Embracer Group Report: Losses Decreased, Revenues from New Console and PC Games Dropped by 91%
Embracer Group published a report for the first financial quarter, which ended on June 30, 2024. Here are the key points from the document.
Dead Island 2
- The holding closed the quarter with net losses of 2.19 billion Swedish kronor ($210 million). Last year, losses were twice as high at 4.45 billion Swedish kronor ($425.1 million).
- Embracer Group's net sales fell by 24% to 7.93 billion Swedish kronor ($758.2 million).
- The tabletop games segment remained the best seller at 3 billion Swedish kronor ($290.4 million), despite a 5% decline in sales.
- Sales in the console and PC games segment dropped by 34% to 2.65 billion Swedish kronor ($253.8 million). Of this amount, 146 million Swedish kronor ($13.9 million) were from new releases, whose sales fell by 91% compared to last year. However, sales of games from the back catalog increased by 5% to 1.66 billion Swedish kronor ($159.1 million).
- Embracer Group explained the revenue decline in this segment due to the absence of notable releases and "tough comparison" with the previous year when Dead Island 2 was launched. However, they have plans to improve the situation, specifically by focusing more on developing controlled key IPs.
- Sales in the mobile games segment amounted to 1.38 billion Swedish kronor ($132.7 million), a decrease of 3%. Over the quarter, Embracer Group's mobile games were downloaded 230 million times. Their total MAU and DAU were 209 million and 27 million respectively.
- Sales in the entertainment and services segment, which includes companies not directly tied to gaming, fell by 54% to 848 million Swedish kronor ($81 million).
- The size of Embracer Group's net debt to creditors decreased to 14.27 billion Swedish kronor ($1.36 billion).
- As of June 30, Embracer Group employed 10,844 people. Three months prior, the holding had a significantly larger staff of 12,069 people. It is likely that some employees left Embracer Group as part of the sale of Gearbox Entertainment.