THIRD QUARTER, OCTOBER-
- Net sales increased by 135% to
SEK 5,085.2 million (2,168.1). - Net sales for business area Games increased by 175% to
SEK 3,725.5 million (1,355.5). THQ NordicSEK 352.3 million (379.8), Koch Media PublishingSEK 727.6 million (496.9), Coffee StainSEK 175.0 million (99.2), Saber InteractiveSEK 476.4 million (307.0), DECA GamesSEK 661.2 million (72.7), Gearbox EntertainmentSEK 455.4 million (-) and EasybrainSEK 877.7 million (-). - Organic growth in constant currency for business area Games amounted to 16%. Pro forma growth in constant currency for business area Games amounted to 19%.
- Net sales for business area
Partner Publishing /Film increased by 67% toSEK 1,359.7 million (812.6). - EBITDA increased by 70% to
SEK 1,489.9 million (878.7), corresponding to an EBITDA margin of 29% (41%). - Operational EBIT increased by 86% to
SEK 1,119.2 million (603.1) corresponding to an Operational EBIT margin of 22% (28%). - Cash flow from operating activities amounted to
SEK 1,050.7 million (840.4). Investments in intangible assets amounted toSEK 968.7 million (557.7). Free cash flow before change in working capital amounted toSEK 370.4 million (315.7). - Adjusted earnings per share was
SEK 0.76 (0.53). Adjusted earnings per share excluding financial exchange gains and losses and discount interest effects on provisions wasSEK 0.87 (0.55). - Total number of game development projects increased 44% to 216 (150).
- Total headcount increased by 66% to 9,524 (5,730) and the total number of game developers increased by 69% to 7,824 (4,636). Organic growth for internal headcount in the Group was 16%.
Key performance indicators, Group | Oct-Dec | Oct-Dec | Apr-Dec | Apr-Dec | |
2021 | 2020 | 2021 | 2020 | ||
Net sales, SEK m | 5,085.2 | 2,168.1 | 11,808.2 | 6,620.0 | 9,024.2 |
EBITDA, SEK m | 1,489.9 | 878.7 | 4,662.3 | 2,812.9 | 3,985.3 |
Operational EBIT, SEK m | 1,119.2 | 603.1 | 3,363.9 | 1,967.6 | 2,870.8 |
Cash flow from operating activities, SEK m | 1,050.7 | 840.4 | 2,691.9 | 2,377.2 | 3,899.0 |
Free cash flow before changes in working capital, SEK m | 370.4 | 315.7 | 853.6 | 1,016.0 | 1,552.0 |
Total investments in intangible assets, SEK m | 968.7 | 557.7 | 2,713.9 | 1,536.2 | 2,135.1 |
Total game development projects | 216 | 150 | 216 | 150 | 160 |
Total internal and external game developers | 7,824 | 4,636 | 7,824 | 4,636 | 5,115 |
Total headcount | 9,524 | 5,730 | 9,524 | 5,730 | 6,325 |
Sales growth, % | 135 | 44 | 78 | 69 | 72 |
EBITDA margin, % | 29 | 41 | 40 | 42 | 44 |
Operational EBIT margin, % | 22 | 28 | 29 | 30 | 32 |
In this report, all figures in brackets refer to the corresponding period of the previous year, unless otherwise stated.
CEO COMMENTS:
EMBRACING AND EMPOWERING GREAT ENTREPRENEURS
We are pleased to announce another stable quarter, with net sales exceeding
We conclude an eventful quarter for our company. I'm proud of the drive, resilience and enthusiasm our employees show, despite enduring another difficult time in the wake of the pandemic. The efforts paid off. The group's operational progress is on track as we continue to execute our different operational strategies across the group. We reiterate the management forecast for operational EBIT for the financial year 2021/22 of
Our IFRS-conversion and preparations for listing our shares on a regulated market is progressing ahead of schedule. We now have the ambition to be ready for listing at the regulated Nasdaq Stockholm Main Market by the end of 2022, earlier than previously expected, provided that certain milestones are reached as planned.
Healthy organic growth in the quarter
On a pro forma basis, the business area Games reached 19% organic growth, driven by the strong performance of our mobile businesses Easybrain and DECA Games, which grew pro forma 34% with 292 million monthly and 34 million daily active users. CrazyLabs recently celebrated 5 billion accumulated installs since its inception.
Record investments in organic growth
The objective of our capital allocation is to drive profitable growth, and the model seems to be working. We believe that the highest potential for value creation is by maximizing long-term profitable organic growth. We have a record 216 ongoing development projects. More than 95% of our capitalized development spend is allocated to the development of upcoming premium games. Our pipeline now has more than 25
Investing in game developer talents strengthens our capabilities to further grow our games portfolio. Our 18 publishers within the Group with over 700 employees works closely with our internal and external developers with production, marketing, sales, distribution, quality assurance and many other workstreams to ensure that our projects have best possible access to the global market upon release and beyond.
Transformative acquisitions adding diversification and strategic opportunities
We are excited about the acquisitions of
Upon closing of these transactions,
Solid financial position to support further growth
After closing of pending transactions, we project that we will have more than
The M&A market is busy with activities ranging from mega deals to smaller transactions. Our great business partners Microsoft, Sony and Take Two have all been making large moves lately with strategic logic, a testimony that gaming is a very attractive form of entertainment. At Embracer, we note a growing number of inbound calls to us from a variety of actors. However, we are more selective than ever. The companies we welcome to our family need to have a long-term mindset, bold ambitions, and feel at home. As evidence of this, I take great pride in noting that 106 of a total of 108 entrepreneurs joining us since the IPO back in 2016, are still part of the family. The Groups core strategy to embrace and empower entrepreneurs seems to work.
We expect to keep growing our eco system with more entrepreneurs and creators in the coming quarters and years. We also have conversations with companies that would be financially transformative and could be the foundation for additional operative groups, but the timing on such deals is always difficult to assess.
We leave another calendar year behind us. Again, I want to sincerely thank each and every one within our global Group, for all the efforts made to keep our business up and running, despite the pandemic we had to face throughout the year. Hopefully, we will soon again be able to see each other across markets. To conclude, I would like to send my thanks to all our shareholders, employees, customers, industry colleagues and business partners for contributing to the prosperity and success of
Co-founder & Group CEO
Presentation of Q3 report
Date:
Time:
Link to webcast: here
FOR MORE INFORMATION:
For any questions on this report, please contact:
Johan Ekström, Group CFO, johan.ekstrom@embracer.com , +46 761 33 82 76
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