Embracer Group AB (EMBRAC_B) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

Muge and I welcome you today from our Stockholm office and as usual we'll run through the main updates for our operating segments and the financial performance and then open it up for Q&A. One important reminder From this quarter, we report in our new operating segments, and we've introduced cash EBIT as our key earnings measure. Together, these changes sharpen our focus on operating performance, capital discipline, and stronger conversion of earnings into cash flow. This is the operating model we are building the future on, and it sets us up for the spinoff of Fellowship Entertainment in calendar 2027. So let's get going. Overall, our quarterly results reflect another delivery above plan on both the revenue and cash EBIT side. Net sales were 3.9 billion sec, a 33% organic growth year over year, driven by the Embracer segment, with broad growth across its business areas, PC console, mobile, and not least entertainment and services, which had a standout quarter. Following a strong Q4, we delivered positive cash EBIT and positive free cash flow on a group level in a quiet quarter from a major game release perspective. Now that's the power of the catalogue we are building, that our core franchises keep delivering quarter after quarter. For the full year, we confidently reiterate our cash EBIT forecast of at least 1 billion SEC. The year is anchored by Metro 2039, expected to be released in February next year. And the momentum is building fast. After its reveal, Metro 2039 raced to one million wishlists, reaching this milestone faster than any title in our history. And wishlists continue to grow ahead of expectation. Our team is lining up a major marketing beat for Metro at this year's Gamescom, just in a couple of weeks now. with new content at the opening night live sh...