Embracer Group presents impressive business figures

the Embracer Groupa Swedish media company and major video game publisher, has its business figures for the quarter July through September 2022. This is a great achievement for many gaming brands, but the report also shows the immense impact that the numerous buyouts have at Embracer. The group just this year large parts of Square Enix bought up, which are responsible for Tomb Raider, among other things. Also the “Dead Island” creators and gearbox, responsible for Borderlands, belong to the Swedes. According to the financial report, the company increased its sales compared to the previous year 190 percent increase and thus more than double. And the Swedish company is certainly far from having reached its goal.

Who is the Embracer Group anyway?

Embracer is an inconspicuous Swedish media group and game publisher that has become increasingly powerful over the past few years. Just a few months ago, for example, the Swedes bought a large part of Square Enix, which is known for Tomb Raider and Deus Ex.

Gearbox, the makers of Borderlands and THQ Nordic, known for Biomutant and Darksiders, among other things, now also belong to the Swedish parent company. However, Embracer isn’t just limited to video games, the group basically runs a cross-media strategy that also includes films, TV series, comics and much more.

It was not until August that the news caused a stir that the company had bought many of the rights to “Lord of the Rings”. And there is also interest in a cooperation with Marvel. It should also be an important part of the corporate strategy to finance primarily small and medium-sized game projects and to bring back old brands.

These are the figures from the annual report

But now let’s get to the actual figures from the annual report, SEK does not stand for the special task force, but the Swedish currency “crowns”:

• Net sales: SEK 9.57 billion (EUR 871.7 million), 190% more than last year (35% organic)
• of which PC and console games: 4.1 billion SEK (370 million euros), 107% more than last year
• of which mobile games: 1.44 billion SEK (131 million euros), 67% more than in the previous year

Those are impressive numbers considering the report covers a period of time riddled with crises. Among other things, Embracer blames the PC and console division for the good numbers, with the release of the reboot of the “Saints Row” series being particularly emphasized. However, it also means in this regard that the reception of the game in the specialist press and among fans was not really satisfied.

Impressive numbers with caveats

It’s also worth noting that the 190 percent year-over-year growth is largely due to various acquisitions. Embracer only took over Square Enix, the publishers of Tomb Raider and Deus Ex, in the summer. Actual organic growth is 35 percent.

The mobile division’s comparatively weak but still presentable results are attributed by Embracer to “the looming recession and likely some lingering impact of the changes to IDFA.” Nevertheless, the business, which is often based on advertising revenue and free-to-play, is profitable.