Embracer Group report: losses have decreased, revenues from new console and PC games dropped by 91%
Embracer Group has published its report for the first financial quarter ending June 30, 2024. Here are the key highlights from the document.
Dead Island 2
- The holding company closed the quarter with a net loss of 2.19 billion Swedish Kronor (210 million dollars). Last year, the losses were twice as high — 4.45 billion Swedish Kronor (425.1 million dollars).
- Net sales for Embracer Group fell by 24%, totaling 7.93 billion Swedish Kronor (758.2 million dollars).
- The best-selling segment remained tabletop games, generating 3 billion Swedish Kronor (290.4 million dollars). Sales in this segment decreased by 5%.
- Sales in the console and PC game segment dropped by 34% to 2.65 billion Swedish Kronor (253.8 million dollars). Of this total, 146 million Swedish Kronor (13.9 million dollars) came from new releases, whose sales fell by 91% compared to last year. Meanwhile, sales of games from the back catalog increased by 5% to 1.66 billion Swedish Kronor (159.1 million dollars).
- Embracer Group attributed the revenue decline in this segment to the lack of significant releases and "tough comparisons" to last year when Dead Island 2 was released. However, they have a plan to improve the situation. In particular, Embracer Group will focus more on developing key controlled IPs.
- Sales in the mobile games segment amounted to 1.38 billion Swedish Kronor (132.7 million dollars), down 3%. During the quarter, Embracer Group's mobile games were downloaded 230 million times. Their total MAU and DAU stood at 209 million and 27 million users, respectively.
- Sales in the entertainment and services segment, which includes companies not directly related to games, fell by 54% to 848 million Swedish Kronor (81 million dollars).
- The net debt of Embracer Group to creditors decreased to 14.27 billion Swedish Kronor (1.36 billion dollars).
- As of June 30, Embracer Group had 10,844 employees. Three months prior, the company's staff was significantly larger at 12,069 employees. It is likely that some employees left Embracer Group as part of the sale of Gearbox Entertainment.
