influencer collaborations including content from T-Pain and an upcoming release with "Weird" Al Yankovic.
Piranha’s revenue grew 53% in local currency to 33.5 million SEK, with adjusted EBITDA of 13.1 million SEK at a 39% margin. The unit benefited from the May release of MechWarrior 5: Mercenaries DLC Chaos Reign, which contributed to a 15 million SEK annual cash flow improvement through cost reductions. Daybreak’s revenue remained flat at 185 million SEK, though adjusted EBITDA rose to 8 million SEK from 2 million SEK a year earlier, reflecting seasonal trends. Petrol returned to profitability on lower revenue following commercial optimization.
The company also highlighted key product milestones, including the July 15 launch of Denshattack! by Fireshine, which sold over 100,000 units and reached approximately 250,000 Game Pass players with a 98% positive Steam rating. The August 28 release of EverQuest Legends by Daybreak followed on August 18, while the acquisition of Cold Iron Studios, approved at the AGM, transferred its technology, IP contracts, and development team to Daybreak to resolve prior conflicts.
EG7’s stock has gained 47.8% year-to-date and 146% over the past year, trading between 0.84 SEK and 2.29 SEK over the last 52 weeks, with a beta of 1.37.
