Interim Report for the Period July 1, 2022, to September 30, 2022

July – September 2022 in Summary

  • Net Revenue amounted to SEK 444.5 (354.2) million, representing a 25.5 percent growth, an organic growth of 18.8 percent and 1.2 percent organic growth in local currencies.
  • EBITDA of SEK 123.2 (60.7) million, representing an increase of 103.1 percent.
  • Adjusted EBITDA of SEK 113.1 (71.2) million, corresponding to a growth of 58.9 percent and a 25.4 percent margin. The adjustment for non-recurring items affecting EBITDA in the third quarter was SEK -10.1 million, referring to royalty adjustments relating to previous quarters.
  • EBIT of SEK 59.3 (5.4) million.
  • Adjusted EBIT of SEK 49.1 (15.9) million.
  • Profit before tax amounted to SEK 49.6 (-26.9) million.
  • Earnings per share amounted SEK 1.35 (-0.32).
  • Cash flow from operations of SEK 131.3 (86.7) million.
  • The financial position continues to improve with SEK 654.2 million of cash and SEK 404.7 million of liabilities to credit institution, meaning a net cash position.

Note: Innova was divested on September 23, 2022 and is excluded from all actual and comparable figures unless otherwise stated. For further details please see note 5.

Comment from Ji Ham, Acting CEO of EG7:

EG7 delivered yet another strong quarter with Net Revenue of SEK 444.5 (354.2) million and Adjusted EBITDA of SEK 113.1 (71.2) million. The organic growth year-on-year was 18.8 percent, and in local currencies the organic growth amounted to 1.2 percent, representing the fourth consecutive quarter with positive organic growth. The strong performance generated a solid cash flow from operations of SEK 131.3 (86.7) million.

The group ended the quarter with further improved liquidity position with SEK 654.2 million of cash balance. The successful divestment of Innova contributed to an increase in the cash balance of SEK 185.3 million and a capital gain of SEK 91.3 million in the third quarter.

Both Game and Service segments continued their strong performance in Q3. Service segment delivered Net Revenue of SEK 149.7 (103.9) million, representing an organic growth of 44.1 percent. The Game segment continued its steady deliverance with a Net Revenue of SEK 294.8 (250.3) million, corresponding to a 17.8 percent increase compared to the same period last year.

EG7 operates a stable and profitable business meanwhile our financial position has been significantly improved. This demonstrates EG7’s operational strength and resilience even with the global economic volatility and we look forward to the coming year with confidence.

Net Revenue for October came in at SEK 148.1 million and based on the strong performance in the beginning of Q4 we expect to deliver around SEK 1.8 billion in Net Revenue for the full year 2022, with margins around new normalized levels as previously communicated.