Embracer Group AB (EMBRAC_B) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Embrace a Group Q2 Interim Report 2025-26. During the Q&A, participants on the telco are able to ask questions by dialing pound key five on their telephone keypad. No written comments. Now we'll hand the conference over to CEO, Bill Rogers, and CFO, Mugge Boyan. Please go ahead. Thank you. And good morning, everyone, and thank you for joining our webcast today to cover our Q2 results. Muge and I are talking to you today from our Stockholm office again. We have a short presentation to cover the main beats for our operating segments and look at our financial performance and then closing on some key steps looking ahead before turning over to Q&A. So with that, we'll get straight in. And this covers really the highlights for Q2. So overall, Q2 results reflect a soft quarter for new PC console releases. Net sales were 3.8 billion sec, which represents a 19% year-over-year decline, but a 6% organic growth when we consider the impact of our divestments and FX. And amongst that, we saw solid performances from two really important IPs. We saw strong merchandising sales within Middle Earth Enterprises. And on Kingdom Come Deliverance, we were delighted to see increased engagement with gamers throughout the quarter. The team had a good plan and delivered it. Our adjusted EBIT was 109 million SEC. Now, this is down from 513 million SEC reported in Q2 last year or down from 247 million SEC when we factor in the divestments. Now, free cash flow generation over the trailing 12 months or TTM stood at 1.3 billion SEC. Our balance sheet remains strong. Muge will, of course, talk more about this shortly now. Looking beyond the data and as we've covered in our Q1 update, the recent AGM and our report this morning, this is a transformative time for our group. CoffeeStain is on...