EG7 plans to reinvest Marvel development resources across multiple long-term projects

Report this content

EG7 had planned to invest more than SEK 500 million in the Marvel project over the next three years. The company will now diversify this investment across multiple projects within the group. The expected write down is proximately SEK 230 million in project related assets in Q2 2022.

EG7 today announced it will be discontinuing the development of the Marvel project at Daybreak Games. Based on the re-evaluation of the development risk profile, size of investment, and the long-term product portfolio strategy for the group, the board has decided to change the development priorities and reallocate resources within the group to focus on alternative long-term projects. The company had planned to invest more than SEK 500 million in the Marvel project over the next three years. The company will now diversify this investment across multiple, smaller size projects within the group, including the previously announced major upgrades to The Lord of the Rings Online and DC Universe Online, and new game opportunities with our first party, original IPs. Along with this reallocation, the company expects a write down of approximately SEK 230 million in project related assets in Q2 2022. As one of the long-term investments, the change to the Marvel project plan will not impact near to medium term revenues and profits other than the balance sheet and P&L impact related to the write-down.

FOR MORE INFORMATION, PLEASE CONTACT:

Ji Ham, Acting CEO
Phone: +46 70 065 07 53
ji@enadglobal7.com

Fredrik Rüdén, Deputy CEO and CFO
Phone: +46 733 117 262
fredrik.ruden@enadglobal7.com

ABOUT EG7

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 IPs, as well as acts 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 880 employees in 16 offices worldwide.

Nasdaq First North Growth Market Ticker Symbol: EG7

Certified Adviser: Eminova Fondkommission AB, Phone: +46 8 684 211 00

IMPORTANT INFORMATION

The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in EG7 in any jurisdiction, neither from EG7 nor from someone else.

Documents & Links