Embracer Group Ab Class B ( (THQQF) ) has released its Q2 earnings. Here is a breakdown of the information Embracer Group Ab Class B presented to its investors.
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Embracer Group AB is a diversified gaming and entertainment company, primarily engaged in the development and publishing of PC, console, and mobile games, as well as entertainment services. The company operates in the interactive entertainment industry with a focus on owning and managing a wide array of intellectual properties.
In its latest earnings report for the second quarter of 2025, Embracer Group AB reported a decrease in net sales by 19% to SEK 3,850 million compared to the same period last year. Despite this decline, the company achieved a 6% organic growth, driven by strong performance in its Entertainment & Services segment. The adjusted EBIT for the quarter stood at SEK 109 million, reflecting a significant decrease from the previous year.
Key financial highlights include a 61% decline in mobile games sales, offset by a 17% increase in the Entertainment & Services segment. The company’s PC/Console Games segment also saw a decrease in sales by 13%. Embracer Group’s adjusted EBIT margin fell to 3% from 11% in the previous year, and the company reported a negative free cash flow of SEK 348 million. The management remains focused on strengthening profitability and unlocking long-term value through strategic initiatives and investments in core intellectual properties.
Looking ahead, Embracer Group maintains its forecast of achieving at least SEK 1,000 million in adjusted EBIT for the financial year 2025/26. The company anticipates stronger performance in the upcoming quarters, particularly in the Entertainment & Services segment, while continuing to face challenges in the PC/Console Games segment. Embracer’s strategic focus includes the planned spin-off of Coffee Stain Group and ongoing efforts to streamline operations and enhance profitability.