Enad Global 7 Net Revenue Is Up Thanks To Daybreak And Lord Of The Rings Online
Enad Global 7 has released its latest quarterly investor report which shows steady growth for the Swedish video game holding company as a whole and its subsidiary Daybreak Game Studios.
According to the report, the Swedish video game holding company saw a 12% increase in its net revenue quarter-over-quarter at SEK 559 million (roughly $54 million). Its annual net revenue is also up by 27.1% year-over-year at SEK 1.87 billion ($ 183 million). In comparison, the company saw a 150% increase in its annual revenue in 2021 as a result of the COVID-19 lockdowns.
2022 also saw EG7 divest itself of Russian video game company Innova in light of the ongoing conflict between Ukraine and Russia.
While the recent numbers can’t quite compare to the EG7’s pandemic-boosted stats last year, it still shows a modicum of growth thanks to Daybreak, which contributed to nearly half of the company’s video game revenues. Big Blue Bubble’s viral mobile game My Singing Monsters also played a big part in generating revenue over the past quarter.
“Daybreak results represented the largest Net Revenue contribution amongst the group companies with a contribution of 35.6 percent and the second largest Adjusted EBITDA contribution of 23.3 percent for the period,” reads the report.
In the report, Daybreak Games’ CEO and EG7’s acting CEO Ji Ham also revealed the company’s plans to transition to a work-for-hire model in favor of working on in-house titles based on “unproven” and “subscale” IPs with a limited audience. Ham further talks about selling publishing rights and assets and using in-house developers to focus on in-development titles and get them ready for release.
It doesn’t look like any of the core development studios will be affected though as the report continues to tout long-standing IPs such as H1Z1.
Lord of the Rings Online and Dungeons and Dragons Online in particular were singled out for their recent transmedia popularity boosts due to the release of Amazon’s The Lord of the Rings: Rings of Power and Paramount’s Dungeons & Dragons: Honor Among Thieves feature film.
You can take a gander at the full Q4 2022 investor report on the Enad Global 7 official site.
