Enad Global 7 AB (publ)

Q2 net revenue was SEK 475 million, up 25% year over year and 30% in constant currency. Adjusted EBITDA was SEK 99 million versus SEK 37.5 million last year, and the adjusted EBITDA margin improved to 21% from 10%, up 1,100 basis points. Net profit was SEK 42 million and EPS was SEK 0.52. Operating cash flow was SEK 120 million, or SEK 94 million excluding working-capital movement related to Fireshine royalties; Fredrik also said net debt was SEK 3.6 million and cash was SEK 344 million. Management did not give formal next-quarter or full-year financial guidance, but said Q3 should rebound from Daybreak’s seasonal low and that net revenue is expected to continue improving for the rest of the year with Aliens releasing in Q3. They also said Fireshine, Piranha, Big Blue Bubble, and Daybreak all grew in local currency, while Petrol returned to profitability and contributed positively.

Ji Ham framed the quarter as a broad-based operational step-up, emphasizing that all five businesses were performing well and that each business unit improved EBITDA year over year. He highlighted Fireshine as an emerging indie publishing leader, pointing to strong ratings and sales for Far Far West and Denshattack!, and said back-catalog strength should support long-term cash flow. His tone was upbeat and confident, especially around Q3 releases and the broader portfolio’s momentum.

Fredrik Ruden focused on the quality of growth, noting SEK 475 million of net revenue, 30% FX-neutral organic growth, and an LTM revenue base of SEK 1.6 billion with an 18% adjusted EBITDA margin. He said the more predictable live-service and back-catalog portfolio generated SEK 325 million in the quarter and represented SEK 1.3 billion of the LTM total. He also pointed to solid cash generation: operating cash flow of SEK 121 million, SEK 64 million of investment, cash of SEK 344 million, unutilized credit of SEK 100 million, and a bond frame of SEK 1 billion.

Analysts asked about Daybreak’s weaker sequential EBITDA, and management said Q2 is typically the seasonal low because Q4 revenue rolls into Q1, Q2 content is lighter, and some Palia-related spend and revenue recognition slip into Q3. They were also pressed on Aliens wishlists and platform mix; management declined to disclose the wishlist number but said it is tracking better than the first game, and said Steam/PC should remain the biggest platform. On EverQuest Legends, management said it should contribute nicely to Q3 but may partially cannibalize EQI/EQII, though the combined franchise should still be higher than before the launch. They also explained that Cold Iron should add technology, gameplay expertise, and future franchise optionality, while Big Blue Bubble will keep most of its effort on My Singing Monsters while exploring new ideas.