Enad Global 7 AB (publ) (EG7) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Five, four, three, two, one. Good morning. Welcome, everyone, to ED7's first quarter earnings release. My name is Fredrik Rutén, Deputy CEO and CFO. And with me, I have my colleague and the company CEO, Ji Ham. We will start with a presentation and then end with a Q&A session. And if you have any questions, please email our investor relation email address. By that, I hand it over to Yuji. Thanks, Frederick. Good morning, everyone. Thank you for joining us this morning. Let's go to the first slide. We'll start off with our first quarter key performance figures here. For the first quarter, we came in with 345 million SEC of net revenues. That's down 24% in SEC year over year, 13% organic in local currencies. Adjusted EBITDA came in at 51 million SEC, down 31% compared to last year. And EBITDA margin came in at 14.8%. That's 140 basis points lower than last year's numbers. Net profit-wise, we're returning to profitability with 21 million SEC of net profit compared to loss of 18.5 million SEC last year. And operating cash flow strong with five times the multiple compared to last year, coming in at close to 90 million SEC. and EPS on a diluted basis of 0.24 sec. Next slide, please. So here we showcase the net revenue bridge from last year to this year. So we wanted to demonstrate some of the key components that contributed to that decline. Underlying business is stable, but there's two major components that reduced our revenue for year over year. The first part of it being a significant FX impact. We had 50 million SEC of impact, about 11% of our net revenue contributing to our decline. And also Fireshine. So Fireshine, one of our publishing businesses last year in Q1 2025 had three physical titles that it released, which contributed 96 million SEC. That revenue is not pr...