Our Equity Story

RenownEd live-game operator and middle-market publisheR

Cash Generating
EG7 is operationally a solid cash-generative business. Operating cash flow over the LTM (Q2 2024) amounted to SEK 176 million. 

Profitability
Solid LTM EBITDA margin. 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% from 2023-26.

Growth
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.

Risk Management
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.  

Predictability
More than half of EG7’s revenues derive from a portfolio of 11 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.