
Embracer misses quarterly profit forecast on higher costs, weak box office
Feb 13 (Reuters) - Swedish games developer Embracer's (EMBRACb.ST), opens new tab third-quarter operating profit came below market expectations on Thursday, as higher user acquisition costs in mobile games and weaker-than-expected box office performance weighed on results.
WHY IT'S IMPORTANT
Embracer, like other gaming groups, benefited from growing demand for video games during COVID-19 lockdowns, but has since been hit by development delays, falling demand and poor reception for some of its new titles.
In recent years, Embracer has begun to divest some of its studios as part of restructuring efforts aimed at reducing costs and managing debt, and is charting a new course by splitting into three publicly traded entities.
The Swedish group owns more than a hundred studios worldwide and is known for popular game franchises, such as Tomb Raider, The Lord of the Rings and Kingdom Come: Deliverance.
KEY QUOTES
"The industry is still in a consolidation phase where there are layoffs driven by lack of capital and new technology tools in efficiency progress... We will make sure we are adapting to the changes in the industry and consumer demands," CEO Lars Wingefors told Reuters.
"Delays are always part of the industry, and we will give (games) more time if needed. For 'Kingdom Come: Deliverance II', for example, we delayed from releasing in November to now in February, and I think that three months gave a much more polished, bug-free experience for players", Wingefors added.
BY THE NUMBERS
The owner of the Tomb Raider franchise said its adjusted operating profit fell 11% to 1.18 billion Swedish crowns ($109.05 million) in the quarter through December, lagging analysts' forecast of 1.73 billion crowns seen in a company-provided consensus, opens new tab.
Embracer's PC/Console games segment fell 23% to 2.6 billion crowns from 3.38 billion a year ago.
Looking into the upcoming three financial years, Embracer said it has 10 AAA games under development, of which eight are from internal studios and two from external studios.
($1 = 10.8210 Swedish crowns)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
an hour ago
- Reuters
China's imports of major commodities hiccup in May
LAUNCESTON, Australia, June 9 (Reuters) - China's imports of major commodities lost momentum in May, with crude oil, coal, iron ore and copper all recording declines amid concerns about growth in the world's second-biggest economy. Only imports of natural gas showed any improvement, with May's 10.11 million metric tons slightly ahead of the 9.67 million in April, although they were still down 11% from a year earlier, according to customs data released on Tuesday. Crude oil arrivals dropped to 10.97 million barrels per day (bpd) in May, down 6.2% from April's 11.69 million bpd and also below the 12.1 million bpd recorded for March, which was the strongest month since August 2023. Iron ore imports slipped to 98.13 million tons in May from 103.14 million tons in April, and were also weaker than the 102.03 million from May last year. Imports of all grades of coal were 36.04 million tons in May, down 4.7% from April's 37.83 million tons and 17.8% weaker than the 42.82 million tons in May 2024. Unwrought copper imports were 427,000 tons in May, down 2.5% from the 438,000 tons in April and also below the 514,000 tons from the same month a year earlier. On the surface the decline in imports of major commodities looks ominous for China as the world's biggest buyer of natural resources faces an ongoing trade war with the United States and still sluggish growth at home, especially in the key residential construction sector. But there is always a risk of reading too much into monthly numbers, which can be quite volatile and are also often driven by price moves during the period when cargoes were arranged. Crude oil is a good example of this. China's imports were weak in January and February, with cargoes delivered in these two months having been bought against a backdrop of rising prices, with benchmark Brent futures rallying from early December to a peak of $82.63 a barrel on Jan. 15. But oil prices started sliding thereafter, with Brent dropping to a low of $58.40 a barrel by April 9. Therefore, the rebound in China's crude imports in March and April came amid a declining price trend when the cargoes would have been bought. However, May cargoes would have been arranged when prices were once again trending higher. It's also worth noting that China's imports of Russian and Iranian crude have also been volatile in recent months, dropping as new U.S. sanctions on vessels were imposed and then recovering as traders worked out ways around the measures. This pattern seems likely to have continued, with commodity analysts Kpler estimating China's imports of Iranian oil at 743,500 bpd in May, but also forecasting a sharp rise to 1.48 million bpd in June. Iron ore imports may also have been impacted by price moves, with the price rising modestly over April, the time when most May-arriving cargoes would have been booked. The Singapore Exchange contract reached a recent high of $101.80 a ton on May 14, and has since moderated to end at $96.26 on June 6. While the price moves are modest, the small decline may encourage some buying by China's steel mills, especially given the prevailing view that Beijing will launch new stimulus efforts in coming weeks to boost the economy. Copper imports are also likely reflecting dynamics on global markets rather than the domestic situation in China. China's imports have trended weaker and are now down 6.7% for the first five months of 2025 compared to the same period last year. But physical copper has been shifting to the United States as market players expect President Donald Trump to impose a tariff on imports of the industrial metal. U.S. demand has bolstered the premium of copper for delivery to the United States, and drawn metal away from China. While the London price has been volatile and driven by news reports on what Trump may or may not do, the trend has been to higher prices, with an increase from an April 9 low of $8,105 a ton to $9,701 in early Asian trade on Monday. Coal is the major commodity where China's domestic prices and supply have driven weakness in imports, with strong production and soft local prices cutting the need for imports. Seaborne thermal coal prices have dropped to four-year lows in response, and there are some early signs that demand is picking up, but it will likely take further declines to spark any meaningful interest in boosting imports. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. (The views expressed here are those of the author, a columnist for Reuters.)

The National
3 hours ago
- The National
Michelle Mone makes 'millions in profits' after selling Glasgow townhouses
The Scottish Mail on Sunday reports that Baroness Mone sold a £19m London townhouse and £6.8m Lady M Yacht last year. It comes after Glasgow-born Mone and her billionaire husband Doug Barrowman had £75m worth of assets frozen by the National Crime Agency (NCA). The couple are at the centre of a fraud probe over the firm PPE Medpro, controlled by Barrowman, that was awarded £203m worth of UK Government contracts through a 'VIP lane' during the Covid-19 pandemic. READ MORE: Supreme Court's sex ruling faces legal tests – will they succeed? In November 2023, Mone finally admitted her involvement with PPE Medpro for the first time, after years of denying any links to the company. It then emerged Barrowman was reportedly paid at least £65m from PPE Medpro's profits, later transferring £29m into a trust for Mone and her three adult children. Several properties were frozen under the Proceeds of Crime Act in 2023. And now, Mone has reportedly sold her Glasgow homes. The Mail on Sunday reports that there is no suggestion any of the property sales breached any existing orders put in place by the NCA. One townhouse in Glasgow's plush Park Circus was bought by Barrowman's Knox business group for £1.7m in 2020. The couple have now reportedly sold this to a photographer for £2m last year. Another nearby townhouse was sold for £2.8m, allegedly to a Scottish musician, who was not named. It was bought in July 2020 for just over £1.4m. A spokesperson for the NCA confirmed an investigation is still ongoing into PPE Medpro. 'The NCA opened an investigation in May 2021 into suspected criminal offences committed in the procurement of PPE contracts by PPE Medpro,' they said. 'This ongoing investigation remains a priority for the agency. READ MORE: Scottish independence 'already begun as UK political culture diverges' 'Investigations must pursue all reasonable lines of enquiry. In serious economic crime investigations these lines of enquiry can be incredibly complex – from worldwide financial tracing exercises to the need to examine large volumes of digital material. 'In such cases it can take considerable time to ensure that a thorough, independent and objective investigation is conducted.' PPE Medpro is also being sued by the Department of Health and Social Care, amid claims that the gown supplied by the firm were not fit for use. We previously told how Mone accused the NCA of "smearing [her] as a criminal".

South Wales Argus
4 hours ago
- South Wales Argus
Friars Walk Newport says Home Store only temporary
When the new Home Store was announced to be taking over the old Debenhams unit in Friars Walk, Newport, earlier last month, shoppers were understandably delighted. The unit stood empty since the collapse of the national chain four years ago and after a being used as a vaccination centre during Covid, and until April, there was no sign of life in the building. But since its opening, some shoppers say they have been left disappointed by the replacement. It may be part of the signage advertising the once empty unit, but the phrase 'bring this space to life' emblazoned above the front doors fills shoppers with anticipation upon entering. The new Home Store sells a range of kitchen supplies, storage, carpets and electricals. However, concerns have been raised about the appearance of the store which internally has all the same fixings from the previous Debenhams shop and signage from brands such as Wallis or Urban Decay, which are not part of this operation. Signs for brands that were on sale in Debenhams are still on display in the new Home Store (Image: NQ) Instead, shoppers are met with piles of toilet role for sale, cleaning items and Tupperware. With initial reports leading shoppers to believe that the store would be a furniture store, the change in direction has left some feeling increasingly disappointed. But Friars Walk has taken to reassuring customers on the store's purpose Inside the new Home Store in Friars Walk, Newport (Image: NQ) A spokesperson for Friars Walk said: 'Home Store opened its doors in May as a temporary let whilst we continue to look for a more permanent tenant to fill the space; in the meantime, the doors are open, the lights are on and it's an additional offer for customers in the city.' There is a consensus among shoppers: they are left unsatisfied. With zero online presence it's hard to find anything out about the business until you visit, but users have taken to social media to express their displeasure with the store's allocation to the unit. Many Facebook users have expressed their distaste for the shop, on posts concerned about its purpose. User Eleanor Fynn-Goggin described how they simply "walked in and walked straight back out". Other users such as Graham Shrewsbury believe that the Debenhams signage should stay, as a reminder of "the wonderful stores we have lost that now sell junk". One reader, who calls themselves chezzajo, on a previous Argus article announcing the store's opening said: 'It's not a furniture store. It sells cheap, tacky goods with false discounts.' The Argus has made numerous attempts to meet with the manager of Home Store but so far our attempts have been unsuccessful.