Interim Report for the Period October 1, 2020 to December 31, 2020

October – December 2020 in Summary

• Total revenue amounted to SEK 210.3 million. Net revenue amounted to SEK 195.9 million which represents an increase of 245% compared to the same period last year.
• EBITDA amounted to SEK -4.7 million.
• Adjusted EBITDA amounted to SEK 8.2 million.
• The cash balance amounted to SEK 1,087.5 million.
• Net debt amounted to SEK -568.1 million.
• Equity amounted to SEK 3,137.4 million.
• Earnings per share amounted to SEK -1.14.

January – December 2020 in Summary Pro-Forma*

• Total revenue amounted to SEK 1,721 million.
• Adjusted EBITDA amounted to SEK 512 million.

Significant events during the fourth quarter 2020

• An extra general meeting is held where it is decided to authorize the board to decide on a new issue of shares, warrants and/or convertibles.
• EG7 completes the acquisition of Big Blue Bubble.
• EG7 enters into an agreement to acquire Canada based game developer Piranha Games, most famous for MechWarrior, for approximately SEK 207 million.
• EG7 enters into an agreement to acquire US based game developer Daybreak Game Company, most famous for EverQuest, Lord of the Rings and Dungeons & Dragons, for approximately SEK 2.5 billion.
• EG7 successfully raises approximately SEK 1.7 billion by issuing 20,731,707 shares.
• An extra general meeting is held where it is resolved to approve the board of directors' resolution to issue a maximum of 10,516,257 shares.
• EG7 completes the acquisition of Daybreak Game Company.
• EG7 refinances its bond, thereby decreasing the annual interest rate from 12 to approximately 3 percent.

Significant events after the fourth quarter 2020

• EG7 transitions from the Swedish accounting principle K3 to IFRS on January 1, 2021 which is expected to increase the EBIT with approximately SEK 600 million annually.

Comment from Robin Flodin, CEO of EG7:

“The fourth quarter of 2020 has been immensely busy for us at EG7. We have grown our net sales 245 percent compared to the same period the previous year meanwhile having acquired Daybreak Game Company and Piranha Games, the former of which completely transforms the group with its high profitability and well-known IP. This has resulted in a group that on a pro forma basis for 2020 generated SEK 1.7 billion revenue and adjusted EBITDA of SEK 512 million. The above creates a beneficial situation going into 2021 for which I am incredibly excited.”

FOR MORE INFORMATION, PLEASE CONTACT:

Robin Flodin, CEO

Phone: +46 70 477 06 34

robin@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 400+ game developers and develops its own original IP:s, as well as act as consultants to other publishers around the world through its game development divisions Daybreak 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 department Sold Out holds expertise in both physical and digital publishing and has previously worked with Team 17, Rebellion and Frontier Developments. EG7 is headquartered in Stockholm with 600 employees in 12 offices worldwide.

Nasdaq First North Growth Market Ticker Symbol: EG7

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

IMPORTANT INFORMATION

This information is information that Enad Global 7 AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on February 25, 2021 at 06:30 CET.

*: Financial figures as if the companies acquired during 2020 are included in the group during the period. Note that the pro forma figures have not been audited by the company's auditor and should not be considered as an indication of the Group's performance for the coming 12 months. The acquisition of Piranha Games has not been completed as per the publishing date of this report.

Tags: