Enad Global 7 FY2023 Q3 Earnings Release
Download PDFNov, 2023 INVESTOR PRESENTATION
Q3 2023 / JUL -SEP 2023
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ENAD GLOBAL 7 | COMPANY PRESENTATION
Q3 2023
Key Performance Figures
Net Revenues
SEK 517 mm
16% YoY Organic Growth
Adjusted EBITDA
SEK 141 mm
27% Margin
Cash
SEK 473 mm
Q2 + SEK 22 mm
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ENAD GLOBAL 7 | COMPANY PRESENTATION
Q3 Group
Highlights
• Capital markets day hosted on Sep 20
> Update to business strategy and plan
> Shareholder capital return program
> Uplisting to the main exchange in 2024
• Publishing deal signed with Cold Iron
> New multiplayer shooter based on a major global IP for
release in 2025
> First title initiating the middle market publishing business
• MechWarrior 5: Clans Announced
> An exciting new entry for MechWarrior franchise
> Target release second half of 2024
> Another core franchise for the plan
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ENAD GLOBAL 7 | COMPANY PRESENTATION
Business Unit Performance Commentary
• Another great quarter
• MSM trending down as expected
• Still 157% higher Net Revenues than 3Q22
• Softer than expected results YTD
> About 15% lower YTD Net Revenue compared to last year
• DCUO and LOTRO have performed under expectations
• Already on -going efforts to stabilize and reverse trends
> DCUO ready for the latest gen consoles shortly
> LOTRO expansion just released with solid performance
• EQ and MTGO with solid performanc e
> Exciting plans for EQ and EQ2’s 25 th and 20 th anniversary in 2024
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ENAD GLOBAL 7 | COMPANY PRESENTATION
Business Unit Performance Commentary
• Solid performance YTD with MechWarrior 5 DLCs delivering good results
> DLC 5 released in September
> 2 more planned for next year
• WFH contract is nicely profitable but the ramp has been slower than
expected
• Continuing ramp towards profitability
• Cold Iron contract contributing nicely
• Expect to be breakeven by the yearend and crossing over to
profitability from early 2024
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ENAD GLOBAL 7 | COMPANY PRESENTATION
Business Unit Performance Commentary
• Good volume of physical releases during the quarter
> Highlights: Lies of P, Warhammer 40k Darktide , F1 Manager
and etc.
• On the digital publishing front, new content updates for Core Keeper
and Shadows of Doubt
• A softer year for Petrol YTD
• Still the “go to shop” for the many of the top games, including
> Call of Duty, Diablo 4, Star Wars Outlaws, Remnant 2 and Lies
of P
• But overall, lower volume this year, which also has impacted its
margins negatively
FINANCIAL
DISCUSSION
COMPANY PRESENTATION
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ENAD GLOBAL 7 | COMPANY PRESENTATION
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1 806 1 866
2 038 2 058 2 131
396 483 566 595 628
22% 26% 28% 29% 29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
–
500
1 000
1 500
2 000
2 500
3Q22 4Q22 1Q23 2Q23 3Q23
LTM
Net Revenue Adjusted EBITDA Adj EBITDA Margin
Net Revenue and Adjusted EBITDA
444
559 572
483 517
113
179 190 113 141 25%
32% 33%
23% 27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
–
100
200
300
400
500
600
700
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R LY
Net Revenue Adjusted EBITDA Adj EBITDA Margin
ENAD GLOBAL 7 | COMPANY PRESENTATION
Net Revenue and
Adjusted EBITDA Mix
(MSEK)
9
Daybreak Big Blue Bubble
216 199 201 190 181
65
42 52 48
34
30%
21%
26%
25% 19%
0%
20%
40%
60%
80%
100%
–
50
100
150
200
250
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
48
193
218
144
123
30
116 133
86 88
63% 60% 61% 59%
71%
0%
20%
40%
60%
80%
100%
–
50
100
150
200
250
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
Q3 Net Revenue Contribution
Daybreak 181 35%
Big Blue Bubble 123 24%
Rest of the group 213 41%
Group total 517 100%
Q3 Adj EBITDA Contribution
Daybreak 34 24%
Big Blue Bubble 88 62%
Rest of the group 19 13%
Group total 141 100%
ENAD GLOBAL 7 | COMPANY PRESENTATION
Net Revenue and
Adjusted EBITDA Mix
(MSEK)
10 *AntiMatter contributed positively to Segment Toadman with SEK 3.1million due to local government grants during the quarter.
Piranha Toadman (+AMG)
25 25
51
24 28
9
15 23
6 8
36%
60%
46%
25% 30%
0%
20%
40%
60%
80%
100%
–
10
20
30
40
50
60
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
Q3 Net Revenue Contribution
Piranha 28 5%
Toadman 14 3%
Rest of the group 475 92%
Group total 517 100%
Q3 Adj EBITDA Contribution
Piranha 8 6%
Toadman -2 -1%
Rest of the group 135 96%
Group total 141 100%
5 6 6
11
14
-5 -5
-14 -12
-2 -97% -91%
-248%
-113%
-17%
-300%
-200%
-100%
0%
100%
200%
300%
( 20)
( 15)
( 10)
( 5)
–
5
10
15
20
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
ENAD GLOBAL 7 | COMPANY PRESENTATION
Net Revenue and
Adjusted EBITDA Mix
(MSEK)
11 *Excludes results for Innova, which was divested in 3Q22.
Fireshine Petrol
83 77
48
78
120
9 10 2 3 19
11% 13% 4% 4% 16%
0%
20%
40%
60%
80%
100%
–
20
40
60
80
100
120
140
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
66 59
49
36
51
10 3 6
-9
2
15%
6% 12%
-25%
4%
-40%
-20%
0%
20%
40%
60%
80%
100%
( 20)
( 10)
–
10
20
30
40
50
60
70
80
3Q22 4Q22 1Q23 2Q23 3Q23
Q U A R T E R L Y
Net Revenue Adjusted EBITDA Adj EBITDA Margin
Q3 Net Revenue Contribution
Fireshine 120 23%
Petrol 51 10%
Rest of the group 346 67%
Group total 517 100%
Q3 Adj EBITDA Contribution
Fireshine 19 13%
Petrol 2 1%
Rest of the group 120 85%
Group total 141 100%
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(MSEK)
Q3 Cash Flow
Cash OB 454
Operation +112
Investing -83
Financing -7
Delta Cash +22
Currency fluctuations in liquidity -4
Cash CB 473
Continues to strengthen
our net cash position
499
187
88 93 114
654
408 453 454 473
-155 -220
-365 -361 -358
-0,4
-0,5
-0,6 -0,6 -0,6
– 600
– 400
– 200
–
200
400
600
800
Q3-2022 A Q4-2022 A Q1-2023 A Q2-2023 A Q3-2023 A
Cash debt Cash at hand Net debt Full Leverage
Net Debt to EBITDA Ratio and Cash
ENAD GLOBAL 7 | COMPANY PRESENTATION
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(MSEK)
Based on continued trends
• Expect to come in around our
full year guidance
• Probably softer growth 2024,
compared to first nine months
2023
• MSM impact
> Significantly boosted performance temporarily
> Will start to see tougher comps from Q4 and onwards
> The new normal is expected to be significantly higher than the peak levels
Figures in Perspective
ENAD GLOBAL 7 | COMPANY PRESENTATION
1 806 1 866
2 038 2 058 2 131
396 483 566 595 628
22% 26% 28% 29% 29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
–
500
1 000
1 500
2 000
2 500
3Q22 4Q22 1Q23 2Q23 3Q23
LTM
Net Revenue Adjusted EBITDA Adj EBITDA Margin
SUMMARY
COMPANY PRESENTATION
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Summary
ENAD GLOBAL 7 | COMPANY PRESENTATION
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• Solid profitability and growth
• Maximizing cash flows with existing business
• Investing selectively in our long -term growth plan
• EGM being scheduled for December to obtain approval for the shareholder capital
return program
• Executing against uplisting to the main market for 2024
Q&A
COMPANY PRESENTATION
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