For the fourth quarter of the fiscal year, Embracer Group posted excellent financial results
Despite a shaky start, the Embracer Group’s financial year has gotten off to a strong start, with cash sales of SEK 3,4 billion (US$ 389 million) in the first quarter, according to their report.
In comparison to the same period the previous year, the company’s liquid general sales increased by 66 percent in the three months that ended on June 30. The majority of this, SEK 2,96 billion (US$ 339 million), comes from its gaming operations, representing an increase of 83 percent over the previous year.
The THQ Nordic division was the largest sector and had the greatest growth, with revenues increasing by 37 percent year on year to SEK 668,7 (US$ 76,5 million).
This may be attributed in large part to the release of BioMutant, which has sold more over one million copies since its release at the end of May. The company added that the game recovered all of its costs, including development, marketing, and even the acquisition of the game’s creator, Experiment 101, and its intellectual property, within a week of its release.
Koch Media maintains its position as the company’s second-largest business, with revenues of SEK 637,6 million (US$ 72,9 million), representing a 4% increase over the previous year. On the other hand, the Saber Interactive division was the only one to report a decrease in sales, with sales falling by 13 percent from SEK 349,2 million (US$ 39,9 million) to SEK 304,9 million (US$ 34,9 million). This has been attributed to a lack of new releases, particularly when compared to the highly successful launch of Snowrunner the year before.
Two significant acquisitions made by Embracer at the start of this year also contributed to the company’s financial performance. Adding Easybrain resulted in liquid sales of SEK 576 million (US$ 65,9 million), whereas Gearbox brought in liquid sales of SEK 437 million (US$ 50 million) through acquisition.
When compared to the previous year, the sales of Embracer’s film and publishing subsidiaries increased by 4 percent, to SEK 465,7 million (US$ 53,4 million). The group’s EBITDA increased by 59 percent to SEK 1,5 billion (US$ 171,5 million), while its operating profit increased by 79 percent to SEK 1,3 billion (US$ 148,7 million).
CEO Lars Wingefors stated in his remarks that both sales and operating profit margin set new records for the company, which he said was in line with the administration’s expectations.
Wingefors observes that the upcoming quarter will most likely be heavily reliant on titles from the previous year’s catalog, but that a “strong flux of new launchings” in the third and fourth quarters will spur growth throughout the whole fiscal year, according to the analyst.