Embracer Group AB (EMBRAC_B) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Embracer Group Q1 Interim Report 2025-26. During the question and answer session, participants are able to ask questions by dialing pound key five on the telephone keypad. Please limit yourself to two questions at the time and then return to the queue. Now we'll hand the conference over to CEO Phil Rogers and CFO Muge Bouillon. Please go ahead. Thank you. And good morning, everyone. And thank you for joining our webcast today on our Q1 results. Today marks a change from our most recent quarterly updates in that we're talking to you from our Stockholm office. We have a short presentation to cover the main beats for our operating segments, a look at our financial performance, and then closing on how we're seeing the outlook and the times ahead before turning over to Q&A. It also makes a change for me to be here becoming the group CEO on the 1st of August, just a couple of weeks ago. It's an honor to lead Embracer at this pivotal moment of our evolution. And I'm grateful to the board and to Lars in particular for the trust placed in me. And with that, I'll jump straight in. Overall, our Group Q1 results reflect a quiet quarter for PC console releases. Net sales were 3.4 billion sec, which represents a 31% year-over-year decline, but a much tighter 2% organic decline when we consider the impact of our divestments last year. on adjusted EBIT, all that came in at 75 million SEC. This was down from 579 million SEC reported in Q1 last year, or down from 250 million SEC when we factor in those divestments again. Now, I don't want to spend too long on this slide because we'll dive into more details as we look at the segments. But I do think it's important to highlight the free cash flow generation over the trailing 12 months or TTM at 1.2 billion SEC. Muge will talk...