Embracer Group announced its financial results for the fourth quarter of the fiscal year 2024/25, related to the period between January and March 2025.
According to the relevant documents, Net Sales for the quarter were SEK 5,386 million, down 6% year-on-year (albeit the company claims a 19% organic growth). The PC and Console games business recorded SEK 3,069 in sales, down 2% year-on-year (22% organic growth).
Sales for mobile games dropped to 943 million (down 31% year-on-year).
Earnings Before Interest and Taxes were 4,322 million SEK, compared to a loss of 13,344 million SEK in the previous year.
Looking at the full year, net sales were SEK 22,370 million, down 18% year-on-year (-9% organic growth).
For the PC and Console games business, sales were 10,450 million SEK, down 27% year-on-year (-13% organic growth).
Mobile Games made 5,359 million SEK, down 9% year-on-year (-1% organic growth)
EBIT was 3,535 million SEK compared to a loss of 14,400 million SEK in the previous fiscal year.
CEO Lars Wingefors considers this “a solid ending to the year,” with Kingdom Come: Deliverance 2 continuing to perform in Q4 and reaching 3 million copies sold after the end of he quarter.
According to Wingefors, the game by Warhorse Studios and PC and console games in general drove the solid performance in Q4.
By the end of 2025, the company plans to spin off the Coffee Stain Group (known for Goat Simulator, Satisfactory, and more) distributing its shares to Embracer’s shareholders and listing it on the Nasdaq First North Premier Growth Market in Stockholm.
Following the separation, Ebracer itself will shed its frankly pretty stained name and will become “Fellowship Entertainment” after the Middle-earth IP. Its strategy will be to “transform into one powerhouse group with game development and publishing at its core, complemented with transmedia capabilities within IP licensing, comics, merchandise, film, and distribution.”
During the current fiscal year (between April 2025 and March 2026) the company expects to release 76 different games featuring “a mix of new IPs, sequels, and remasters.”
Among these are Metal Eden, Gothic 1 Remake, REANIMAL, Fellowship, Wreckreation, the next SpongeBob SquarePants game, NORSE: Oath of Blood, Deep Rock Galactic: Rogue Core, and “a handful” of unannounced games.
A previously expected unannounced AAA game has been delayed from the current fiscal year to the next as it “will likely need a few more quarters to polish.”
As a result, Embracer expects net sales for the current fiscal year to be slightly above the previous one, and profit to remain broadly the same.
We then get the usual rather bleak boast about cost reductions that inevitably cost a number of developers their jobs. I’ll just cite Wingefors directly because I’d need a shower after summarizing this, and I’ve already had one this morning.
“In preparation for the next spin-off, we are strengthening the business for long-term stability and growth, with our key studios, publishers and IPs at the center. As a result, we have adjusted the size and structure of several teams in the quarter, primarily within PC/Console publishing and distribution, as well as work-for-hire development.
Additionally, changes are being made within Amplifier Game Invest to improve group profitability. This involves integrating successful and high-potential studios, including Tarsier Studios, into other operative groups within Embracer to support their continued growth, while underperforming games and studios with negative cash flow have been closed or divested.
The decision has also been made to dissolve Amplifier HQ. Ultimately, these changes will help us invest more into greater player experiences and support future growth.”
Total headcount dropped further to 7,180 employees, of which 5,378 are game developers. This is down from 7,873 employees and 5,757 developers at the end of the previous quarter.
If you’d like to compare these results with historical data, you can read our report about the previous quarter of the fiscal year, based on data released by Embracer in February.
Other gaming companies have also already announced their financial results this quarter, including Koei Tecmo, Microsoft, Electronic Arts, Nintendo, Bandai Namco, Konami, Marvelous Entertainment, Sega, Capcom, Sony, Square Enix, Ubisoft, Shift-Up, and Take-Two.
