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Embracer Group Reports Decline in Net Sales for FY2024/25 Despite Q4 Gains

Embracer Group, a major player in the PC/console and mobile gaming sectors, announced financial results for the fiscal year ending March 31, 2025, highlighting an overall decline in net sales but a strong final quarter performance driven by key titles.

Financial Overview

• Q4 2024/25 (Jan-Mar 2025)

  • Total net sales: SEK 5.4 billion ($560.5 million), down 6% year-on-year
  • PC/Console games: SEK 3 billion ($311.4 million), down 2%
  • Mobile games: SEK 943 million ($97.9 million), down sharply by 31%
  • Entertainment & services: SEK 1.3 billion ($134.9 million), up 9%

• Full Year 2024/25

  • Total net sales: SEK 22.3 billion ($2.32 billion), down 18% year-on-year
  • PC/Console games: SEK 15 billion ($155.7 million), down 27%
  • Mobile games: SEK 5.3 billion ($550 million), down 9%
  • Entertainment & services: SEK 6.5 billion ($674.6 million), down 7%

Embracer Group reduced its total ongoing game development projects from 141 to 108 and cut headcount from 9,692 to 7,180 employees, including 5,378 game developers, as part of its restructuring efforts.

Highlights and Growth Insights

The company attributes Q4’s “solid” performance to Kingdom Come: Deliverance 2, which sold over 3 million copies with strong player and critic approval. Plans for DLC and free updates are expected to maintain engagement.

Embracer distinguished between actual and organic growth: despite a 31% drop in mobile sales in Q4, mobile organic growth stood at 30%; PC/console games posted 22% organic growth. Adjusted EBIT rose 44% year-over-year in Q4, reaching SEK 1.1 billion.

CEO Lars Wingefors commented:

“By the end of 2025, we plan to spin off Coffee Stain Group… We remain focused on efficiency and long-term resilience.”

Future Outlook and Upcoming Titles

For fiscal year 2025/26, Embracer plans to release 76 games, including new IPs, sequels, and remasters. Noteworthy upcoming titles include:

• AAA games: Killing Floor 3 (Q2 release), Marvel 1943: Rise of the Hydra (schedule within FY25/26, expected to boost revenues with lower margins due to shared partnerships)
• Other games: Metal Eden, Gothic 1 Remake, Reanimal, Fellowship, Wreckreation, SpongeBob SquarePants new game, Norse: Oath of Blood, Deep Rock Galactic: Rogue Core
• One previously announced AAA game delayed to FY2026/27 for additional polish
• An additional nine AAA titles are slated for FY2027/28 and FY2028/29

Strategic Transformations

Embracer completed divestments of Easybrain and Asmodee and is progressing towards spinning off the Coffee Stain Group by year-end to sharpen its strategic focus.

Embracer Group’s fiscal update underscores ongoing challenges within the gaming market, notably in mobile sales, while demonstrating resilience through organic growth and strong upcoming game lineups. Industry watchers should note the company’s measured approach to restructuring and portfolio optimization ahead of significant spin-offs, poised to influence its competitive stance in future years.

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