Enad Global 7 AB (publ) (EG7) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to EG7's third quarter earnings release. My name is Fredrik Rudén. I'm deputy CEO and CFO and with me in this call I have my colleague and the company CEO Yi Han. We will start with the presentation and then end with the Q&A session. I hand it over to you Yi. Thanks Fredrik. Thank you for all joining us. Let's go to the first slide. For Q3, net revenue came in at $355 million a sec, with adjusted EBITDA coming in at $63 million, representing 18% margin. Year-over-year net revenue declined by 24%. Without the adverse FX effect, year-over-year decline was lower at 16%. Currency movement has been exaggerating the decline throughout this year, unfortunately, because of the significant volatility with the exchange rate over the last 12 months. Next slide, please. Some notable business unit updates here, starting with BigBlueBubble. Results came in below expectations, a tough quarter for them. Net revenue declined by 27% in local currency and 34% in SEC. Reasons for the decline was primarily driven by anniversary content for this year performing worse than last year. Active player base declined with lower user engagement and acquisition for the quarter, with the anniversary content underperforming. Core in-game KPIs continue to remain steady and healthy. However, the underperformance appears to be limited to the user acquisition funnel. The team is actively working to improve user acquisition to return to prior higher levels. As for Daybreak, net revenue declined by 7% in local currency and 15% in sector. For accounting and reporting, net revenue shows a decline, but sales actually demonstrated growth. We tracked another KPI called gross revenue in local currency, which actually increased year over year. Gross revenue is before platform fees and excluding ...