Embracer Group Sees 47% Increase in Net Sales for Q1

Embracer Group has released its Q1 financial results, showcasing notable growth in net sales across most operating segments. Key highlights for the period ending June 30, 2023, include: - Net sales of SEK 10.5 billion ($947 million), representing a 47% year-on-year increase - PC and console games segment: SEK 4 billion ($364 million), up 74% year-on-year - Mobile segment: SEK 1.4 billion ($127.5 million), down 3% year-on-year - Net profit: SEK 2.59 billion ($236 million), compared to a net loss of SEK 182 million ($17 million) in the previous year Embracer's net sales experienced 20% organic growth, driven by the success of Dead Island 2 in the PC/Console segment, with two million copies sold within a month of its release. CEO Lars Wingefors noted the strong performance of Crystal Dynamics – Eidos, citing cost efficiency improvements, a stable back catalog business, and increased external funding for ongoing development. The launch of Remnant 2 on July 25 also saw significant success, with over one million copies sold within four days. Net sales for tabletop games reached SEK 3.2 billion ($292 million), up 20%, while Entertainment and Services saw net sales of SEK 1.8 billion ($164 million), representing a 174% increase. Regarding the restructuring program, Wingefors stated that the company is on track to achieve a financial net debt below SEK 8 billion ($729 million) by the end of the current financial year, with a current net debt of SEK 16.8 billion ($1.5 billion) as of June 30. The CEO acknowledged the challenges posed by the restructuring program, including the departure of talented team members. The company's future releases, including Payday 3, Warhammer 40,000: Space Marine 2, and Alone in the Dark, were highlighted in the financial report. Embracer Group reiterated its adjusted earnings before income tax forecast for the fiscal year, expecting between SEK 7 billion ($638 million) and SEK 9 billion ($820 million). In conclusion, Wingefors expressed confidence that the company will emerge stronger, saying, 'We will continue to take important steps in FY 2023/24 to set the direction for the years to come.'