Restructuring Program: Embracer Group

Embracer Group has initiated a comprehensive restructuring program for the 2023/2024 fiscal year, aimed at enhancing operational efficiency, increasing cash conversion, and reducing capital expenditure. The primary financial objective of this initiative is to lower the company’s net debt to below SEK 10 billion by the end of the fiscal year. To achieve these targets, the company plans to reduce annual capital expenditure by at least SEK 2.9 billion by fiscal year 2024/2025 and cut overhead costs by at least SEK 0.8 billion, representing a 10% reduction compared to the fourth quarter of the 2022/2023 fiscal year.

The restructuring strategy focuses on centralizing game investment processes, consolidating operative group structures, and shifting investment priorities toward internal development of owned intellectual property. Operational measures include the closure of specific studios, the termination of unannounced projects with low projected returns, and a reduction in external development spending. Furthermore, the company intends to divest non-core assets to streamline its business portfolio. These efforts are being led by the interim Chief Operating Officer and interim Chief Strategy Officer, who are tasked with implementing a more data-driven approach to game forecasting and performance accountability.

Despite these structural changes, Embracer Group maintains its previously communicated Adjusted EBIT forecast of SEK 7–9 billion for the 2023/2024 fiscal year. This forecast remains contingent upon existing market conditions, scheduled game releases, and current exchange rates. The company intends to provide further details regarding its long-term strategy, business model, and mid-term financial targets during a Capital Markets Day scheduled for the second half of 2023.