Despite facing challenges, the company reported a notable increase in net sales, reaching SEK 12,050 million, marking a 4% growth compared to the same period in 2022.
In a detailed breakdown of the net sales by operating segment, several trends emerged:
- PC/Console Games: Experienced a decrease of 5%, amounting to SEK 3,379 million.
- Mobile Games: Witnessed a 4% increase, totaling SEK 1,642 million.
- Tabletop Games: Showed strong growth, rising by 7% to SEK 4,425 million.
- Entertainment & Services: Demonstrated significant growth of 12%, reaching SEK 2,604 million.
- Embracer Group also disclosed its earnings before interest and taxes (EBIT), which amounted to SEK 273 million, with an EBIT margin of 2%. Adjusted EBIT increased by 7% to SEK 2,150 million, with an Adjusted EBIT margin of 18%.
The company addressed items affecting comparability (IAC), which amounted to SEK -641 million, primarily related to a previously announced restructuring program. Despite these challenges, cash flow from operating activities reached SEK 2,477 million.
Looking at the first nine months of the fiscal year (April-December 2023), Embracer Group reported a notable increase in net sales, rising by 18% to SEK 33,331 million. The Tabletop Games segment showed the most substantial growth, with a 16% increase to SEK 11,679 million.
However, the company faced challenges in its PC/Console Games segment, where sales declined by 9% organically. Despite this, Embracer Group remains optimistic about its future performance, reiterating its forecast for the financial year 2023/24 of an Adjusted EBIT between SEK 7,000 – 9,000 million.
Embracer Group CEO Lars Wingefors commented:
“Embracer Group’s CEO highlighted the company’s diversity and strong performance in Q3, driven by successful titles such as Asmodee and Middle-earth Enterprises. Despite challenges, the company is on track to achieving its financial targets and completing its restructuring program.”
The CEO emphasized the importance of creating a solid foundation for the future, with investments focused on established IPs and studios. Embracer Group remains committed to maximizing shareholder value and demonstrating the earnings potential of its assets over time.
The release of the Interim Report provides stakeholders with valuable insights into Embracer Group’s financial performance and strategic direction as it continues to navigate the evolving landscape of the video game industry.
NEXT: A look into Voodoo’s acquisition and transition strategy
