Interim Report 1: April–June 2020

Key insights

6 takeaways

01
Embracer Group reported net sales of SEK 2,069 million for the quarter ending June 30, 2020, marking an 81 percent increase year-over-year.See it on page 1
02
Operational EBIT surged by 249 percent to SEK 712 million, while EBITDA reached SEK 965 million, representing a 47 percent margin.See it on page 1
03
The company’s growth was driven by the integration of Saber Interactive and increased consumer demand during the COVID-19 pandemic.See it on page 10
04
As of mid-2020, the organization manages 88 studios, 174 owned intellectual properties, and a workforce of nearly 4,000 people across 40 countries.See it on page 25
05
The company is fueling future revenue with a pipeline of 125 active game development projects.See it on page 25
06
Following a directed share issue, the company holds a cash position of SEK 3,525 million and total assets of SEK 17,224 million.See it on page 6

Summary

Embracer Group experienced a period of substantial financial and operational expansion during the first quarter of 2020, ending June 30. Driven by heightened consumer demand during the COVID-19 pandemic and the successful integration of Saber Interactive, the company achieved net sales of SEK 2,069 million, representing an 81 percent increase over the previous year. Operational EBIT surged by 249 percent to SEK 712 million, while EBITDA reached SEK 965 million, reflecting a strong 47 percent margin. This performance underscores the efficacy of the company’s decentralized business model and its aggressive investment strategy in both acquisitions and internal development.

The company’s growth trajectory is supported by a massive expansion of its creative assets and infrastructure. As of mid-2020, the organization encompasses 88 studios and 174 owned intellectual properties, managed by a global workforce of nearly 4,000 employees and contractors across 40 countries. A record pipeline of 125 active game development projects serves as the primary engine for future revenue, bolstered by a strengthened balance sheet that includes total assets of SEK 17,224 million and a cash position of SEK 3,525 million following a successful directed share issue.

Beyond immediate financial gains, the company is prioritizing long-term stability through enhanced sustainability governance and increased financial transparency. With a stable ownership structure anchored by management and co-founders, the organization remains focused on scaling its operative groups—including THQ Nordic and Coffee Stain—to capitalize on its deep catalog of upcoming releases. By maintaining a robust development pipeline and a disciplined approach to capital allocation, the company is positioned to sustain its momentum within the global interactive entertainment market.