Embracer Group Investor Presentation: 6 April 2020

Embracer Group maintains a resilient operational outlook during the onset of the COVID-19 pandemic, prioritizing employee safety while transitioning the majority of its workforce to remote environments. Despite global disruptions, the company reports that development productivity remains stable. The gaming segment benefits from a notable surge in digital sales and user engagement, effectively offsetting the challenges faced by the partner publishing division, where retail declines are partially mitigated by growth in e-commerce channels.

Financial performance for the quarter ending March 31, 2020, reflects this divergence across business units. Games revenue is projected to reach between SEK 810 million and 850 million, exceeding initial expectations due to strong digital performance. Conversely, partner publishing revenue is estimated at SEK 450 million to 500 million, falling slightly below forecasts as physical retail demand softens. Despite these fluctuations, overall demand for the company’s portfolio remains stable across all segments.

The long-term strategic trajectory remains focused on aggressive organic and inorganic growth. Capital allocation continues to prioritize internal game development to drive future revenue and cash flow, while the company maintains a high level of activity regarding potential acquisitions. Following the successful integration of Saber Interactive, interest in further M&A remains elevated, with several ongoing discussions aimed at expanding the group’s footprint. This commitment to a dual-growth strategy underscores a confidence in the current development pipeline to sustain profitability in an evolving market landscape.