Sweden · Delayed Price · Currency is SEK Embracer Group AB Earnings Call Transcripts
Fiscal Year 2026
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Q3 net sales reached SEK 5.2 billion, down 8% organically year-over-year, but Adjusted EBIT of SEK 528 million exceeded expectations. Strong catalog performance, especially from core IPs, offset declines in new releases and mobile. Full-year Adjusted EBIT guidance raised to at least SEK 750 million.
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Q2 saw a 19% year-over-year sales decline but 6% organic growth after divestments, with adjusted EBIT at SEK 109 million. Full-year EBIT guidance of at least SEK 1 billion is maintained, hinging on key Q4 releases and continued cost discipline.
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Q1 net sales declined 31% year-over-year to SEK 3.4 billion, with adjusted EBIT at SEK 75 million, reflecting a quiet release quarter and divestments. The group is transitioning to focus on core IPs, expects at least SEK 1 billion adjusted EBIT for FY 2025-2026, and is preparing for the Coffee Stain spin-off in 2025.
Fiscal Year 2025
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Coffee Stain Group outlined a strategy focused on lean, decentralized teams, strong community engagement, and disciplined investment in core IPs and new games. Financially robust, the group maintains high margins and cash flow, with growth driven by updates, platform expansion, and selective M&A. Management prioritizes quality, culture, and long-term sustainability.
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The AGM highlighted a year of transformation, with successful spin-offs, a strengthened balance sheet, and a focus on core IPs and operational efficiency. All governance proposals passed, no dividend was declared, and a SEK 500 million share buyback was announced. AI and cost control remain strategic priorities.
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Net sales rose 19% pro forma to SEK 5.4 billion, with strong profitability from Kingdom Come: Deliverance II and robust mobile growth. Coffee Stain Group will be spun off, and the group will rebrand as Fellowship Entertainment, maintaining a solid net cash position and cautious outlook for new releases.
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Q3 saw 7% organic growth and strong cash flow, driven by PC/console and entertainment segments, despite a year-over-year sales decline due to divestments. Kingdom Come: Deliverance II exceeded expectations post-quarter, and the group maintains a robust financial position with a SEK 5 billion net cash balance.
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Net sales declined year-over-year due to fewer major releases and divestments, with Adjusted EBIT at SEK 1.2 billion and negative free cash flow. The Easybrain divestment will transform the balance sheet, enabling future investments or capital returns.
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Q1 saw net sales of nearly SEK 8 billion and adjusted EBIT of SEK 828 million, with strong mobile and tabletop performance offsetting declines in PC/Console and entertainment. Free cash flow improved significantly, and strategic spin-offs are progressing as planned.
Fiscal Year 2024
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Asmodee outlined a strategy focused on organic growth, brand-building, and disciplined acquisitions, targeting mid-single-digit growth and EBITDA margin above 18%. The company leverages a unique integrated model, strong IP portfolio, and global reach, while advancing sustainability and expanding into new media.
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The AGM highlighted a transformative year with strong financial growth, major restructuring, and the decision to split into three listed companies. All proposals, including board changes and no dividend, were approved, and strategic focus remains on IP development, sustainability, and leveraging AI.