THIRD QUARTER, OCTOBER-
(COMPARED TO OCTOBER-
> Net sales were
> EBITDA increased 59% to
> Operational EBIT rose 54% to
> The increase in EBITDA and Operational EBIT is mainly attributed to the sales growth in the Games business area and an improved gross margin within Games due to an increased share of revenue from digital sales and owned titles.
> Cash flow from operating activities before changes in working capital amounted to
> Cash flow from operating activities amounted to
> Earnings per share was
> Adjusted earnings per share was
Key performance Oct-Dec Oct-Dec Apr-Dec Apr-Dec Jan
indicators, Group 2019 2018 2019 2018 2018-Mar
2019
Net sales, SEK m 1,508.5 1,380.6 3,910.3 3,490.7 5,754.1
EBITDA, SEK m 518.4 326.4 1,326.1 748.1 1,592.6
Operational EBIT, 302.1 196.8 747.0 369.9 897.1
SEK m
EBIT, SEK m 91,0 152.1 248.8 295.4 574.6
Profit after tax, 33.6 114.2 151.1 212.7 396.8
SEK m
Cash flow from 552.0 360.1 1,219.6 721.1 1,440.0
operating
activities
before changes in
working capital,
SEK
m
Cash flow from 239.5 455.0 962.6 -120.6 1,356.4
operating
activities,
SEK m
Sales growth, % 9 441 12 720 1,034
EBITDA margin, % 34 24 34 21 28
Operational EBIT 20 14 19 11 16
margin, %
CEO Comments
OPERATIONAL EBIT INCREASED 54%TO
The Group had another stable quarter with growing profitability. Consolidated net sales were
EBITDA grew 59% to
ACQUISITIONS AND NEW STUDIOS
In December, I was excited to welcome
Amplifier Game Invest, which we acquired in August, 2019, is becoming an increasingly important vehicle for our investments into new IP-development. Starting today, they will officially become our fourth operative group. During and after the quarter, they founded two new studios together with senior game developers. These ventures are based on a new partnership model designed to attract top talents with incentives and commercial support from the Group, while leaving them full creative integrity. The new studios are River End Games in
Amplifier Game Invest made a follow-on investment into the Stavanger,
Finally, this morning, Koch Media entered into an agreement to acquire Voxler, the French development studio behind the "Let's Sing" series and other titles in the music games genre. Voxler has collaborated with Koch Media as an external development studio over the last 10 years. The purchase price for 100% of the shares was approximately
This brings the total number of wholly or majority owned development studios in the Group to 26 at the time of writing, compared to 10 one year ago and 20 at the end of the reporting period. At the end of 2019, the Group employed 2,258 internal and external game developers, which is a 52% increase compared to the corresponding quarter a year ago.
GAME DEVELOPMENT PIPELINE KEEPS GROWING
The new studio initiatives are long term investments in building new content and IP's that may become notable drivers of our organic growth in the future. Bear in mind that the development cycle for new games runs over several years and thus the contribution from these investments lies a few years down the road.
Currently, we have a strongest pipeline ever of 96 titles in development across the Group, of which 52 are yet to be announced.
I would like once again to emphasize that our priority is to put quality first across all our development projects. For the sake of all stakeholders, we should always take the time to build the best possible games. Looking ahead in the quarter ending March, the highlights will be release of Darksiders Genesis on consoles, Satisfactory update #3 and the release of Metro Exodus on Steam and the final DLC Sam's Story across all platforms. We are also happy to see that the movie Parasite, by Korean director
The ambition is still to have at least two
MAJOR POTENTIAL IN THE GROUP
The Group kept growing in terms of owned IP:s, development studios and employees.
We are now over 3,000 employees with 26 owned studios. There are strong dynamic forces in a Group where so much talent comes together. We have a great potential in developing collaborations within the Group, pooling ideas and solutions to recurring problems and sharing professional practices. We have still only just tapped on the potential to leverage the true potential of such collaboration. We have made good progress in building the parent company and improving our capabilities and are now better equipped than ever to harness the energy and creativity that is found across the Group. As we keep growing, we will be opening new career paths, providing best practice benchmarks as well as strengthening our sustainability framework - "Smarter business".
To conclude, I would like to send my thanks to all of our shareholders, customers, colleagues and business partners for contributing to the prosperity and success of our growing family. Our most exciting years are still ahead of us.
I hope to see you soon.
All the best from Värmland.
Founder & CEO
For additional information, please contact:
Tel: +46 708 471 978
E-mail: lars.wingefors@embracer.com
About
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