Late night revenue release highlights massive growth.
Enad Global 7 is an investment group that buys up a lot of companies, so it only makes sense that post-acquisitions their revenue stream has grown substantially. In Q3 2021 EG7 posted a revenue of 409 million SEK, or roughly $45 million USD. This composes a massive 400% increase over the same period last year. Net profit however put the company into the red with -28.2 million SEK. This puts EG7 at a 13.7 million SEK loss for the year so far, but hey. You gotta spend money to make money. And EG7 seems to be recuperating its investments pretty quickly.
At least that’s what my bookie keeps telling me.
According to CEO Ji Ham, the company decided in August to take a more decentralized approach to the various studios under its helm. If we’re understanding Ji Ham’s corporate gobbledygook correctly, he’s saying that the various companies, while under one corporate roof, will remain just as separate as they did before they were acquired by EG7. Granted Ham goes on to reference H1Z1 as one of the best known IP brands in the world.
The overall group management approach will be one of partnership with each business unit, finding a balance between the top-down group vision and the bottoms-up strategy specific for each business unit. All the business unit leadership and key stakeholders have fully welcomed this approach. While EG7 has been very successful in acquiring key businesses and assets, there are sufficient differences amongst the portfolio companies where “one size does not fit all” for a
uniform strategy or operational structure to be as effective. By adopting decentralization
and empowering each business unit leadership vs. “forcing” collaborations, we expect to drive more value creation for each unit and also for the overall group going forward.
The investor report continues to reference H1Z1 as a key brand, which is a lie given nobody is working on it. The only thing remotely resembling work that H1Z1 has received over the last year is a season 10 thumbnail that never got followed up on. Ham boasts 40 million registered players while ignoring that the company has abandoned both versions of the title.
Perhaps H1Z1 is one of the 10 “new and reinvestment” titles in EG7’s pipeline. I’m kidding of course, H1Z1 is not listed anywhere in EG7’s product pipeline. It does however include updates to Lord of the Rings Online and DC Universe Online in the “medium-term” future.
Interestingly, Daybreak’s specific contribution to EG7 was roughly $18.5 million in Q3.
The whole report can be found here.