Embracer Group sees 24% drop in Q1 2024 sales

Embracer Group has launched its monetary outcomes for the primary quarter of its 2024 fiscal 12 months, reporting a big 24% year-over-year decline in web gross sales to SEK 7.9 billion ($754 million). The corporate attributed this drop to more durable comparisons with the earlier 12 months, when it skilled super success with the launch of Lifeless Island 2.

The corporate’s web loss for the quarter got here in at SEK 2.2 billion ($210 million), an enchancment from the SEK 2.3 billion ($219.4 million) loss recorded in the identical interval final 12 months. On the steadiness sheet, Embracer’s web debt decreased to SEK 14.3 billion ($1.37 billion), down from SEK 16.8 billion ($1.6 billion) as of June 30, 2023.

Embracer’s varied enterprise segments all noticed gross sales declines, with the PC/console video games division struggling the biggest drop of 34% because of the difficult comparability to Lifeless Island 2’s success within the prior 12 months. The corporate’s tabletop video games remained the largest income generator at SEK 3.04 billion ($290 million), although this nonetheless represented a 5% year-over-year lower.

Whereas new recreation releases, similar to Homeworld 3, MotoGP 24, Gigantic: Rampage Version and Oddsparks: An Automation Journey, contributed SEK 146 million ($14 million) within the quarter, this marked a 91% decline from the earlier 12 months when Lifeless Island 2 launched.

Wanting forward, Embracer introduced that Kingdom Come Deliverance 2 is now anticipated to launch on February 11, 2025, making it the corporate’s largest launch within the upcoming fiscal 12 months. The sport was initially deliberate for a 2024 debut.

Embracer’s CEO, Lars Wingefors, additionally offered an replace on the corporate’s beforehand introduced plans to separate into three publicly-listed entities. The primary of those, tabletop writer Asmodee, is on observe to listing on Nasdaq Stockholm earlier than the top of 2024, with extra particulars to be shared throughout a capital markets day in Q3 2024. The next itemizing and distribution for the “Espresso Stain & Mates” division is deliberate for 2025, leaving the remaining “Center-earth Enterprises & Mates” because the core Embracer Group.