Embracer Group's annual report: losses exceeded $1.7 billion, plans to release over 70 games by April 2025
Embracer Group published its financial report for the fiscal year ending on March 31, 2024. We highlighted the key points.
Alone in the Dark
- Embracer Group ended the year with a net loss of 18.17 billion SEK ($1.7 billion). In comparison, last year it reported a profit of 4.4 billion SEK ($415 million).
- At the same time, annual net sales increased by 12%, reaching 42.2 billion SEK ($3.93 billion).
- The most profitable segment remained board games, with net sales of 14.8 billion SEK ($1.38 billion), a 13% increase.
- The second largest segment by sales was console and PC games — 14.4 billion SEK ($1.34 billion), a 7% increase. Of this, 6.9 billion SEK ($644.4 million) came from back catalog games.
- Embracer Group noted that Alone in the Dark and Outcast: A New Beginning did not meet expectations. However, Tomb Raider I-III Remastered and Deep Rock Galactic: Survivor performed better than the holding company anticipated.
- Additionally, Embracer Group boasted that Dead Island 2 was purchased by over 3 million people. They clarified that the 3 million refers specifically to game sales, while a total of 7 million people played the zombie action game. To recall, the figure of 7 million players had already been mentioned by the game's developer, Dambuster Studios, in April. At that time, they said that 42% of players played Dead Island 2 on PlayStation, 40% on Xbox, and 18% on Epic Games Store. They did not disclose sales figures for Dead Island 2.
- The mobile games segment's net sales amounted to 5.9 billion SEK ($551.4 million), a 2% increase. Embracer Group's mobile games were downloaded over 1 billion times during the year. The total MAU and DAU of the games were 258 million and 31 million people, respectively.
- The entertainment and services segment, which includes non-game-related divisions such as Middle-earth Enterprises, earned 7 billion SEK ($660 million) over the year, a 34% increase.
- In the current fiscal year, Embracer Group plans to release over 70 games, including at least three significant, unannounced titles.
- The split of Embracer Group into three companies — Asmodee, Coffee Stain & Friends, and Middle-earth Enterprises & Friends — is proceeding as planned.
- As of March 31, 2024, the holding company employed a total of 12,069 people. Last year, the number of employees was significantly higher at 16,601. According to Embracer Group, it parted ways with 1,583 employees during restructuring. Additionally, about 3,000 people left the holding following the sale of Saber Interactive. After completing the sale of Gearbox Entertainment (expected to be finalized by the end of June 2024), Embracer Group's staff will reduce even further.
