News & Media

Embracer Group publishes Full Year Report and Q4, January-March 2022: OPERATIONAL EBIT INCREASED BY 17% TO SEK 1,052 MILLION

FOURTH QUARTER, JANUARY–MARCH 2022 (COMPARED TO JANUARY–MARCH 2021)

• Net sales increased by 117% to SEK 5,228.5 million (2,404.2).
• Net sales for business area Games increased by 124% to SEK 4,417.5 million (1,975.2). THQ Nordic SEK 328.3 million (354.6), Koch Media Publishing SEK 543.3 million (464.9), Coffee Stain SEK 171.2 million (780.9), Saber Interactive SEK 448.0 million (270.7), DECA Games SEK 615.1 million (104.2), Gearbox Entertainment SEK 606.1 million (-), Easybrain SEK 1,134.2 million (-) and Asmodee SEK 571.2 million (-).
• Organic growth in constant currency for business area Games amounted to –34%. Pro forma growth in constant currency for business area Games amounted to 3%.
• Net sales for business area Partner Publishing/Film increased by 72% to SEK 736.5 million (429.0).
• EBITDA increased by 26% to SEK 1,472.7 million (1,172.5), corresponding to an EBITDA margin of 28% (49%).
• Operational EBIT increased by 17% to SEK 1,052.4 million (903.2) corresponding to an Operational EBIT margin of 20% (38%).
• Cash flow from operating activities amounted to SEK 1,589.5 million (1,521.8). Net investments in intangible assets amounted to SEK –998.3 million (598.9). Free cash flow before change in working capital amounted to SEK 378.6 million (531.3).
• Adjusted earnings per share was SEK 0.81 (1.03).

Invitation to presentation of Embracer Group’s Q4 and Year end report

Embracer Group hereby invites you to a presentation in connection with the publication of the Year End Report for the fiscal year 2021/2022 the interim report for the fourth quarter, the period January-March 2022. The report will be published at 06.00 (CET) on May 19th and available as of this time at: www.embracer.com

Invitation to Embracer Group’s presentation on its acquisition of Eidos, Crystal Dynamics and Square Enix Montréal at 09.00 (CEST)

Embracer Group hereby invites you to a presentation on today’s press release and announcement of the acquisition of Eidos, Crystal Dynamics and Square Enix Montréal amongst other assets.

Embracer Group enters into an agreement to acquire Eidos, Crystal Dynamics, and Square Enix Montréal amongst other assets

Embracer Group AB (”Embracer”) has entered into an agreement to acquire the development studios Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games from SQUARE ENIX HOLDINGS CO., LTD. (“Square Enix Holdings”). In total, the acquisition includes ~1,100 employees across three studios and eight global locations. The total purchase price amounts to USD 300 million on a cash and debt free basis, to be paid in full at closing. Embracer has secured additional long-term debt funding commitments for this and other transactions in the pipeline. The company today reiterates its current Operational EBIT forecast for FY 21/22, FY 22/23, and FY 23/24. The transaction is subject to various regulatory and other external approvals and is expected to close during the second quarter of Embracer’s financial year 22/23 (July-September 2022).

Embracer will hold a webcast presentation for investors, analysts and media on 2 May 2022 at CET 09.00. Please find details in a separate invitation that will follow this release.

Update on the situation due to the war in Ukraine

Embracer Group completes the acquisition of Asmodee

On 15 December 2021, Embracer Group AB ("Embracer") entered into exclusive negotiations to acquire Financière Amuse Topco SAS (“Asmodee”) from funds advised or managed by PAI Partners SAS (“PAI”) and other shareholders of Asmodee. On 17 January 2022 Embracer, PAI and the other shareholders of Asmodee entered into a share purchase agreement to complete the transaction. Asmodee is a leading international publisher and distributor for board games, trading cards and digital board games. The day one consideration paid amounts to approximately EUR 2.75 billion in total. An additional consideration amounting to approximately EUR 360 million can be paid in B shares of Embracer to certain minority shareholders in the future, subject to fulfillment of certain conditions.

Embracer Group publishes Interim Report Q3 2021: OPERATIONAL EBIT INCREASED 86% TO SEK 1,119 MILLION

THIRD QUARTER, OCTOBER–DECEMBER 2021 (COMPARED TO OCTOBER–DECEMBER 2020)

• Net sales increased by 135% to SEK 5,085.2 million (2,168.1).
• Net sales for business area Games increased by 175% to SEK 3,725.5 million (1,355.5). THQ Nordic SEK 352.3 million (379.8), Koch Media Publishing SEK 727.6 million (496.9), Coffee Stain SEK 175.0 million (99.2), Saber Interactive SEK 476.4 million (307.0), DECA Games SEK 661.2 million (72.7), Gearbox Entertainment SEK 455.4 million (-) and Easybrain SEK 877.7 million (-).
• Organic growth in constant currency for business area Games amounted to 16%. Pro forma growth in constant currency for business area Games amounted to 19%.
• Net sales for business area Partner Publishing/Film increased by 67% to SEK 1,359.7 million (812.6).
• EBITDA increased by 70% to SEK 1,489.9 million (878.7), corresponding to an EBITDA margin of 29% (41%).
• Operational EBIT increased by 86% to SEK 1,119.2 million (603.1) corresponding to an Operational EBIT margin of 22% (28%).
• Cash flow from operating activities amounted to SEK 1,050.7 million (840.4). Investments in intangible assets amounted to SEK 968.7 million (557.7). Free cash flow before change in working capital amounted to SEK 370.4 million (315.7).
• Adjusted earnings per share was SEK 0.76 (0.53). Adjusted earnings per share excluding financial exchange gains and losses and discount interest effects on provisions was SEK 0.87 (0.55).
• Total number of game development projects increased 44% to 216 (150).
• Total headcount increased by 66% to 9,524 (5,730) and the total number of game developers increased by 69% to 7,824 (4,636). Organic growth for internal headcount in the Group was 16%.

Invitation to presentation of Embracer Group’s Q3 report

Embracer Group hereby invites you to a presentation in connection with the publication of the interim report for the third quarter, the period October-December 2021. The report will be published at 06.00 (CET) on February 17th and available as of this time at: www.embracer.com

Announcement from Embracer Group’s extra general meeting

The extra general meeting of Embracer Group AB (“Embracer” or the “Company”) was held today on 7 January 2022, and the following resolutions were passed by the meeting. 

Five announced acquisitions are estimated to contribute SEK 246-316 million in operational EBIT during FY22/23 and SEK 519-689 million during FY23/24

Embracer Group AB (“Embracer”) and its subsidiaries have as previously communicated on 21 December 2021 entered into five acquisition agreements (the “Transactions”). The Transactions improve the group's capabilities within game publishing and development, work-for-hire, comics publishing, film & TV production. The acquired businesses are expected to contribute to operational EBIT in the range of SEK 246-316 million during FY 22/23 and SEK 519-689 during FY 23/24. These figures exclude any commercial synergies or planned M&A.

Embracer Group enters into an agreement to acquire Dark Horse and forms the tenth operative group

Embracer Group AB ("Embracer") has today entered into an agreement to acquire Dark Horse Media, LLC (“Dark Horse”), a leading entertainment company. Post-closing, Dark Horse will become the tenth operative group of the Embracer group. Through the acquisition, Embracer strengthens its transmedia capabilities by adding expertise in content development, comics publishing, and film & TV production. Dark Horse owns or controls more than 300 intellectual properties, many of which are attractive for future transmedia exploitation, including the creation of new video games. Dark Horse founder and CEO Mike Richardson will continue to lead the company together with existing management.

Invitation to Embracer Group’s presentation on acquisitions at 09:00 (CET)

Embracer Group hereby invites you to a presentation regarding this morning's press releases announcing a number of acquisitions. 

Embracer Group enters into agreement to aquire Spotfilm Networx

Embracer Group AB (”Embracer”), through its wholly owned subsidiary Koch Media GmbH, has acquired 100 percent of the shares in Spotfilm Networx GmbH (“Spotfilm Networx”) from its five current owners. Spotfilm Networx is the leading Advertising-based Video on Demand (AVOD) channel network in Germany, located in Berlin.

Embracer Group enters into agreement to acquire DIGIC

Embracer Group AB (”Embracer”), through its operative group Saber Interactive[1], has entered into an agreement to acquire 100 percent of the shares in Hungary based DIGIC Holdings Kft (“DIGIC”) from its current owners, including founder Alex Rabb. DIGIC is an animation studio founded by Alex Rabb and late Hollywood legend Andrew G. Vajna. Embracer adds a highly skilled team of close to 400 people through the acquisition, with a strong track record within commercial trailers and cinematics for best-selling game titles as well as animations for streaming media. The closing of the purchase is subject to various conditions including, without limitiation, approval of the transaction by lenders of DIGIC and of the Hungarian Ministry of Innovation and Technology.

[1] Acquired through Embracer's wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive operative group.

Embracer Group acquires Shiver Entertainment

Embracer Group AB (”Embracer”), through its wholly owned subsidiary Saber Interactive Inc., has acquired 100 percent of the shares in U.S based Shiver Entertainment Inc. (“Shiver”) from its founders. Shiver is a game development studio founded by industry veterans John Schappert and Jason Andersen. Through the acquisition, Saber Interactive adds a highly skilled team of nearly 20 people, focusing on game development, co-development, and porting projects across platforms and genres.

Embracer Group enters into agreement to acquire Perfect World Entertainment

Embracer Group AB (“Embracer”) has entered into an agreement to acquire 100 percent of the shares in Perfect World North America Corporation and Perfect World Publishing B.V. (collectively “Perfect World Entertainment” or “PWE”)[1], from Perfect World Europe B.V. (“Perfect World”). PWE is a video game developer and publisher for PC and consoles, including PWE Publishing and Cryptic Studios. The acquisition adds on a total of 237 employees. The purchase price for the acquisition comprises a one-time payout of USD 125 million, divided into of USD 60 million in cash and USD 65 million in B shares of Embracer subject to consideration adjustment at closing. The purchase price net of cash amounts to USD 103 million.

[1] Acquired through Embracer and will be part of the Gearbox Entertainment operative group.

NOTICE OF EXTRA GENERAL MEETING IN EMBRACER GROUP AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the “Company”) are hereby invited to the extra general meeting on Friday 7 January 2022 at 10.00 CET at Baker McKenzie's premises at Vasagatan 7 in Stockholm.

Embracer Group successfully completed a directed issue of 69,000,000 new B shares raising proceeds of roughly SEK 6 billion

Embracer Group announces intention to carry out a directed share issue of approximately SEK 5.5 billion through new B shares

Invitation to Embracer Group’s presentation about the acquisition of Asmodee at 08:15 (CET)

Embracer Group hereby invites you to a presentation regarding today's press release headlined “Embracer Group intends to make a strategic acquisition of leading board gaming group Asmodee that would form the ninth operating group”.