Tomb Raider Chronicles - EMBRACER GROUP PUBLISHES Q4 2024/25 INTERIM REPORT

Embracer Group has published the interim report for Q4 2024/25, the period January-March 2025. Embracer Group has an extensive catalogue of over 450 owned or controlled franchises including Tomb Raider and 73 internal game development studios including Crystal Dynamics and Eidos Montreal.

"In a solid ending to the year, net sales grew by 19% organically to SEK 5.4 billion, while Adjusted EBIT grew by 44% year-on-year pro forma to SEK 1.1 billion, with a free cash flow of SEK 1.0 billion in Q4. Kingdom Come: Deliverance II continued to perform in Q4, and reached 3 million sold copies after quarter-end. Organic growth within Mobile accelerated to 30% year-on-year. By the end of 2025, we now plan to spin off Coffee Stain Group, a group of leading community-driven game developers and publishers. We have a strong financial position, and we remain focused on enhancing efficiency and long-term resilience ahead of the spin-off." says Lars Wingefors, CEO and co-founder of Embracer Group.

"The solid Q4 results were driven by PC/Console Games and the performance of Kingdom Come Deliverance II. The game, developed by Warhorse Studios, reached three million sold copies after the quarter and has maintained a highly positive player and critic reception. Free updates and paid DLCs (Downloadable Content) are planned to release over the next 12 months, keeping players excited and deeply engaged. In the Mobile Games segment, organic growth accelerated significantly to 30% YoY, driven by recent game releases and increased user acquisition costs. We expect these investments will provide sustained long- term profitability."

In the PC and Console Games segment, Embracer Group said "net sales in the quarter for PC/Console Games amounted to SEK 3,069 million, a decrease of -2% compared to the same period last year, but an increase of 22% organically and pro forma. The strong organic growth was primarily driven by the successful new release of Kingdom Come: Deliverance II."

"Net sales from new releases amounted to SEK 1,377 million in the quarter, an increase of 99% YoY. Among the new releases in the quarter, Kingdom Come: Deliverance II was by far the main driver. Other net sales drivers included Tomb Raider IV-VI Remastered, Wreckfest 2 (PC early access) and Hyper Light Breaker (PC early access)."

Net sales in the quarter for Mobile Games "amounted to SEK 943 million, a decrease of -31% compared to the same period last year, driven by the divestment of Easybrain, but grew 30% organically and 30% pro forma. The organic growth notably accelerated sequentially from 3% in the previous quarter to 30% in this quarter, driven by recent game releases and increased User Acquisition Cost (UAC). Underlying market trends were largely stable compared to the previous quarter, with normal seasonal trends."

Net sales in the The Entertainment and Services segment "amounted to SEK 1,373 million, an increase of 9% compared to the same period last year, or 9% organically and pro forma. The positive organic growth was evenly distributed between PLAION Partner Publishing & Film, Dark Horse and Freemode in a quarter with limited new major product releases."

Concluding, Lars Wingefors said "management continues to be focused on executing in the right order. We are actively exploring opportunities to enhance strategic optionality, improve operational efficiency, and maximize shareholder value by evaluating divestments, acquisitions, mergers as well as further separations of specialized public listed companies. We always strive for an optimal capital structure in our business, and we will return to the topic of capital distribution when we take the next step in shaping our future."