Embracer's Q3 report: KCD2 "fast approaching" 2M copies sold, net debt cut fivefold, and more

Embracer Group continues to recover from its cost-cutting restructuring program. The Swedish company has managed to significantly reduce its net debt over the past 12 months, also struggling with falling game sales.

Financial highlights

According to its Q3 report, Embracer Group reached SEK 7.3 billion ($679 million) in net revenue in the three-month period ended December 31, 2024, down 3.4% year-over-year.
Entertainment & Services was the largest segment by revenue, growing 19% year-over-year to SEK 3 billion ($284.8 million). It is followed by PC/Console ($239.7 million, -23%) and Mobile ($153.7 million, +2%).
Operating profit was SEK 638 million ($58.8 million), compared to an operating loss of SEK 305 million ($28 million) in the same period last year.
The Swedish company also ended the three-month period with a net profit of SEK 997 million ($91.8 million), a significant improvement from a net loss of SEK 1.74 billion ($160 million) in Q3 2023.
As of December 31, 2024, Embracer Group’s net debt was SEK 3.2 billion ($296.6 million), a fivefold reduction from SEK 16.1 billion ($1.48 billion) as of December 31, 2023.

Embracer Group’s game sales and other data

In Q3, sales of new PC and console games amounted to SEK 235 million ($21.6 million), half as much as in the same period last year.
Embracer cited the lack of new major releases in the latest three-month period as the main reason for such a sharp decline. The main revenue drivers were Let’s Sing 2025, Metro Awakening VR, Legacy of Kain: Soul Reaver 1 & 2 Remastered, and Goat Simulator Remastered.
The VR version of Metro Awakening fell short of internal targets, while Legacy of Kain: Soul Reaver 1 & 2 Remastered slightly outperformed expectations.
Back catalog sales fell 13.8% year-over-year to SEK 1.78 billion ($164 million). The decline was due to the divestments of Saber Interactive and Gearbox Software.
The top 10 titles by revenue were Dead Island 2, Disney Epic Mickey: Rebrushed, Goat Simulator 3, Satisfactory, Hot Wheels 2: Unleashed, Metro: Exodus, Star Trek Online, MX vs ATV Legends, Remnant II, and Valheim.

The Swedish company also shared data on some games released after Q3. Kingdom Come: Deliverance II, which sold 1 million copies in its first 24 hours, is now “fast approaching 2 million.”
“It is our strong belief that the game will continue to generate substantial revenues over the coming years,” Embracer CEO Lars Wingefors said in a statement.
Other revenue items, which include work-for-hire and other game development projects, fell 30% to SEK 588 million ($54.2 million). Crystal Dynamics/Eidos was the main contributor, but the decline was also due to the Gearbox and Saber divestments.
Embracer’s mobile games generated 254 million downloads in Q3, down 1.5% year-over-year. Their total MAU and DAU dropped to 210 million and 26 million, respectively.