Interim Report 2: July–September 2020

Embracer Group experienced a period of substantial financial expansion during the second quarter of 2020, characterized by an 89 percent increase in net sales to SEK 2,383.2 million. This growth was underpinned by a 61 percent organic increase in the core games business, fueled by strong back-catalogue performance and successful new releases. Operational EBIT rose by 171 percent to SEK 653 million, while EBITDA reached SEK 969 million, reflecting a significant scaling of operations and improved profitability across all business segments.

The company’s aggressive growth strategy remained a primary driver of its performance, marked by the acquisition of nine entities, including 4A Games, Vertigo Games, and DECA Games. These additions, alongside the successful integration of Saber Interactive, expanded the company’s intellectual property portfolio and development capabilities. To support this rapid expansion and ensure long-term stability, the organization bolstered its financial position through a SEK 5.78 billion share issue and the strategic refinancing of acquisition-related debt, resulting in a robust cash position of SEK 3,579.1 million.

Beyond direct financial gains, the company demonstrated operational maturity by formalizing its use of alternative key performance indicators to provide greater transparency into its underlying business health. By tracking metrics such as organic growth, headcount, and project pipelines, the organization aims to provide stakeholders with a clear view of its trajectory. With record free cash flow and a diversified portfolio spanning game development and partner publishing, the company maintains a strong outlook for continued high-quality development and long-term value creation within the global interactive entertainment market.