Q4 2025 Embracer Group AB Earnings Call Transcript
Key Points
- Embracer Group AB (THQQF) reported stronger-than-expected financials with net sales growing 19% to SEK5.4 billion.
- The company achieved a 44% growth in profitability, driven by the success of Kingdom Come: Deliverance II.
- Embracer Group AB (THQQF) maintained a strong net cash position of SEK5.4 billion and total available funds of SEK13 billion.
- The company plans to release a diverse slate of games, including two AAA titles, with an expected completion value of SEK3.8 billion.
- The spin-off of Coffee Stain Group is expected to enhance shareholder value and allow for focused growth.
- The performance of some game releases, such as Tomb Raider Remastered and Hyper Light Breaker, did not meet expectations.
- The company's ROI chart showed a decline, with an average of 2 times, which is below the desired level of 3 or more.
- There is cautiousness in expectations for upcoming titles, with some games potentially contributing limited EBIT.
- The mobile market remains highly competitive, requiring constant strategic adjustments and investments.
- The company faces challenges with amortizations and investments in underperforming titles impacting profitability.
Good morning everyone and welcome to Embracer's Q4 '24 -- '24-'25 report. My name is Victor Lindstrom, being an equity analyst at Nordia Markets and will be today's moderator.
As usual, we'll start off with the presentation by CEO, Lars Wingefors and CFO, Muge. And following the presentation, there will be a Q&A session where you will have the possibility to ask questions physically here in the stands, online, or through the telephone conference.
With that said, I'll leave the floor to you Lars.
Thank you, Victor, and hello everyone and welcome to this conference call in Stockholm.
So let's look at the highlights for the quarter. Our financials came in a bit stronger than expected. Net sales grow on performer basis 19% to SEK5.4 billion.
Our profitability driven by the solid performance of Kingdom Come: Deliverance II came in at SEK1.1 billion, which is a 44% performer growth. And free cash flow
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