Embracer Group AB THQQF released its financial results for the first quarter of its 2024 fiscal year, revealing a 24% year-on-year decline in net sales, amounting to $754 million (7.9 billion SEK).

Q1 2024 Financial Breakdown: Key Insights And Revenue Trends

The first quarter of 2024 presented challenges for this Swedish-based company’s various business segments. PC and console gaming, one of the company's significant revenue sources, experienced a 34% decline, GamesIndustry.biz reported.

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This reduction was largely influenced by the comparison to the second quarter of 2023, when Dead Island 2 was released by Plaion, a subsidiary of Embracer. The current quarter's lineup, which included titles like Homeworld 3 and MotoGP 24, did not achieve similar sales milestones.

For the quarter ending June 30, 2024, Embracer reported a net loss of $189.9 million (2.2 billion SEK), slightly improving from the $218 million (2.3 billion SEK) loss recorded in the same period last year. The company's net debt also decreased to $1.37 billion (14.3 billion SEK) from $1.6 billion (16.8 billion SEK) as of June 30, 2023.

Tabletop Games and Mobile Segment Insights

Tabletop games emerged as the largest revenue generator for Embracer during this period, contributing $288.3 million (3.04 billion SEK), a 5% decrease from the previous year. Despite the drop, tabletop games continued to be a stable source of revenue.

The mobile gaming segment brought in $131,718.73 (1.389 million SEK), down 3% year-on-year. However, Embracer noted that profitability in both the mobile and tabletop segments had improved compared to the previous year.

The company's entertainment and services division saw the most significant decline, with revenue dropping 54% to $80.4 million (848 million SEK). This reduction was attributed to fewer new releases compared to the same quarter in the previous year.

Strategic Developments and Upcoming Releases

Embracer Group is moving forward with its plan to split into three publicly listed entities. CEO Lars Wingefors said this strategic shift is “progressing according to plan.”

The first spinoff, tabletop publisher Asmodee, is expected to be listed on Nasdaq Stockholm by the end of the year, with more details to be provided during a capital markets day in the third quarter of 2024.

In terms of upcoming releases, Embracer announced that Kingdom Come Deliverance 2 will launch on Feb. 11, 2025. The game, originally planned for a 2024 release, is anticipated to be one of the most significant titles for the company's fiscal year.

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