2024-02-15 10:41:03 ET
Embracer Group AB (publ) (THQQF)
Q3 2024 Earnings Conference Call
February 15, 2024 03:00 AM ET
Company Participants
Lars Wingefors - Chief Executive Officer
Johan Ekstrom - Chief Financial Officer
Phil Rogers - Chief Executive Officer, Crystal Dynamics, Eidos & Interim Chief Strategy Officer
Conference Call Participants
Erik Larsson - SEB
Rasmus Engberg - Handelsbanken
Nicolas Langlet - BNP
Martin Arnell - DNB Markets
Simon Jönsson - ABG Sundal Collier
Presentation
Erik Larsson
Good morning and welcome to Embracer's Q3 Report Presentation. My name is Erik Larsson. I'm an equity research analyst at SEB. I will be the moderator today obviously. We will start today with a handful of presentations from Embracer management including an update on the restructuring program before we go back to Q&A.
So, with that, I'll hand over to you Lars.
Lars Wingefors
Thank you, Erik. Hello and welcome everyone to this Embracer Group's Q3 presentation from Stockholm. Let's dive straight into the business highlights for Q3.
First of all, I am happy to say we delivered another stable quarter with net sales of SEK12.1 billion and adjusted EBIT of SEK2.2 billion in Q3. The financial performance was driven by a strong quarter from Asmodee Middle-Earth Enterprises and our mobile businesses.
Organic growth amounted to minus 4%, a result of positive organic growth within tabletop offset by a light release schedule within PC console and an increased focused on profitability within mobile. The pro forma growth was minus 2%.
The free cash flow in Q3 was the second highest ever for Embracer at SEK1.2 billion. Importantly, for this year, we see even more distribution of free cash flow in the second half compared to second half last year.
For fiscal year 2023-2024, we reiterate our adjusted EBIT forecast of SEK7 billion to SEK9 billion and now see it likely that we will reach the low end of the forecast range. This is driven by a somewhat softer outlook for PC console compared to our assessment in Q2 due to the performance of recent new game releases as well as a few additional pipeline shifts from Q4 and shift within the quarter.
While we have a -- seen a solid delivery across three out of four segments throughout the year, there is room for further improvement of our financial performance, primarily within PC console....
Read the full article on Seeking Alpha
For further details see:
Embracer Group AB (publ) (THQQF) Q3 2024 Earnings Call Transcript