Embracer Group Annual Report 2024/25

Key insights

6 takeaways

01
Embracer Group is splitting into three independent, publicly listed entities—Asmodee Group, Coffee Stain Group, and Fellowship Entertainment—with the separation process expected to conclude by the end of 2025.See it on page 6
02
The company achieved a net profit of SEK 5,963 million in the 2024/25 fiscal year, a significant recovery from the previous year's loss of SEK 18,178 million.See it on page 112
03
Strategic divestments, including the sales of Gearbox Entertainment and Easybrain, were primary drivers of the group's financial turnaround.See it on page 154
04
The company significantly reduced its goodwill carrying amount from SEK 31,210 million to SEK 12,373 million, signaling a shift toward more disciplined asset valuation.See it on page 130
05
Total net sales for the fiscal year were SEK 22,370 million, accompanied by a reduction in total headcount to 6,803 employees.See it on page 112
06
The group has prioritized operational efficiency and sustainability, achieving a 14% reduction in greenhouse gas emissions while aligning reporting with the EU’s Corporate Sustainability Reporting Directive.See it on page 27

Summary

The 2024/25 fiscal year for Embracer Group represents a definitive pivot from an aggressive, acquisition-heavy growth strategy toward a leaner, decentralized structure. The primary thesis of this transformation is the separation of the organization into three independent, publicly listed entities: Asmodee Group, Coffee Stain Group, and the remaining core business, to be renamed Fellowship Entertainment. This restructuring is designed to optimize capital allocation, improve operational efficiency, and sharpen the focus on core intellectual property management, including high-profile franchises such as The Lord of the Rings and Tomb Raider.

Financial results for the period reflect this structural shift, marked by a significant turnaround in profitability. The group reported a net profit of SEK 5,963 million, a stark improvement over the previous year’s loss of SEK 18,178 million. This recovery was largely driven by strategic divestments—including the sales of Gearbox Entertainment and Easybrain—and the distribution of Asmodee. While total net sales declined to SEK 22,370 million, the company successfully reduced its goodwill carrying amount from SEK 31,210 million to SEK 12,373 million, reflecting a more disciplined approach to asset valuation and impairment.

The scope of this transition encompasses the group’s global operations across PC/Console, Mobile, and Entertainment segments. Alongside financial restructuring, the company has prioritized sustainability and governance, aligning its reporting with the EU’s Corporate Sustainability Reporting Directive (CSRD). Key operational milestones include a 14% reduction in greenhouse gas emissions and the implementation of a double materiality assessment to better identify financial and societal risks. Despite a reduction in total headcount to 6,803 employees, the group maintains a focus on digital safety, accessibility, and responsible gaming. Moving forward, the organization is committed to finalizing its separation into three standalone entities by the end of 2025, supported by a robust internal control framework and a refined strategy centered on long-term value creation.