Enad Global 7 AB (publ)

Good morning and welcome to this Q1 earnings call with EG7. My name is Ludvig Andersen. I will be your moderator during this call. Together with me to present, we have the company's acting CEO, G. Hum, and Deputy CEO and CFO, Fredrik Ruden. After the presentation, we will have a short Q&A session, so please feel free to email your questions to the company's Investor Relations email. But now, without any further ado, over to you, G. Thanks, Ludvig.

Good morning, everyone. Thank you for joining us. Let us begin the presentation. Next slide, please. Here we have our key performance figures for Q1. Net revenue came in at 382 million SEC, adjusted EBITDA of 62 million SEC, and we ended the quarter with solid cash position of 467 million SEC. Q1 was a relatively quiet quarter for us. We had no major content or product releases planned. Also, no major mysigging monsters boost in our figures this quarter. Compared to Q1 2023, net revenue was lower by 33%. Adjusted EDTA margin came in at 16% this quarter, representing a variance of 17% year over year. MSM settling down at a lower level was the main difference. contributing to nearly 80% of the variance for both net revenue and adjusted EBITDA margin. Secondly, Piranha's latest DLC came out two months later this quarter, contributing to 16% of the variance in net revenues and 19% in adjusted EBITDA margin, and softer results for our service business units made up the remaining difference. Year-over-year comparison for the group is not always going to be straightforward. Our product release timing has variability, quarter to quarter, as well as year over year. As a result, aligning quarters for comparison is not always going to be appropriate. There will be peaks and valleys in our results along the way, subject to content and product pipeline, as illustrated in this quarter. We are aiming to get to the scale where we can smooth out our performance, but not there today, and it's going to take some time.

Next slide, please.