Embracer Group has printed its monetary outcomes for the 9 months ending December 31, 2024, reporting declines throughout its PC/console and cell segments.
However, it skilled a internet revenue throughout its third quarter following the finished spin-off of tabletop writer Asmodee.
Here’s what you want to know:
The numbers:
For the three months ending December 31, 2024
Net sales: SEK 7.4 billion ($680 million), down 3% year-on-year, together with:
- PC/console video games: SEK 2.6 billion ($242 million), down 23% year-on-year
- Mobile video games: SEK 1.6 billion ($149 million), up 2% year-on-year
Net revenue: SEK 960 million ($89 million, in contrast to internet lack of SEK 1.8 billion / $167 million throughout the identical interval final 12 months)
For the 9 months ending December 31, 2024:
Net sales: SEK 16.9 billion ($1.5 billion), down 22% year-on-year together with:
- PC/console video games: SEK 7.3 billion ($679 million), down 35% year-on-year
- Mobile video games: SEK 4.4 billion ($409 million), down 3% year-on-year
Net loss: SEK 1.3 billion ($121 million, in contrast to internet lack of SEK 1.4 billion / $130 million throughout the identical interval final 12 months)
The highlights:
Embracer Group attributed its revenue of SEK 960 million ($89 million) throughout the third quarter to the spin-off of tabletop writer Asmodee.
The course of was accomplished on February 7, 2025, and Asmodee is now a individually listed firm buying and selling on Nasdaq Stockholm.
Coffee Stain & Friends is the final firm to develop into unbiased of the Embracer Group as it splits into three publicly listed companies. Middle-Earth Enterprises & Friends – which incorporates builders Warhorse Studios and Crystal Dynamics – will stay inside the Embracer Group as it’s at present listed.
This ongoing course of resulted from a nine-month restructuring program, which noticed the closure of Volition Games, Free Radical Design, and Campfire Cabal and the sale of Saber Interactive and Gearbox. More than 1,400 staff had been laid off in consequence.
By the tip of 2024, Embracer Group recorded a internet debt of SEK 3.2 billion ($298 million, in contrast to SEK 16.1 billion / $1.5 billion on the finish of 2023.
The variety of recreation builders working at Embracer Group in contrast to the identical interval final 12 months fell from 9,896 to 5,757. The complete headcount dropped from 12,695 to 7,873 staff.
Back to the monetary report, Embracer Group noticed a decline in its PC/console phase due to “limited new releases” and divestment of Saber and Gearbox being included compared figures.
Revenue from again catalogue titles, together with platform offers, dropped 14% to SEK 1.7 billion ($158.7 million), which was additionally impacted by the sales of Saber and Gearbox.
However, Embracer Group highlighted the success of Warhorse Studios’ Kingdom Come: Deliverance 2, which launched on February 4.
The action-role-playing recreation reached 1 million gamers in 24 hours and had over 250,000 concurrent gamers on Steam.
“It is our strong belief that the game will continue to generate substantial revenues over the coming years, highlighting the exceptional quality, immersion and appeal of Kingdom Come: Deliverance 2,” mentioned CEO Lars Wingefors.
“Warhorse Studios has a robust roadmap, including updates and new content over the next 12 months, ensuring an engaging and continuously evolving experience for the community.”
As a outcome, Embracer Group has an optimistic outlook for its This fall outcomes, which it attributes to not solely Kingdom Come: Deliverance 2, but additionally the discharge of Tripwire Interacitve’s Killing Floor 3 on March 25.
However, it famous that income “is expected to be slightly negatively impacted” by the discharge of Heart Machine’s Hyper Light Breaker, which was launched in early entry on January 14.
Elsewhere within the report, Embracer Group reported a slight progress in cell, which was attributed to a powerful vacation interval for DECA Games and CrazyLabs.
The latter noticed two new releases that drove “higher sales and user acquisition cost”. The agency mentioned cell is predicted to go “into growth mode” throughout H1 FY2025-26, pushed by CrazyLabs taking up the publishing rights of Bus Frenzy – Traffic Jam.
“Embracer today has an increased focus on IP development within PC/console and mobile,” mentioned Wingefors. “However, we recognise that there is still work to be done to further enhance our operational resilience and optimise our business for the future.”
He added: “Looking into the upcoming three monetary years, we at present have 10 AAA video games underneath growth, of which eight are from inside studios and two from exterior studios. This quantity doesn’t embrace the releases within the present quarter, or any initiatives financed by third events.
“However, we want to be clear that there is room to provide more time for development if deemed necessary to optimise both the quality and overall ROI, as we did with both Dead Island 2 and Kingdom Come: Deliverance 2.”
