Interim Report for the Period April 1, 2023, to June 30, 2023

April – June 2023 in Summary

  • Net Revenue of SEK 482.9 (462.8) million, representing 4.3 percent growth.
  • EBITDA of SEK 92.3 (88.3) million.
  • Adjusted EBITDA of SEK 113.3 (84.3) million, corresponding to 34.4 percent growth and 23.5 percent margin. Adjustments for non-recurring items totaled SEK 21.0 million, including SEK 20.3 million in restructuring costs for the closing of AntiMatter Games.
  • EBIT of SEK 25.1 (-184.7) million.
  • Adjusted EBIT of SEK 60.0 (32.9) million.
  • Profit before tax of SEK 15.5 (-195.6) million.
  • Earnings per share of SEK 0.02 (-14.34).
  • Adjusted earnings per share of SEK 0.33 (-0.47).
  • Cash flows from operations of SEK 53.8 (63.5) million.
  • Cash balance of SEK 454.0 million with no bank debt at the group level.
  • A formal process to close AntiMatter Games was initiated during the quarter. This process is now completed, resulting in annual cost savings of approximately SEK 50 million.

Note: Innova was divested in September 2022 and was reported as discontinued operations in Q2 2022

Comment from Ji Ham, Acting CEO of EG7:

We are pleased to report solid results for the second quarter with Net Revenue of SEK 482.9 (462.8) million, representing 4.3 percent growth year-over-year. Adjusted EBITDA came in at SEK 113.3 (84.3) million, 34.4 percent increase year-over-year and 23.5 percent margin. There was a sequential decline from Q1 to Q2 but as explained previously, this is ordinary course and due to the seasonal nature of our business with the second quarter representing our low season each year.

The Game Segment continued its strong performance, delivering Net Revenue of SEK 369.3 (270.4) million, representing 36.6 percent growth year-over-year. Big Blue Bubble again was a big contributor with Net Revenue of SEK 144.4 (43.2) million and Adjusted EBITDA of SEK 85.8 (22.8) million for the period. While December 2022 represented the peak, My Singing Monsters continues to deliver higher than expected engagement levels.

The Service Segment results were softer for the period. Net Revenue came in at SEK 113.6 (192.4) million, corresponding to 40.9 percent decline year-over-year. The decline was mainly due to the difference in the timing of product releases. For the second half, we expect an improvement in performance with a more robust product line up.

Overall, the group continues to deliver healthy results above expectations, benefitting from its balanced portfolio. For the full year, we reiterate our previously communicated performance targets.