If you can pull your eyes away from the Activision-Blizzard/NetEase trainwreck that unfolded overnight, then we’ve got a blast of new financial news for you in the form of EG7’s Q3 2022 investor report. Sweden-based EG7, of course, is the company that owns (and has basically been taken over by leadership from) Daybreak Game Studio.
EG7 has been reporting continued growth all year, and it hasn’t slowed down yet; it ended the July through September quarter with 444.5M SEK, a jump of 25.5% when compared to this quarter last year.
Ji Ham, the Daybreak executive who’s been EG7’s Acting CEO since the ouster of Robin Flodin last year, specifically highlights the completed sale of Russia-based Innova (“[f]inally out of Russia and no more geopolitical risk exposure”), the completed transition of Magic Online to Daybreak, and “strong growth in [the] active player base” of Lord of the Rings Online owing to Amazon’s Rings of Power – an 11% boost in monthly active players compared to 2021 for the 2007 MMORPG.
Daybreak itself accounted for 216M SEK of the company’s 444.5M SEK overall revenues and 73% of the games segment all on its own.
“For Q3 2022, Daybreak contributed Net Revenue of SEK 216.2 (169.7) million, corresponding to 27.4 percent growth and Adjusted EBITDA amounted to SEK 64.8 (63.7) million. The adjusted EBITDA margin amounted to 29.9 (37.5) percent. The unfavorable comparison against the pandemic boosted result in 2021 remained throughout the quarter, and the growth year-on-year is largely driven by Magic Online and a FX tailwind. September marked an increase for The Lord of the Ring Online as a direct benefit of Amazon TV series launch, and the games 10th expansion ‘Before the Shadows’ was released November 15. Daybreak results represented the largest contribution amongst the group companies with Net Revenue contribution of 48.6 percent and Adjusted EBITDA contribution of 57.3 percent for the period.”
Contrary to past reports, this one doesn’t gush too much about in-development titles and updates for existing games, nor does it mention the double expansions due for the EverQuest franchise in Q4, though it does run down a list of key first-party and third-party brands, including EverQuest, H1Z1, DC Comics, LOTR, D&D, and Magic the Gathering. “We currently have a strong pipeline of new and reinvestment projects underway
topped with newly signed Work-for-Hire (WFH) deals to drive continuing growth for the group,” Ham notes.
• EG7 Q1 2024: Daybreak still mum on PlanetSide 2, new H1Z1 game hires lead designer
• EG7’s 2023 annual report claims Daybreak and SSG collectively count 264 staffers
• EG7 transfers PlanetSide 2 development from Daybreak to Toadman, posts 2024 roadmap
• It looks like the ‘noncore IP’ Daybreak sold for $5.9M is PlanetSide after all
• EG7 Q4 2023: DCUO’s delayed latest-gen console launch hurt Daybreak’s revenues last quarter
• Daybreak’s DC Universe Online studio Dimensional Ink is the latest games team hit with layoffs
• EG7 Q3 2023: Daybreak’s MMO revenues dip ahead of Q4 expansion deluge
• EG7 and Daybreak: DCUO’s volatility, EverQuest’s stability, Cold Iron’s new game, LOTRO’s canceled remaster
• EG7 hopes to develop a new EverQuest MMORPG (EverQuest 3?) for 2028 after years of rumors
• EG7 Q2 2023: Daybreak’s MMORPGs are ‘predictably stable’
• EG7 Q1 2023: EG7 pulled in a record $54M last quarter, and Daybreak is a huge chunk of it
• EG7 Q4 2022: Revenues are up thanks to mobile as LOTRO sees ‘mainstream resurgence’
• EG7 Q3 2022: LOTRO’s monthly active players are up 11% compared to last year
• EG7 Q2 2022: Daybreak’s Jason Epstein is now chairman of the board
• EG7 Q1 2022 financials: EG7 has canceled Daybreak’s Marvel MMORPG
• Daybreak’s EG7 intends to sell Innova subsidiary and relocate Toadman Interactive studio in a pull-out from Russia
• EG7 Q4 2021: EG7 and Daybreak post huge revenues, bank future on MTGO, LOTRO
• Lord of the Rings gaming rights are going up for sale – what will this mean for LOTRO?
• Daybreak assumes publisher role on Wizards of the Coast’s Magic: The Gathering Online
• LOTRO Legendarium: OK, let’s talk about Lord of the Rings Online on console
• EG7 Q3 2021: Daybreak revives Marvel MMORPG, still promising console and gfx upgrade for LOTRO
• EG7’s acting CEO Ji Ham discusses investment in existing Daybreak games and support of a ‘AAA project’
• EG7 Q2 2021: What the heck is going on at EG7 and Daybreak and who the heck owns Cold Iron
• Daybreak CEO Ji Ham takes over as Enad Global 7’s acting CEO
• EG7 Q1 2021: The Daybreak MMOs are headed to the 4Game platform
• EG7 addresses the Daybreak buyout, says EG7 is ‘evaluating’ H1Z1 and Just Survive
• Daybreak’s owner Enad Global 7 acquires MMORPG publisher Innova for $109M
• Daybreak’s $300M sale to EG7 is all wrapped up just in time for Christmas
• Console LOTRO and DCUO’s huge playerbase: Everything we just learned about Daybreak thanks to EG7
• Daybreak has been sold – again – this time to EG7 Global for $300M