Embracer Group Sees 22% Decline in Sales, Maintaining $298 Million Debt Burden
By The community is hopeful about Q4 following the achievement of Warhorse Studios’ Kingdom Come: Deliverance 2
Embracer Group has disclosed its financial outcomes for the nine months ending December 31, 2024, showing downturns in its PC/console and mobile segments.
Conversely, it experienced a stable profit during its third quarter owing to the completed spin-off of tabletop publisher Asmodee.
Here’s what you need to know:
The figures:
For the three months ending December 31, 2024:
Net sales: SEK 7.4 billion ($680 million), down 3% year-on-year, comprising:
- PC/console games: SEK 2.6 billion ($242 million), down 23% year-on-year
- Mobile games: SEK 1.6 billion ($149 million), up 2% year-on-year
Net profit: SEK 960 million ($89 million, compared to a net loss of SEK 1.8 billion ($167 million) during the same period last year)
For the nine months ending December 31, 2024:
Net sales: SEK 16.9 billion ($1.5 billion), down 22% year-on-year comprising:
- PC/console games: SEK 7.3 billion ($679 million), down 35% year-on-year
- Mobile games: SEK 4.4 billion ($409 million), down 3% year-on-year
Net loss: SEK 1.3 billion ($121 million, compared to a net loss of SEK 1.4 billion ($130 million) during the same period last year)
The key points:
Embracer Group credited its profit of SEK 960 million ($89 million) during the third quarter to the spin-off of tabletop publisher Asmodee.
The procedure was completed on February 7, 2025, and Asmodee is now an independently listed company trading on Nasdaq Stockholm.
Coffee Stain & Company is the final entity to become independent from the Embracer Group as it divides into three publicly traded firms. Middle-Earth Enterprises & Company – which includes developers Warhorse Studios and Crystal Dynamics – will remain within Embracer Group as it is currently listed.
This ongoing initiative came about as a result of a nine-month restructuring plan, which led to the closure of Volition Games, Free Radical Design, and Campfire Cabal, as well as the sale of Saber Interactive and Gearbox. More than 1,400 employees were let go as a result.
By the end of 2024, Embracer Group reported a net debt of SEK 3.2 billion ($298 million, compared to SEK 16.1 billion ($1.5 billion) at the close of 2023.
The number of game developers employed by Embracer Group compared to the same period last year decreased from 9,896 to 5,757. The overall workforce dropped from 12,695 to 7,873 employees.
According to the financial report, Embracer Group observed a decline in its PC/console segment due to “limited new releases” and the divestiture of Saber and Gearbox affecting comparative figures.
Revenue from legacy titles, including platform agreements, fell by 14% to SEK 1.7 billion ($158.7 million), which was also influenced by the sales of Saber and Gearbox.
However, Embracer Group underscored the success of Warhorse Studios’ Kingdom Come: Deliverance 2, which debuted on February 4.
The action role-playing game attracted 1 million players within 24 hours and recorded over 250,000 concurrent players on Steam.
“We firmly believe that the game will continue to produce significant revenues in the coming years, demonstrating the outstanding quality, immersion, and attractiveness of Kingdom Come: Deliverance 2,” stated CEO Lars Wingefors.
“Warhorse Studios has a comprehensive roadmap, featuring updates and new content over the next 12 months, ensuring an engaging and continuously evolving experience for the community.”
As a result, Embracer Group has a positive outlook for its Q4