Embracer Group AB (EMBRAC_B) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to Embrace the Group Q1 presentation. My name is Simon Jönsson, an equity analyst with ABG Sundal Collier, and I will be the host today. We will begin with a presentation of the results by the management team and after which we will follow up with a Q&A session. And to participate on the Q&A, you can either send in your questions using the web or you can join the telephone conference. And without further ado, I will leave the word over to you Lars. Thank you, Simon, and hello and welcome everyone to great Stockholm this morning. So let's go straight into the brief summary of the quarter. I'm pleased to announce a net sales of 10.5 billion, which is the growth of 47% year-over-year, or an organic growth of 20%. driven by solid performance of Dead Island 2. Our profitability with adjusted EBIT came in at 1.7 billion, representing a notable improvement sequentially. The Q1 result is also ahead of management expectations for the quarter. The positive sequential margin development in the quarter is a result of how we deliver on our games pipeline. Our Q1 execution builds a strong foundation to further improve the margin during the year after challenging fiscal 2022-2023. The free cash flow of minus 600 billion, 600 million, in Q1 is largely in line with the plan for the year, given the continued imbalance between investments of completed PC games game development, which in the quarter where we invested 1.7 billion into the pipeline, but the completion, the value of the game completed, including that island, was only 800 million. The adjusted earnings per share increased 4% year over year. So now looking again into the operational performance, we had Dead Island 2 and Remnant 2 that jumped start of the year. In recent months, those titles have been...