Lods of emone. Probably.
EG7 posted their Q4 results this week and the money is flowing like a delicious melted brie cheese on a fondue fountain. According to the results posted on their website, EG7 raked in 573.1 million SEK in Q4, a 193% growth over the same period last year. Accumulated income for the year ran up to 1.67 billion SEK. Daybreak’s contribution to the quarterly income ran up to 172.4 million SEK.
Incidentally this quarter’s income statement did not include Magic: The Gathering Online, which EG7 got its hands on last year. The deal with that did not close until mid-January, however the game is expected to pull in 90-100 million SEK. EG7 plans to use Daybreak to modernize and improve MtGO and expects the game will pay itself off by the end of 2023.
In his statement, CEO Ji Ham specifically mentioned MechWarrior 5 underperforming.
In our previous report, we showed strong momentum in the Service-Segment entering the fourth quarter. That segment delivered above our expectations in the fourth quarter. Meanwhile, the Game-Segment continued to deliver strong performance. Strong seasonal performance for the Game Segment was partially offset by lower revenues from MechWarrior 5 in Q4 as expected compared to Q3.
Ji Ham’s statement may also be the first time Daybreak has ever acknowledged its ownership of Lord of the Rings Online and Dungeons & Dragons Online, its status of which the company has waffled on since taking over publishing.
Lord of the Rings Online and Dungeons & Dragons Online were acquired in 2016 from WB Games. Since then, these games have contributed over SEK 900 million in revenues.
H1Z1 continues to be referenced as a “key brand” despite EG7 having completely abandoned the property.
H1Z1, the very first battle royale game that was credited as one of the inspirations for Fortnite, with over 40 million life-to-date (LTD) registrations.