Embracer Group AB (EMBRAC_B) Q1 2027 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:04.655 Muge and I welcome you today from our Stockholm office 00:00:05.240 -- 00:00:09.347 and as usual we'll run through the main updates for our operating segments and the financial 00:00:09.347 -- 00:00:12.872 performance and then open it up for Q&A. 00:00:12.872 -- 00:00:18.050 One important reminder From this quarter, we report in our new operating segments, 00:00:18.050 -- 00:00:22.373 and we've introduced cash EBIT as our key earnings measure. 00:00:22.373 -- 00:00:27.376 Together, these changes sharpen our focus on operating performance, capital discipline, 00:00:27.376 -- 00:00:31.099 and stronger conversion of earnings into cash flow. 00:00:31.099 -- 00:00:35.522 This is the operating model we are building the future on, and it sets us up for the 00:00:35.522 -- 00:00:38.564 spinoff of Fellowship Entertainment in calendar 2027. 00:00:38.564 -- 00:00:41.084 So let's get going. 00:00:44.965 -- 00:00:50.008 Overall, our quarterly results reflect another delivery above plan on both 00:00:50.008 -- 00:00:55.651 the revenue and cash EBIT side. Net sales were 3.9 billion sec, 00:00:55.651 -- 00:01:00.734 a 33% organic growth year over year, driven by the Embracer segment, with broad 00:01:00.734 -- 00:01:05.756 growth across its business areas, PC console, mobile, and not least 00:01:05.756 -- 00:01:10.138 entertainment and services, which had a standout quarter. 00:01:10.504 -- 00:01:15.666 Following a strong Q4, we delivered positive cash EBIT and positive free cash 00:01:15.666 -- 00:01:21.788 flow on a group level in a quiet quarter from a major game release perspective. 00:01:21.788 -- 00:01:26.190 Now that's the power of the catalogue we are building, that our core franchises keep 00:01:26.190 -- 00:01:29.810 delivering quarter a...