Reported Earnings • May 21
Full year 2026 earnings released: kr32.76 loss per share (vs kr12.35 profit in FY 2025) Full year 2026 results: kr32.76 loss per share (down from kr12.35 profit in FY 2025). Revenue: kr16.6b (down 26% from FY 2025). Net loss: kr6.89b (down 371% from profit in FY 2025). Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to kr58.96, the stock trades at a forward P/E ratio of 36x. Average forward P/E is 10x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 39% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr74.76 per share. Recent Insider Transactions • Feb 17
Chief of Staff recently bought kr877k worth of stock On the 13th of February, Ian Gulam bought around 16k shares on-market at roughly kr55.36 per share. This transaction amounted to 71% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr14m more in shares than they have sold in the last 12 months. New Risk • Feb 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings are forecast to decline by an average of 58% per year for the foreseeable future. Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to kr54.47, the stock trades at a forward P/E ratio of 76x. Average forward P/E is 15x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 49% over the past three years. Announcement • Jan 29
Embracer Group AB (publ) to Report Fiscal Year 2026 Results on Jun 15, 2026 Embracer Group AB (publ) announced that they will report fiscal year 2026 results on Jun 15, 2026 Announcement • Jan 15
Embracer Group AB Appoints Lee Guinchard as Chief Operating Officer Embracer Group AB appointed Lee Guinchard as Chief Operating Officer and a member of the Executive Management Team. Lee Guinchard brings more than 30 years of leadership experience in the video game and entertainment industry. He has demonstrated strong operational execution and long-term franchise thinking through his leadership in the development and stewardship of The Lord of the Rings IP. As CEO of Embracer Freemode and Middle-earth Enterprises, he has played a central role in the group’s development. In his new additional role as Chief Operating Officer of Embracer, he will bring this expertise to the wider group as the company evolves into Fellowship Entertainment. Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment deteriorates as stock falls 33% After last week's 33% share price decline to kr60.84, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 14x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 62% over the past three years. Reported Earnings • Nov 14
Second quarter 2026 earnings released: kr0.096 loss per share (vs kr2.18 loss in 2Q 2025) Second quarter 2026 results: kr0.096 loss per share (improved from kr2.18 loss in 2Q 2025). Revenue: kr3.85b (down 19% from 2Q 2025). Net loss: kr20.0m (loss narrowed 96% from 2Q 2025). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 35% per year whereas the company’s share price has fallen by 32% per year. Announcement • Sep 30
Embracer Group AB (publ) to Report Fiscal Year 2026 Results on May 21, 2026 Embracer Group AB (publ) announced that they will report fiscal year 2026 results on May 21, 2026 Announcement • Sep 01
Embracer Group AB Announces Board Changes Embracer Group AB announced that as part of the preparations for the separation of Coffee Stain Group AB, Anton Westbergh is no longer part of the executive management team of Embracer. A Board of Directors for CSG, the parent company and the future listed entity, has also been appointed and formed. The Board comprises Jacob Jonmyren (Chair of the Board), Sara Börsvik, Henrik Tjärnström, Kicki Wallje-Lund, Anton Westbergh (CEO and board member) and Lars Wingefors. Recent Insider Transactions • Aug 26
Insider recently bought kr8.2m worth of stock On the 21st of August, Anton Westbergh bought around 98k shares on-market at roughly kr83.46 per share. This transaction amounted to 3.7% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr18m more in shares than they have sold in the last 12 months. Announcement • Aug 18
Embracer Group AB (publ), Annual General Meeting, Sep 18, 2025 Embracer Group AB (publ), Annual General Meeting, Sep 18, 2025, at 15:00 W. Europe Standard Time. Location: at varmlands museum, vastra torggatan 31, karlstad Sweden Recent Insider Transactions • Aug 17
Insider recently bought kr4.8m worth of stock On the 14th of August, Anton Westbergh bought around 63k shares on-market at roughly kr77.41 per share. This transaction amounted to 2.4% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr10m more in shares than they have sold in the last 12 months. Reported Earnings • Aug 14
Full year 2025 earnings released: EPS: kr12.35 (vs kr67.37 loss in FY 2024) Full year 2025 results: EPS: kr12.35 (up from kr67.37 loss in FY 2024). Revenue: kr22.4b (down 19% from FY 2024). Net income: kr2.54b (up kr15.9b from FY 2024). Profit margin: 11% (up from net loss in FY 2024). Revenue is forecast to stay flat during the next 2 years compared to a 2.0% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 41 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to kr76.60, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 16x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 68% over the past three years. Announcement • Jun 10
Embracer Group AB (Publ) Announces CEO Changes, Effective August 1, 2025 The Board of Directors of Embracer Group AB took the next step in the transformation process, appointing Phil Rogers as CEO of Embracer, effective as of 1 August 2025. The appointment of Phil Rogers, currently Deputy CEO of Embracer and CEO of the operative group Crystal Dynamics Eidos, will become effective as of 1 August 2025. Recent Insider Transactions • May 25
Chief of Staff recently bought kr349k worth of stock On the 22nd of May, Ian Gulam bought around 3k shares on-market at roughly kr106 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr5.4m more in shares than they have sold in the last 12 months. Reported Earnings • May 23
Full year 2025 earnings released: EPS: kr11.30 (vs kr91.65 loss in FY 2024) Full year 2025 results: EPS: kr11.30 (up from kr91.65 loss in FY 2024). Revenue: kr22.4b (down 47% from FY 2024). Net income: kr2.54b (up kr20.7b from FY 2024). Profit margin: 11% (up from net loss in FY 2024). Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 45 percentage points per year, which is a significant difference in performance. Reported Earnings • Feb 14
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: kr7.46b (down 38% from 3Q 2024). Net income: kr957.0m (up kr2.70b from 3Q 2024). Profit margin: 13% (up from net loss in 3Q 2024). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Announcement • Jan 24
Miniclip Group SA completed the acquisition of Easybrain Ltd from Embracer Group AB (publ) (OM:EMBRAC B). Miniclip Group SA entered into an agreement to acquire Easybrain Ltd from Embracer Group AB (publ) (OM:EMBRAC B) for $1.2 billion on November 14, 2024. A cash consideration of $1.2 billion will be paid by Miniclip Group SA. As part of consideration, $1.2 billion is paid towards common equity of Easybrain Ltd. is cash and debt free basis. As of January 17, 2025, regulatory approvals required to close the transaction have now been obtained. Closing of the transaction is expected to take place in the first months of 2025 and is conditional upon customary conditions including regulatory approvals.
Aream & Co acted as financial advisor for Embracer Group AB. Gregor Frizzell, Camilla Rogers, Sibel Yilmaz, Covington & Burling LLP acted as legal advisor for Embracer Group AB. Ernst & Young Global Limited acted as accountant for Embracer Group AB. Merrill Lynch International acted as financial advisor for Miniclip Group SA. Mike Turner, Sam Newhouse, David Little, Britton Dale Davis, Gail Crawford, Jennifer Archie, Robert Brown, Sarah Gadd, Karl Mah, Ghaith Mahmood, Charles Claypoole, Andrew P. Galdes and Pamela Reddy of Latham & Watkins LLP acted as legal advisor for Miniclip Group SA. KPMG International Cooperative acted as accountant for Miniclip Group SA. BofA Securities, Inc. acted as financial advisor to Miniclip Group SA.
Miniclip Group SA completed the acquisition of Easybrain Ltd from Embracer Group AB (publ) (OM:EMBRAC B) on January 23, 2025. Buy Or Sell Opportunity • Jan 14
Now 171% overvalued after recent price rise Over the last 90 days, the stock has risen 544% to kr188. The fair value is estimated to be kr69.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Meanwhile, the company became loss making. Recent Insider Transactions • Dec 18
Insider recently bought kr3.1m worth of stock On the 10th of December, Anton Westbergh bought around 100k shares on-market at roughly kr31.37 per share. This transaction amounted to 4.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr5.1m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Dec 13
Insider recently bought kr3.1m worth of stock On the 10th of December, Anton Westbergh bought around 100k shares on-market at roughly kr31.37 per share. This transaction amounted to 4.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr5.1m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 28
Insider recently bought kr2.0m worth of stock On the 25th of November, Anton Westbergh bought around 70k shares on-market at roughly kr27.92 per share. This transaction amounted to 2.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Nov 15
Second quarter 2025 earnings released: kr0.32 loss per share (vs kr0.47 loss in 2Q 2024) Second quarter 2025 results: kr0.32 loss per share (improved from kr0.47 loss in 2Q 2024). Revenue: kr8.66b (down 20% from 2Q 2024). Net loss: kr391.0m (loss narrowed 30% from 2Q 2024). Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 74 percentage points per year, which is a significant difference in performance. Announcement • Nov 14
Miniclip Group SA agreed to acquire Easybrain Ltd from Embracer Group AB (publ) (OM:EMBRAC B) for $1.2 billion. Miniclip Group SA agreed to acquire Easybrain Ltd from Embracer Group AB (publ) (OM:EMBRAC B) for $1.2 billion on November 14, 2024. A cash consideration of $1.2 billion will be paid by Miniclip Group SA. As part of consideration, $1.2 billion is paid towards common equity of Easybrain Ltd.
Closing of the transaction is expected to take place in the first months of 2025 and is conditional upon customary conditions including regulatory approvals.
Aream & Co acted as financial advisor for Embracer Group AB. Covington & Burling LLP acted as legal advisor for Embracer Group AB. Ernst & Young Global Limited acted as accountant for Embracer Group AB. Merrill Lynch International acted as financial advisor for Miniclip Group SA. Latham & Watkins LLP acted as legal advisor for Miniclip Group SA. KPMG International Cooperative acted as accountant for Miniclip Group SA. Announcement • Sep 20
Embracer Group AB (Publ) Announces Director Changes Embracer Group AB (publ) announced that Brian Ward was elected as new director. Cecilia Driving and David Gardner were not re-elected as directors. All decisions were made in accordance with the nomination committee's proposal. Reported Earnings • Aug 16
First quarter 2025 earnings released: kr1.80 loss per share (vs kr1.99 profit in 1Q 2024) First quarter 2025 results: kr1.80 loss per share (down from kr1.99 profit in 1Q 2024). Revenue: kr8.05b (down 23% from 1Q 2024). Net loss: kr2.18b (down 197% from profit in 1Q 2024). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 49 percentage points per year, which is a significant difference in performance. Reported Earnings • Jun 21
Full year 2024 earnings released: kr15.28 loss per share (vs kr4.17 profit in FY 2023) Full year 2024 results: kr15.28 loss per share (down from kr4.17 profit in FY 2023). Revenue: kr42.3b (up 12% from FY 2023). Net loss: kr18.2b (down kr22.6b from profit in FY 2023). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 45% per year whereas the company’s share price has fallen by 42% per year. Announcement • Jun 13
Take-Two Interactive Software, Inc. (NasdaqGS:TTWO) completed the acquisition of The Gearbox Entertainment Company, Inc. from Embracer Group AB (publ) (OM:EMBRAC B). Take-Two Interactive Software, Inc. (NasdaqGS:TTWO) entered into a definitive agreement to acquire The Gearbox Entertainment Company, Inc. from Embracer Group AB (publ) (OM:EMBRAC B) for approximately $460 million on March 27, 2024. The consideration consists entirely of newly issued shares of Take-Two common stock, valued at $460 million. The number of Take-Two shares will be calculated by dividing the purchase price by the average closing price per share on the Nasdaq Global Select Market during the five-trading day period ending on the trading day immediately prior to the closing date. The purchase price assumes a debt-free, cash-free company with a normalized level of net working capital (excluding cash) at the time of the closing of the acquisition. The acquisition is anticipated to be completed during the first quarter of Take-Two’s Fiscal Year 2025 (ended June 30, 2024) and is subject to the satisfaction of customary closing conditions, including applicable regulatory approvals. Gearbox will operate as a studio within 2K and will be led by Founder and CEO, Randy Pitchford, and his management team. Adam Turteltaub and Laura Acker of Willkie Farr & Gallagher LLP is serving as legal counsel ,KPMG acted as Financial advisor and Deloitte as Accountant to Take-Two . Goldman Sachs Bank Europe SE Sweden Bankfilial and Juno Capital Partners are acting as joint financial advisers and Fenwick is acting as legal counsel ,Ernst & Young acted as Accountant to Embracer Group in the transaction.
Take-Two Interactive Software, Inc. (NasdaqGS:TTWO) completed the acquisition of The Gearbox Entertainment Company, Inc. from Embracer Group AB (publ) (OM:EMBRAC B) on June 11, 2024. Consideration was paid as 2.8 million shares of Take-Two Interactive. Reported Earnings • May 24
Full year 2024 earnings released: kr15.28 loss per share (vs kr4.17 profit in FY 2023) Full year 2024 results: kr15.28 loss per share (down from kr4.17 profit in FY 2023). Revenue: kr42.2b (up 12% from FY 2023). Net loss: kr18.2b (down kr22.6b from profit in FY 2023). Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 39% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to kr28.75, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 9x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 77% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr53.86 per share. New Risk • Apr 08
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (11% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.6% net profit margin). Shareholders have been diluted in the past year (6.4% increase in shares outstanding). Announcement • Mar 28
Take-Two Interactive Software, Inc. (NasdaqGS:TTWO) entered into a definitive agreement to acquire The Gearbox Entertainment Company, Inc. from Embracer Group AB (publ) (OM:EMBRAC B) for $460 million. Take-Two Interactive Software, Inc. (NasdaqGS:TTWO) entered into a definitive agreement to acquire The Gearbox Entertainment Company, Inc. from Embracer Group AB (publ) (OM:EMBRAC B) for $460 million on March 27, 2024. The consideration consists entirely of newly issued shares of Take-Two common stock, valued at $460 million. The number of Take-Two shares will be calculated by dividing the purchase price by the average closing price per share on the Nasdaq Global Select Market during the five-trading day period ending on the trading day immediately prior to the closing date. The purchase price assumes a debt-free, cash-free company with a normalized level of net working capital (excluding cash) at the time of the closing of the acquisition. The acquisition is anticipated to be completed during the first quarter of Take-Two’s Fiscal Year 2025 (ended June 30, 2024) and is subject to the satisfaction of customary closing conditions, including applicable regulatory approvals. Gearbox will operate as a studio within 2K and will be led by Founder and CEO, Randy Pitchford, and his management team. Willkie Farr & Gallagher LLP is serving as legal counsel to Take-Two. KPMG and Deloitte are providing advice on financial and tax matters. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to kr18.71, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 84% over the past three years. Announcement • Mar 21
Embracer Group AB Announces Appointment of Nomination Committee Embracer Group AB (publ) announced appointment of Nomination Committee for its Annual General Meeting 2024. In accordance with the decision of the Annual General Meeting, Embracer Group’s Nomination Committee shall consist of five members. The Nomination Committee shall include members selected by each of the five large shareholders in terms of voting rights who wish to participate in the committee. The members of the Nomination Committee have now been appointed. The following members have been appointed: Per Fredriksson, appointed by Lars Wingefors AB, is the Chair of the committee. Ola Åhman, appointed by Savvy Gaming Group. Henrik Olsson, appointed by Canada Pension Plan Investment Board. Magnus Tell, appointed by Alecta. Anna Henricsson, appointed by Handelsbanken Fonder. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to kr16.28, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 9x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 85% over the past three years. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to kr16.89, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 85% over the past three years. Announcement • Feb 17
Embracer Group AB (publ) to Report Fiscal Year 2024 Results on Jun 20, 2024 Embracer Group AB (publ) announced that they will report fiscal year 2024 results on Jun 20, 2024 Reported Earnings • Feb 17
Third quarter 2024 earnings released: kr1.44 loss per share (vs kr1.39 profit in 3Q 2023) Third quarter 2024 results: kr1.44 loss per share (down from kr1.39 profit in 3Q 2023). Revenue: kr12.1b (up 3.7% from 3Q 2023). Net loss: kr1.74b (down 215% from profit in 3Q 2023). Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 48% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr21.95, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Entertainment industry in Europe. Total loss to shareholders of 78% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr43.67 per share. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to kr24.66, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Entertainment industry in Europe. Total loss to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr43.05 per share. Reported Earnings • Nov 17
Second quarter 2024 earnings released: kr0.47 loss per share (vs kr2.21 profit in 2Q 2023) Second quarter 2024 results: kr0.47 loss per share (down from kr2.21 profit in 2Q 2023). Revenue: kr12.4b (up 16% from 2Q 2023). Net loss: kr562.0m (down 124% from profit in 2Q 2023). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has fallen by 35% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to kr21.56, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 13x in the Entertainment industry in Europe. Total loss to shareholders of 75% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr41.90 per share. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr21.61, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Entertainment industry in Europe. Total loss to shareholders of 74% over the past three years. Announcement • Sep 12
Embracer Reportedly Weighs Options for Gearbox Entertainment Embracer Group AB (publ) (OM:EMBRAC B) is considering options for its U.S. game developer The Gearbox Entertainment Company, LLC including a sale as Europe’s largest gaming company looks to shore up its finances, three people familiar with the matter told Reuters. The maker of a new Tomb Raider video game, whose shares are traded in Stockholm, is working with The Goldman Sachs Group Inc. (NYSE:GS) and Aream & Co to explore a sale, the people said. Embracer is weighing selling the unit, which is known for first-person shooter game Borderlands, after receiving interest from third parties, two of the people said. Officials from Embracer and Goldman Sachs declined to comment. Aream did not respond to requests for comment. Embracer shares turned positive and spiked as much as 5% higher following the news, closing at SEK 27.40 on September 11, 2023. The sources, who requested anonymity as the matter is confidential, cautioned a deal may not happen. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to kr24.57, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 28x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 70% over the past three years. New Risk • Aug 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 12% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings are forecast to decline by an average of 12% per year for the foreseeable future. Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (8.3% increase in shares outstanding). Reported Earnings • Aug 18
First quarter 2024 earnings released First quarter 2024 results: Revenue: kr10.5b (up 32% from 1Q 2023). Net income: kr2.25b (up kr2.42b from 1Q 2023). Profit margin: 21% (up from net loss in 1Q 2023). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Recent Insider Transactions • Jul 28
Interim COO & Director recently bought kr29m worth of stock On the 25th of July, Matthew Karch bought around 1m shares on-market at roughly kr29.22 per share. This transaction amounted to 64% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth kr142m. Matthew has been a buyer over the last 12 months, purchasing a net total of kr313m worth in shares. Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr29.58, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 26x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 58% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr46.78 per share. Announcement • Jul 14
Embracer Group AB (publ) to Report Q2, 2023 Results on Aug 17, 2023 Embracer Group AB (publ) announced that they will report Q2, 2023 results on Aug 17, 2023 Announcement • Jun 29
Embracer Group AB (publ), Annual General Meeting, Sep 21, 2023 Embracer Group AB (publ), Annual General Meeting, Sep 21, 2023. Agenda: To elect PwC as new auditor. Reported Earnings • Jun 24
Full year 2023 earnings released: EPS: kr4.17 (vs kr1.08 in FY 2022) Full year 2023 results: EPS: kr4.17 (up from kr1.08 in FY 2022). Revenue: kr37.7b (up 119% from FY 2022). Net income: kr4.45b (up 356% from FY 2022). Profit margin: 12% (up from 5.7% in FY 2022). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 26% per year. Recent Insider Transactions • Jun 16
Co-Founder & CEO of Koch Media recently bought kr4.3m worth of stock On the 13th of June, Klemens Kundratitz bought around 165k shares on-market at roughly kr25.93 per share. This transaction amounted to 7.3% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth kr142m. Insiders have collectively bought kr290m more in shares than they have sold in the last 12 months. Announcement • Jun 14
Embracer Group Announces Management Changes Embracer Group AB has appointed Matthew Karch as interim Chief Operating Officer. In addition, Phil Rogers, has been appointed interim Chief Strategy Officer, a newly created position. Both will join Embracer Group’s Executive Management Team. Matthew Karch will resign as board member of Embracer Group at the annual general meeting 2023 and resign as CEO of Saber Interactive immediately. Phil Rogers will remain as CEO of Crystal Dynamics – Eidos. Matthew Karch, new interim Chief Operating Officer, and Phil Rogers, new interim Chief Strategy Officer, will co-lead the planning and implementation of the comprehensive restructuring program, presented by Embracer Group on June 13, 2023, in close collaboration with management across operative groups. Matthew Karch is currently a board member of Embracer Group but will resign from this position at the annual general meeting 2023. Phil Rogers is currently the CEO of the operative group Crystal Dynamics – Eidos and will remain in that position along with the new interim role. Effective June 13, 2023, the Group Executive Management consists of Lars Wingefors, CEO, Johan Ekström, CFO and Deputy CEO, Ian Gulam, Chief of Staff, Legal & Governance, Careen Yapp, Chief Strategic Partnerships Officer, Matthew Karch, Chief Operating Officer (interim) and Phil Rogers, Chief Strategy Officer (interim). New Risk • Jun 09
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 500% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (16% average weekly change). Minor Risks Large one-off items impacting financial results. Shareholders have been diluted in the past year (11% increase in shares outstanding). Valuation Update With 7 Day Price Move • May 31
Investor sentiment deteriorates as stock falls 41% After last week's 41% share price decline to kr24.56, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 20x in the Entertainment industry in the United Kingdom. Total loss to shareholders of 55% over the past three years. Recent Insider Transactions • May 26
Independent Director recently bought kr558k worth of stock On the 24th of May, Jacob Jonmyren bought around 25k shares on-market at roughly kr22.32 per share. This transaction amounted to 60% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • May 25
Full year 2023 earnings released Full year 2023 results: Revenue: kr38.1b (up 96% from FY 2022). Net income: kr4.45b (up kr8.73b from FY 2022). Profit margin: 12% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 67 percentage points per year, which is a significant difference in performance. Board Change • May 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. Director Matthew Karch was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Feb 17
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: kr13.0b (up 130% from 3Q 2022). Net income: kr1.52b (up kr2.80b from 3Q 2022). Profit margin: 12% (up from net loss in 3Q 2022). Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 112 percentage points per year, which is a significant difference in performance. Buying Opportunity • Feb 04
Now 21% undervalued Over the last 90 days, the stock is up 5.8%. The fair value is estimated to be kr68.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 56% over the last 3 years. Meanwhile, the company became loss making. Announcement • Feb 01
Embracer Group Appoints Careen Yapp as Chief Strategic Partnerships Officer Embracer Group AB has appointed Careen Yapp to the newly created position of Chief Strategic Partnerships Officer. Careen will serve as part of the Group Executive Management Team. Onwards the Group Executive Management will thus consist of Lars Wingefors, CEO, Johan Ekström, CFO and Deputy CEO, Ian Gulam, Chief of Staff, Legal & Governance and Careen Yapp, Chief Strategic Partnerships Officer. Careen brings more than twenty years of technology and entertainment experience to her new role, including executive business development and licensing positions at Sony Computer Entertainment, Konami Digital Entertainment and others. She joins EmbracerGroup from Google Stadia where she led the strategic direction and pursuit of global content partnerships for Stadia and entry point partnerships for Immersive Stream for Games. Prior to Google, Careen led business development and account management at Gaikai, a division of Sony Computer Entertainment. As Chief Strategic Partnership Officer, Careen will be responsible for aligning strategic Group partnership objectives with each operative group to drive Group-wide results. While maintaining the culture of the decentralized operating model, Careen will work together with the Group Executive Management Team and the operative groups to shape Group partnerships, lead business development at group level as well as drive business synergies and collaborations across the group. Announcement • Jan 10
Embracer Group AB (Publ) Announces Nomination Committee Appointment for Company's Annual General Meeting 2023 Embracer Group AB (publ) announced that the members of the Nomination Committee have now been appointed based on the ownership structure as of 30 November 2022. The following members have been appointed: Per Fredriksson, appointed by Lars Wingefors AB, is the Chair of the committee; Michael Levy, appointed by S3D Media Inc.; Ola Åhman, appointed by Savvy Gaming Group; Lennart Francke, appointed by Swedbank Robur Fonder; Henrik Olsson, appointed by Canada Pension Plan Investment Board. Reported Earnings • Nov 18
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr10.8b (up 180% from 2Q 2022). Net income: kr2.37b (up kr3.09b from 2Q 2022). Profit margin: 22% (up from net loss in 2Q 2022). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 147 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 19
First quarter 2023 earnings released First quarter 2023 results: Revenue: kr8.08b (up 108% from 1Q 2022). Net loss: kr167.0m (loss narrowed 72% from 1Q 2022). Over the next year, revenue is forecast to grow 65%, compared to a 29% growth forecast for the Entertainment industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 152 percentage points per year, which is a significant difference in performance. Reported Earnings • Jul 12
Full year 2022 earnings released Full year 2022 results: Revenue: kr0 (down 100% from FY 2021). Net loss: kr4.28b (down kr4.56b from profit in FY 2021). Profit margin: (down from 2.8% in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 142 percentage points per year, which is a significant difference in performance. Reported Earnings • May 20
Full year 2022 earnings released: kr3.94 loss per share (vs kr0.36 profit in FY 2021) Full year 2022 results: kr3.94 loss per share (down from kr0.36 profit in FY 2021). Revenue: kr19.7b (up 89% from FY 2021). Net loss: kr4.28b (down kr4.56b from profit in FY 2021). Over the next year, revenue is forecast to grow 82%, compared to a 32% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 148 percentage points per year, which is a significant difference in performance. Recent Insider Transactions • Mar 06
Director recently bought kr17m worth of stock On the 3rd of March, Matthew Karch bought around 237k shares on-market at roughly kr70.00 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold kr48m more in shares than they bought in the last 12 months. Announcement • Mar 01
Embracer Group AB (publ) to Report Q3, 2023 Results on Feb 16, 2023 Embracer Group AB (publ) announced that they will report Q3, 2023 results on Feb 16, 2023 Reported Earnings • Feb 18
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: kr1.26 loss per share (down from kr0.23 loss in 3Q 2021). Revenue: kr5.76b (up 127% from 3Q 2021). Net loss: kr1.29b (loss widened kr1.10b from 3Q 2021). Revenue exceeded analyst estimates by 25%. Over the next year, revenue is forecast to grow 88%, compared to a 40% growth forecast for the industry in the United Kingdom. Recent Insider Transactions • Jan 02
CEO & Founder of DECA Games recently sold kr74m worth of stock On the 29th of December, Ken Go sold around 800k shares on-market at roughly kr93.12 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr64m more than they bought in the last 12 months. Reported Earnings • Nov 18
Second quarter 2022 earnings released The company reported a mediocre second quarter result with weaker earnings and weaker control over costs, although revenues improved. Second quarter 2022 results: Revenue: kr3.92b (up 48% from 2Q 2021). Net loss: kr721.9m (down 417% from profit in 2Q 2021). Reported Earnings • Aug 21
First quarter 2022 earnings released: kr1.22 loss per share (vs kr0.25 profit in 1Q 2021) The company reported a mediocre first quarter result with weaker earnings and weaker control over costs, although revenues improved. First quarter 2022 results: Revenue: kr3.90b (up 68% from 1Q 2021). Net loss: kr605.8m (down kr696.9m from profit in 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Recent Insider Transactions • Aug 21
Independent Director recently bought kr485k worth of stock On the 19th of August, Ulf Hjalmarsson bought around 3k shares on-market at roughly kr194 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought kr301k more in shares than they have sold in the last 12 months.