2023-11-22 12:12:57
Embracer Group, which owns Asmodee and its 22 studios, has confirmed that it has begun a “restructuring” in its board games branch, as part of its cost reduction program which has already eliminated more than 900 jobs, so far mainly in on the video game side, as well as the abandonment of projects and studios such as Volition (developer of the Saints Row and Red Faction video games). “It is never easy to part with talented people. I would like to especially thank those who left Embracer during the quarter, wrote group CEO Lars Wingefors in this rapport fiscal. These are difficult decisions and we do not take them lightly. »
After years of a frantic acquisition policy, Embracer has switched since last June (news) to “cash flow generating activity” mode, which resulted in the dismissal of 5% of the company’s total workforce. This involves resolving a debt amounting to $1.45 billion following the failure in May of a $2 billion partnership agreement with Savvy Games Group (a company under the leadership of the Crown Prince of Arabia). Saudi Mohammed Bin Salma).
During the last Rapport 2023/2024 run by Lars Wingefors (CEO), Johan Ekström (financial director), Müge Bouillon (financial director) and Phil Rogers (CEO) in Stockholm, Embracer indicates that it is optimistic regarding the results of the actions carried out by this economic plan.
This report, covering the period between July and September 2023, shows that Asmodee, and particularly collectible card games, have once more achieved good sales. Asmodee’s net sales increased 25% in the quarter to just over $389 million, while the PC and console gaming segment saw its net sales decline 5% to reach approximately $372 million.
Entertainment & Services revenue increased 13% on an organic basis, driven by licensing revenue from the Seigneur des Anneaux : Tales of Middle-earth trading card game. In fact, Embracer also acquired Middle-earth Enterprises in August 2022, acquiring the rights for all productions related to Lord of the Rings and at Hobbit.
It was also highlighted that the reduction in inventories made it possible to generate cash, as planned in the economic plan.
The group overall reported a 14% drop in adjusted operating profit to 1.8 billion Swedish crowns ($170.2 million) in the quarter ending September, but beat forecasts analysts who expected a profit of 1.62 billion crowns. Note that the European market was more receptive than the American market this quarter.
Lars Wingefors, Johan Ekström, Müge Bouillon
Müge Bouillon, financial director of the Asmodee group, said: “I am very satisfied with Asmodee’s performance. September is an important peak season period for us, and the implementation of the restructuring program has also started at Asmodee, so the good performance is the combination of current trading, operational performance and correct execution of the plan. »
Lars Wingefors also welcomed numerous outings as Champions! from Repos Prod, Spellbook from Space Cowboys, as well as Love Letter Bridgerton from Z-Man, but also Dixit Disney from Libellud or even Ticket to Ride Legacy and the figurine game from Atomic Mass Games, Marvel Crisis Protocol. Wingefors finally highlighted the future launch of Star Wars Unlimited as a highly anticipated event (set for March 8, 2024).
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