Kingdom Come: Deliverance 2 brings ease at the finances of Embracer Group

Embracer Group, a major player in the gaming industry, recently released its Q3 earnings report for the fiscal year 2024/25. The report presents a mixed picture, with some segments showing declines while others have managed to grow.

Financial Overview

Net Sales: Embracer Group reported net sales of $685 million, a decrease of 3% compared to the same period last year. This figure includes a 7% organic growth.
Segment Performance:
- PC/Console Games: This segment saw a significant decline of 23%, with sales dropping to $241 million.
- Mobile Games: There was a slight increase of 2%, bringing sales to $155 million.
- Entertainment & Services: This segment performed well, with a 19% increase in sales, reaching $286 million.
EBIT: The company’s earnings before interest and taxes (EBIT) amounted to $59 million, a decrease of 305 million SEK.
Adjusted EBIT: Adjusted EBIT decreased by 11% to $133 million, corresponding to an adjusted EBIT margin of 16%.
Cash Flow: Cash flow from operating activities was $183 million, and free cash flow after changes in working capital amounted to $97 million.

Embracer Group’s CEO, Lars Wingefors, commented on the report, highlighting the successful spin-off and listing of Asmodee Group as a non-current asset. He emphasized the company’s strong foundation for future value creation and reassured investors about the company’s performance.

Kingdom Come: Deliverance 2 Shines Bright

One of the standout performers for Embracer Group has been Kingdom Come: Deliverance 2, developed by Warhorse Studios. The game has exceeded expectations, selling nearly 2 million copies in less than a month. It set six concurrent player records on Steam, peaking at over 250,000 simultaneous players.

Kingdom Come: Deliverance 2’s success is attributed to its high-quality production and the strong support from the gaming community. The game’s launch day saw over 1 million copies sold, quickly surpassing its predecessor in both sales and reviews.

Embracer Group is optimistic about the future, with a robust roadmap of new content and updates for Kingdom Come: Deliverance 2. The company believes that investing time and resources in high-quality titles is crucial for sustained success in the competitive gaming market.