Embracer Group Report: Net sales dropped by 21%, and the workforce was reduced by another 400 employees
Embracer Group reported its financial results for the second quarter, which ended on September 30, 2024. The company announced a decline in sales across all business segments.
Monster Jam Showdown
Overall Indicators
- Embracer Group's net losses amounted to 390 million SEK ($35.5 million). A year ago, they were higher — 562 million SEK ($51.1 million).
- The holding company's net sales fell by 21% compared to 2023, reaching 8.5 billion SEK ($778.3 million).
- The most profitable segment was board games, with sales of 3.82 billion SEK ($348.2 million, down by 6%). This was followed by console and PC games ($193 million, down by 46%), mobile games ($123.6 million, down by 8%), and non-game-related entertainment and services ($113.5 million, down by 10%).
- The net debt of Embracer Group to creditors decreased to 13.2 billion SEK ($1.2 billion). The holding expects that after the sale of Easybrain the amount will decrease to 0.5 billion SEK ($46 million).
- As of September 30, Embracer Group had 10,450 employees, 394 fewer than at the end of June.
Game Data
- New releases for consoles and PC brought Embracer Group 266 million SEK ($24.2 million) for the quarter. This is an 81% decrease from the previous year. The holding attributed the decline to the absence of major launches compared to July-September 2023, when Remnant II and Payday 3 were released.
- Satisfactory, released on September 10, exceeded Embracer Group's expectations. However, Disney Epic Mickey: Rebrushed and Monster Jam Showdown performed worse than anticipated.
- Sales of console and PC games from the back catalog plummeted by 21% to 1.26 billion SEK ($115.2 million), attributed to the sale of Gearbox Entertainment and Saber Interactive.
- The most successful projects in the back catalog were Remnant II, Dead Island 2, Star Trek Online, Kingdom Come Deliverance, Deep Rock Galactic, MX vs. ATV Legends, Welcome to Bloxburg, Goat Simulator 3, Payday 3, and Neverwinter Online.
- During the quarter, Embracer Group's mobile games accumulated a total of 252 million downloads, which is 10 million less compared to 2023. Their overall MAU and DAU were 214 million and 27 million, respectively.
- Among mobile games, the top earners for the quarter were Sudoku.com, BlockuDoku, Jigsaw Puzzles, Alien Invasion, and Art Puzzle.
