Ahead of a results discussion featuring CEO Lars Wingefors and CFO and deputy CEO Johan Ekström, the company posted a revenue gain of 47 percent for the April-June period over the same quarter of 2022 to 10.45 billion Swedish krona , with organic growth excluding acquisitions, coming in at 20 percent.
Embracer’s earnings, as reported in the form of adjusted earnings before interest and taxes , hit 421 million SEK , a swing from a year-ago loss of 398 million SEK, with the company also touting a “notable improvement” over the previous quarter and adding: “The first-quarter result is also ahead of management expectations for the quarter.”
In the latest quarter, the firm’s Entertainment & Services unit made “a notable contribution, growing by 70 percent organically,” Embracer said, noting “a strong contribution from Middle-earth Enterprises, driven by strong licensing revenue for. The performance of Middle-earth Enterprises is well ahead of the business plan developed at the time of acquisition a year ago.”
Added the company: “It is encouraging to see many exciting external projects based on this incredible IP, including the recently successfully released, the upcoming PC/console survival-crafting gameas well as many other exciting new products that will grow the IP further.” For its fiscal first quarter, though, Embracer also reported a free cash flow loss of 600 million SEK , “in line with the plan for the year given the continued imbalance between investments and completed PC/ console game development.” But it predicted “significantly improved free cash flow already in the second quarter.”