Our Equity Story
RenownEd live-game operator and middle-market publisheR
EG7 is operationally a solid cash-generative business. Operating cash flow over the LTM amounted to SEK 438 million.
The LTM EBITDA margin has been stable, above 20 percent over the past two years. The group aims to increase profitability with the successful launch of the new growth initiatives, with a targeted Adj EBITDA of SEK 1 billion by 2026, a CAGR of 28% for from 2023-26.
Over the last two years, EG7 has had CAGR of approximately 18 percent, during the same period the market is estimated to have declined 1 percent. EG7 launched new growth initiatives in 2023 with a target of SEK 3 billion in Net Revenue by 2026, which amount to a targeted CAGR of 16 percent from 2023-26, compared with the markets expected growth of 3 percent over the same period. These new growth initiatives are expected to initiate an accelerating growth starting from the second half of 2024 and extending into the subsequent years.
Over the past two years, EG7 has been highly focused on measures to reduce the overall risk and to increase the portfolios predictability. Several high risk or unpredictable game projects have been closed down and businesses attached with risks above the newly established risk profile have either been closed down or divested. By summer 2023, the group reached the desired risk profile and has, from the second half of 2023, started to initiate new growth initiatives. These investments are carefully selected and carried out, and their risk reward profile must line with the groups re-calibrated risk profile.
More than half of EG7’s revenues derive from a portfolio of 10 live games. These live games have dedicated development teams, who create content based on feedback and desires of their established and loyal player base and community. These games boast decades-long, proven track record of demonstrating resilience against shifts in market preferences and emerging competition. By maintaining a balanced investment approach into these assets, EG7 can keep the portfolio attractive for many years.
Strong Balance Sheet
A net cash position and no debt gives EG7 flexibilities. Between Q4 2021 and Q4 2022 risky non-core projects were written down to a value of approximately SEK 800 million. Providing EG7 with a clean balance sheet, and a significantly reduced risk of unpredictable write downs.
- Net Revenue target for 2026
SEK 3 billion
- Adjusted EBITDA target for 2026
SEK 1 billion
- Net cash position end of Q4 2023
SEK 481 million
- LTM Net Revenue Growth