- The company is successfully implementing a restructure strategy to offset revenue drops in all divisions
- Despite the challenges, CEO Lars Wingefors remains optimistic about the company’s immediate prospects
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The latest interim report for Embracer’s Q1 of 2024 reveals a company that is gradually recovering from a turbulent period. While progress is evident, the path to full profitability still lies ahead.
In the first quarter of 2024, net sales dropped to SEK 7,933 million from 10,450 million in the previous year, marking a 24% decline. Across all four reporting divisions, there were decreases, with each division showing negative figures compared to the previous year.
A significant portion of the decline can be attributed to a decrease in contributions from PC and console games, dropping by 34% to SEK 2,656 million. Additionally, the Entertainment & Services division saw a substantial 54% decline to SEK 848 million.
Resilience in Mobile and Tabletop
The company’s mobile and tabletop games fared better, with minimal drops of 3% and 5% respectively.
Embracer’s official release puts a positive spin on these challenging numbers, highlighting improved cash flow, reduced net debt, and anticipated resilience in PC and console games.
CEO Lars Wingefors expressed confidence in the company’s direction, stating, “We are on track with our plans for FY 2024/25, showing year-on-year profitability growth in the Mobile and Tabletop segments.”
“The transformation of our PC/Console business continues, and the pipeline of games looks solid.”
Lars Wingefors, CEO, Embracer
Continued Progress
Wingefors emphasized, “The transformation of our PC/Console business continues, and the pipeline of games looks solid. We still expect to release completed games worth SEK 3.9 billion this financial year.”
He also mentioned, “Our highly anticipated game, Kingdom Come: Deliverance II [on PC and console], is confirmed for global release on February 11, 2025.”
Wingefors assured stakeholders that the company is making progress with its separation into three publicly listed entities, with Asmodee planning a capital markets day before its spin-off.
Despite the decline in net sales, Wingefors remains optimistic, attributing it to tough comparisons and fewer product releases. He reiterated the expectation of around SEK 3.9 billion in game development value for the year.
For more detailed information, you can access the full report here.
