Embracer Group AB

Latest Results (23.05.2024):

Q4 FY 2023/24 Overview

In the fourth quarter of the fiscal year 2023/24, Embracer Group AB reported a decrease in net sales by 5% year-over-year, totaling SEK 8,875 million. This decline was primarily due to a 10% organic contraction in the market. Despite this, adjusted EBIT saw a significant increase of 56%, reaching SEK 1,426 million, reflecting a stronger operational performance excluding non-recurring items.

Annual Financial Performance

For the full fiscal year from April 2023 to March 2024, Embracer Group AB achieved a 12% increase in net sales, amounting to SEK 42,206 million. This growth was supported by a modest 1% organic growth across the segments. The company's adjusted EBIT also improved by 12% to SEK 7,063 million, maintaining a stable adjusted EBIT margin of 17%.

Earnings and Cash Flow Details

Embracer Group AB faced significant challenges in Q4 FY 2023/24, with reported EBIT at SEK -20,378 million due to substantial non-cash items affecting comparability. However, the adjusted earnings per share increased to SEK 1.62 from SEK 0.38 in the previous year. The company also reported a strong cash flow from operating activities at SEK 1,801 million.

Segment Performance

During Q4 FY 2023/24, Embracer Group AB saw varied performance across different segments. The PC/Console Games segment experienced a 10% decrease in sales, while Mobile Games grew by 4%. The Tabletop Games segment slightly increased by 1%, and the Entertainment & Services segment saw a 15% decline.

Future Outlook

Looking ahead to FY 2024/25, Embracer Group AB anticipates a financial performance similar to FY 2023/24, with expectations of materially improved free cash flow and EBITDAC. The company plans to continue its focus on key gaming segments and expects to release over 70 projects, including at least three significant unannounced titles, aiming for growth across established and new IPs.