Based on the re-evaluation of the development risk profile, size of investment, and the long-term product portfolio strategy for the group, the board of EG7 has decided to change the development priorities and reallocate resources within the group to focus on alternative long-term projects.

The company had planned to invest more than SEK 500 million in the Marvel project over the next three years. The company will now diversify this investment across multiple, smaller size projects within the group, including the previously announced major upgrades to The Lord of the Rings Online and DC Universe Online, and new game opportunities with our first party, original IPs.

Along with this reallocation, the company expects a write down of approximately SEK 230 million in project related assets in Q2 2022.

As one of the long-term investments, the change to the Marvel project plan will not impact near to medium term revenues and profits other than the balance sheet and P&L impact related to the write-down.