Enad Global 7 AB (publ)

Good morning, everyone, and welcome to ED7 fourth quarter earnings release. My name is Fredrik Rudén. I'm deputy CEO and CFO in the company. And with me, I have my colleague and the company's CEO, Jihan. We will start with the presentation and then end with a Q&A session. And if you have any questions, please email our investor relation email address, and then we'll take that by end of this. So by that, I hand it over to you, Eugene.

Thanks, Frederik. Good morning. Thank you for joining us this morning. Let's go to the first slide.

We're pleased to report 437 million SEC of net revenue for the fourth quarter, a strong ending to our 2025. Net revenue declined 4.4% from the year before, excluding foreign exchange impact. 80 million SEC of adjusted EBITDA, which represented 18.2% margin. Some of the key highlights for the quarter included Daybreak delivering strong results with 11% net revenue growth year-over-year, and that's in local currency, excluding foreign exchange, and adjusted EBITDA, which came in 26% higher at 33.4 million SEC for the quarter. Paylia continues to perform well, 146% net revenue growth year-over-year, and now it is the largest revenue contributor for Daybreak's live game portfolio. and Big Blue Bubble, even though it's a performed product, Has some difficulty throughout the year. December was a great ending to the year with a 27% growth in MAU and 59% net revenue sequentially growing from November. And that momentum is also carrying into January, which is a great sign. And Fireshine, that revenue grew by 10% year over year. And Jurassic World Evolution 3, physical release in Q4, along with digital launches of Isla and Lens Island contributed to that revenue growth. Next slide, please. For the full year 2025, 1.6 million of net revenues. When you exclude foreign exchange, net revenue declined by 1.1%. Adjusted EBITDA came in at 254 million SAC and margin was at 15.6%. Some of the key achievements that we had throughout the year, Daybreak Portfolio has performed really well for the year, live titles, Lord of the Rings Online, Dungeons & Dragons Online, and DC Universe Online, all back to growing and demonstrating growth and that momentum carrying into 2026 as well. And Paleo, one of our main highlights for the year, a platform expansion into PlayStation and Xbox. with 70% year-over-year net revenue growth when you compare the second half of 2024 to second half of 2025. And Fireshine is continuing to grow with this digital publishing, a nice revenue growth for the year, and continuing to build out the back catalog with CoreKeeper being a main component of that growth in addition to the physical distribution business that continues to do well. Petrol is back to profitability, and along with petrol being back to profitability, all of our business units for the group is now cashflow positive, contributing toward growth. Next slide, please. Some of the headwinds that we encounter for the year, one of the main ones, foreign exchange impact, net revenue declined by 1.1% for the full year when you exclude foreign exchange. But without that, actually looking at it just from SEC, you're looking at 5.1% decline. So there's a significant distortion in our numbers with foreign exchange swings, which has been very volatile for 2025. So this is something that we are looking into being able to present our numbers in a way that presents it in a more comparable manner for investor base and shareholders to be able to understand it better. So looking at the local currency versus looking at You know, just looking at it from a SEC perspective, which has a lot of this distortion that's coming in with the volatility in the foreign exchanges, what we're aiming to do. So going forward, we will be looking at a better presentation of our numbers so that our investor base could understand that better. My Singing Monster is another one where we had lower user numbers throughout 2025. This was an unexpected decline in the springtime with a lower organic user acquisition that lasted until December when we had the trends reversed pretty meaningfully with a viral uptick that happened with a successful collaboration with a big influencer on TikTok. But this was unexpected, and that did impact our revenues and profitability to be lower for 2025. We're very much encouraged by the reversal that's happened in December and that momentum carrying into January. EverQuest IP infringement. So this is another one that's impacted our performance for Daybreak's portfolio of live service titles, especially EverQuest. Good news is that Daybreak did prevail here. We were able to win a preliminary injunction shutting down the competitive title that was infringing on EverQuest IP. But nonetheless, that event did have a negative impact on EverQuest performance for some time throughout 2025. There's a positive momentum with EverQuest with the injunction having been put in place. We're getting users back. EverQuest is performing well again. But once again, some amount of impact that resulted in Daybreak's numbers being lowered this year because of this situation. But for 2026, we do expect trends to normalize as we gain players back from this particular situation going forward. Cold Iron game release delay. So this one is a big one, right? So for 2025, originally targeted for release. This now is being delayed to Q3, 2026. So we're making great progress here. We do expect this game to be contributing significantly for our performance for 2026. But nonetheless, the delay is something that has impacted our 2025 performance to a certain extent. Piranha Games, net revenue declined by 45% year-over-year. This was due to MechWarrior 5 plans having released in Q4 2024, and no new game released for 2025 for Piranha. So when you look at the comparison of product and contents laid and pipeline for Piranha, comparing it 24 to 25, you see that decline in its net revenue and profitability. Otherwise, we had some restructuring in order to get businesses like petrol get back to profitability. We also had some significant impairment costs along with the Q4 that did impact our 2025 negatively on the profitability side. Next slide, please. Looking forward for 2026 and beyond. So Daybreak Momentum, we have encouraging momentum coming out of a number of our titles. DC Universe Online, Locho, and DDL all demonstrated nice growth for 2025. And once again, we do see that momentum carrying through 2026 as they're coming out of the gates quite strongly for 2026. Paley expansion, second annual expansion is something that we expect to release sometime late spring. So we're excited for Paley to continue to grow. 2025 was a pivotal year for the game. We expect the additional content that we could bring will continue to build on that momentum and get Paley at the profitability and become a meaningful contributor bigger than where it is today for the entire portfolio. Coal Diner's game launch, we're looking at Q3 2026. As mentioned, this is something that we have invested significantly in. We're quite optimistic about its potential performance and looking forward to its release in 2026. Fireshine's pipeline, Fireshine continues to grow with their indie digital publishing business. Ten titles currently forecasted for 2026, about 50% in digital, 50% in physical. And one of the key titles that they're seeing a lot of positive momentum around is Far Far West. So it's a brand new title that's already been announced. 400,000 players have come in to playtest the game, and their Steam wishlist is approaching 400,000 people. And based on that early signs, we are quite excited and also encouraged by the potential of positive performance from this title coming from Flyershine later this year. Long-term targets, growth targets that we are retracting at this point. We did announce our 2026 targets at Capital Markets Day in 2023. We are revisiting that given some of the delays with our product pipeline, including cold iron scheme. So we intend to schedule another Capital Markets Day coming in Q1 2027 to be able to talk about our updated strategy, our plans, uh targeted in and our expectations for what we want to deliver for the shareholder and shareholder value creation so that's coming up next year but for now we are retracting our 2023 announced capital markets day guidance for 2026. next slide please uh frederick over to you thank you g next slide please