Embracer Group AB
OTC:THQQF

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Embracer Group AB Logo
Embracer Group AB
OTC:THQQF
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Price: 6.59 USD Market Closed
Market Cap: 8.8B USD

Embracer Group AB
Investor Relations

Founded in Sweden, Embracer Group AB has carved out a niche in the global video gaming industry, evolving into a powerhouse through strategic acquisitions and diverse gaming ventures. The company, originally known as THQ Nordic, began its journey in the 1990s and has since expanded its portfolio to include a wide variety of game development studios, publishing arms, and intellectual properties. These expansions have been driven by the emphasis on acquiring both underutilized and successful IPs, giving the company a robust library that appeals to various gaming demographics. From action-adventure games to niche RPGs, Embracer Group leverages this portfolio to engage a broad audience, effectively monetizing through game sales, downloadable content (DLC), and sometimes merchandizing.

The business model thrives on a decentralized operating structure, where acquired studios maintain a high degree of independence, fostering creativity and innovation within each entity. Embracer Group capitalizes on synergies between these studios by sharing technology, marketing strategies, and operational expertise, which collectively enhance overall efficiency and productivity. This autonomy empowers studios to align closely with player preferences and rapidly adapt to industry trends, which, in turn, reinforces Embracer's revenue streams across digital and physical game sales. While its focus remains primarily on PC and console platforms, the company is always exploring new avenues such as mobile gaming and subscription-based models, ensuring steady growth and resilience in an ever-evolving entertainment landscape.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Feb 13, 2025
AI Summary
Q3 2025

Organic Growth: Embracer delivered 7% organic growth for the quarter, led by strong performance in Entertainment & Services and an improvement in Mobile.

Kingdom Come II Success: Kingdom Come: Deliverance II launched after quarter-end, selling over 1 million copies in 24 hours and nearing 2 million, surpassing management’s already high expectations.

Profitability: Adjusted EBIT was close to SEK 1.2 billion—a decline of 11% YoY but above management’s forecast, with robust margins in PC/console and solid free cash flow generation.

Strong Cash Position: Following divestments, Embracer now holds a pro forma net cash position of SEK 5 billion, with improved liquidity and lower net debt.

Operational Improvements: Ongoing restructuring and cost-cutting have improved operating expenses and free cash flow, and management expects further efficiency gains ahead of the next planned spin-off.

Outlook: The pipeline includes 10 AAA games in development over the next three years, with two scheduled for late FY25/26 and a slate of midsized releases; management is cautious about guidance due to industry timing risks.

Key Financials
Net Sales
SEK 7.4 billion
Organic Growth
7%
Adjusted EBIT
SEK 1.2 billion
Free Cash Flow
SEK 907 million
Pro Forma Net Cash Position
SEK 5 billion
Group Liquidity
SEK 12.7 billion
PC Console Adjusted EBIT Margin
21%
Mobile Organic Growth
3%
Mobile Adjusted EBIT Margin
24%
Entertainment & Services Organic Growth
19%
Entertainment & Services Adjusted EBIT Margin
9%
User Acquisition Costs
SEK 840 million
Net Debt (as of December)
SEK 3.2 billion
Kingdom Come: Deliverance II Units Sold
over 1 million in under 24 hours; approaching 2 million
Other Earnings Calls

Management

Mr. Lars Wingefors
Founder, CEO & Director
No Bio Available
Magistrate Klemens Kreuzer
Co-Founder
No Bio Available
Ms. Muge Bouillon
Group CFO
No Bio Available
Mr. Oscar Erixon
Head of Investor Relations
No Bio Available
Mr. Ian Gulam
Chief of Staff, Legal & Governance
No Bio Available
Atieh Jardenas
Head of Governance & Compliance Legal
No Bio Available
Beatrice Flink Forsgren
Head of Brand & Communication
No Bio Available
Ellinor Johansson
Human Resources Manager
No Bio Available
Emma Ihre
Head of Sustainability
No Bio Available
Mikael Le Bourhis
Head of the Access+ studio
No Bio Available

Contacts

Address
VARMLAND
Karlstad
Alvgatan 1
Contacts