Interim Report 2: July–September 2019

Embracer Group experienced a period of significant structural and financial transformation during the second quarter of 2019, characterized by a strategic pivot toward owned intellectual property and digital distribution. While overall net sales remained stable at SEK 1,259.7 million, the company achieved a 133% increase in operational EBIT to SEK 241 million. This profitability surge was largely fueled by a 117% revenue increase within the core games business, effectively offsetting a decline in the partner publishing segment.

The company aggressively expanded its operational footprint through the acquisition of several entities, including Milestone, Gunfire Games, and Goodbye Kansas Game Invest. These investments, coupled with a robust development pipeline of 86 titles, drove intangible assets to SEK 5,521.6 million. Although these expansion efforts resulted in a reduction of net cash to SEK 1,099.5 million, the group successfully scaled its human capital, reaching a total headcount of 1,632 employees by the end of September 2019.

Financial performance for the first half of the fiscal year, spanning April through September 2019, yielded a net profit of SEK 117.4 million and an EBITDA of SEK 807.6 million. Governance remains centralized, with CEO Lars Wingefors retaining 51.11% of the voting power. By utilizing standardized alternative key performance indicators to track project counts and sales splits, the group maintains a transparent framework for evaluating its long-term growth strategy. These results underscore a transition toward a more integrated, self-sustaining development model designed to capitalize on a growing portfolio of proprietary gaming assets.