Q3 2025 Embracer Group AB Earnings Call Transcript
Key Points
- Embracer Group AB (THQQF) reported a solid organic growth of 7% with net sales of SEK7.4 billion.
- The release of Kingdom Come: Deliverance II was a major success, selling over 1 million copies in the first 24 hours and approaching 2 million.
- The company achieved a strong financial position with a pro forma net cash position of around SEK5 billion.
- The PC console segment showed a 21% adjusted EBIT margin despite limited new releases.
- The Entertainment & Services segment experienced a 19% organic growth, driven by successful releases from partners.
- The organic growth in mobile games was limited to 3%, recovering from a previous decline.
- The adjusted EBIT margin for mobile games decreased to 24% due to higher user acquisition costs.
- The ROI chart remains low at 2.1, indicating room for improvement in investment returns.
- The PC console segment experienced a decline in organic growth by 1% due to fewer new releases.
- The company faces challenges in maintaining profitability amidst high user acquisition costs and a competitive market.
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So good morning, everyone, and welcome to Embracer's Q3 2024-25 presentation. My name is Amar Galijasevic. I'm an equity analyst at Carnegie Investment Bank here in Stockholm, and I will be moderating the Q&A session after today's presentation.
Embracer reported solid organic growth in the quarter and, after the quarter's end, also had a very successful release of Kingdom Come: Deliverance II, which I hope we'll hear more about in a couple of minutes. As always, we'll start off with a presentation by CEO, Lars Wingefors; and CFO, Müge Bouillon. And potentially, we'll also have a secret guest with us today. I'll come back for the Q&A session where you can ask questions in the room, on the teleconference, and also through the web.
Without further ado, I'll hand the word over to you, Lars.
Thank you so much. And hello, everyone, and welcome to this
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