Interim Report: Q3 FY 2024/25

The interim report for Embracer Group’s third quarter of FY 2024/25 presents a snapshot of the company’s financial performance, operational highlights, and strategic developments over the October‑December 2024 period. Net sales rose to SEK 7,364 million, a 7 % year‑over‑year increase, driven by healthy organic growth and an improved margin in the PC/Console segment. Adjusted EBIT fell 11 % to SEK 1,175 million, reflecting higher operating costs and the impact of divestments. Free cash flow for the quarter was SEK 907 million, up from a negative figure in the same period last year, largely due to the divestment of Easybrain and a focus on unlocking hidden value in existing assets.

Key operational milestones include the successful launch of “Kingdom Come: Deliverance II,” continued emphasis on operational efficiency, and the spin‑off of Asmodee onto Nasdaq Stockholm. The company’s portfolio now spans 64 internal studios and 5,170 employees, with a slate of ten AAA PC/Console titles in development and a robust pipeline of mid‑sized releases slated for FY 2025/26.

Financially, Embracer’s leverage covenant remains comfortably met, with net debt falling to a negative SEK 3.2 billion by year‑end 2024, supported by strong liquidity of approximately SEK 12.7 billion. Capital expenditures are projected to decline, while marketing spend is expected to rise as the company pursues growth in mobile and tabletop segments. Overall, the report signals a strategic shift toward portfolio optimization, cost discipline, and targeted expansion in high‑margin segments.