EG7 Updates the Strategic Focus on Management Level to Facilitate Growth
The board of Enad Global 7 AB (publ) (“EG7” or the “Company”) wants to inform its shareholders and other interested parties that it has decided to update its strategic focus on the management level of EG7.
The change entails having a more decentralized approach towards its subsidiaries, as opposed to a more integrated approach that was pursued by the previous management in the last six months.
The management level of EG7 has instead been instructed to focus more on supporting growth of its subsidiaries, financial reporting and acquisitions. The approach also involves setting up structures for the subsidiaries to collaborate to take advantage of the strengths being part of a larger group albeit in a decentralized manner.
The rationale for the change is to support more entrepreneurial initiatives, higher profit margins and higher growth both by acquisitions and supporting investments in the individual subsidiaries. Historically, this has been a successful strategy from EG7 and adopting this strategy more aggressively will maximize the shareholder value potential.
The implications of the strategy in the near-term can be summarized by the following three points:
- Changes in current management: Multiple changes have been implemented on management level in EG7, including changes on CEO level. To be more specific, starting from last week and up until today, and excluding the finance team, transition of 10 employees at EG7 group level has been completed.
- Increased focus on acquisitions: In order to accelerate growth, EG7’s new management has received a mandate to increase resources on sourcing acquisitions.
- Increased focus on growth by focus on game investments: EG7 has the ambition to grow its business by increasing the available funds to the subsidiaries to make further investments into the game pipeline.
The changes in management will have short-term costs of approximately SEK 5 million that will be taken in the third quarter 2021 but will save the company approximately SEK 10 million on an annual basis.
FOR MORE INFORMATION, PLEASE CONTACT:
Ji Ham, Acting CEO
Phone: +46 70 065 07 53
Alexander Albedj, Chairman of the Board
Phone: +46 76 221 30 75
EG7 is a group of companies within the gaming industry that develops, markets, publishes and distributes PC, console and mobile games to the global gaming market. The company employs 470+ game developers and develops its own original IP:s, as well as act as consultants to other publishers around the world through its game development divisions Daybreak Games, Piranha Games, Toadman Studios, Big Blue Bubble and Antimatter Games. In addition, the group's marketing department Petrol has contributed to the release of 1,500+ titles, of which many are world famous brands such as Call of Duty, Destiny, Dark Souls and Rage. The group's publishing and distribution departments Innova and Sold Out hold expertise in both physical and digital publishing. EG7 is headquartered in Stockholm with approximately 845 employees in 15 offices worldwide.
Nasdaq First North Growth Market Ticker Symbol: EG7
Certified Adviser: Eminova Fondkommission AB, Phone: +46 8 684 211 00
This information is information that Enad Global 7 AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on September 7, 2021 at 7:00 am CEST.