Asmodee, the renowned gaming company, has reported a significant increase in its annual results, meeting expectations set by CEO Lars Wingefors. The process of spinning off Asmodee is progressing as planned within this fiscal year.
Despite a 21.0% decrease in revenue to 8,552 million SEK (10,831), the company’s performance aligns closely with the Modular Finance analyst consensus of 9,064 million SEK. The organic sales growth stood at -14% (-2), showcasing a challenging market environment.
The operating profit reached 468 million SEK (-836), with an operating margin of 5.5%. Adjusted operating profit amounted to 1,207 million SEK (1,814), slightly below the anticipated 1,309 million SEK, resulting in an adjusted operating margin of 14.1% (16.7).
Earnings per share were reported at -0.32 SEK (-0.47), indicating a modest decline. The cash flow from operating activities was 444 million SEK (2,250), reflecting a shift towards a normalized operating capital cycle for Asmodee.
Looking ahead, Wingefors expressed optimism for improved performance in the second half of the year, despite anticipated delays. He highlighted growth expectations for Tabletop and Entertainment & Services segments, while acknowledging challenges in Mobile and PC/Console divisions due to higher user acquisition costs and weaker revenue development.
For the fiscal year 2024/25, the company anticipates lower annual profits due to confirmed or likely delays in significant game launches within the PC/Console segment. The highly anticipated release of “Kingdom Come: Deliverance II” is scheduled for February 11, 2025, contributing to future revenue streams.
The book value of developed games in the PC/Console category is projected to reach approximately 3.1 billion SEK (3.9 billion SEK in Q1) by the end of the fiscal year 2024/25. However, about 0.9 billion SEK of this value may be deferred to the next fiscal year or launched very late in Q4.
In a strategic move, Embracer announced the sale of its operational subsidiary Easybrain to Miniclip for around 12.9 billion SEK on a cash- and debt-free basis. This transaction aims to enhance Embracer’s financial position and align with evolving market dynamics in the mobile gaming sector. Wingefors emphasized Miniclip as the ideal strategic buyer to uphold Easybrain’s leadership in the ad-driven mobile gaming industry.
Overall, Embracer’s financial performance reflects a mix of challenges and opportunities, as the company navigates through industry shifts and strategic divestments to unlock future growth prospects. With a clear roadmap and strategic partnerships in place, Embracer remains poised for sustainable success in the dynamic gaming landscape.