Embracer Group AB (EMBRAC_B) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and thank you for joining our webcast today covering our Q4 and full year results. Muge and I welcome you today from Stockholm on voice and also on camera. And as usual, we have a short presentation to cover the main updates for our operating segments, a look at the financial performance. And with our news this morning, we will then spend most of our time looking ahead to cover the next step for Embrace a Group before turning over to the Q&A. So with that, let's get going. Overall, our quarterly results reflect another delivery above plan on both the revenue and adjusted EBIT side. Total net sales were 3.9 billion sec, a 10% organic drop year over year, which we'll see comes from PC Console, which had some tough comps to Q4 last year with the launch of Kingdom Come Deliverance 2. Mobile and entertainment services both delivered growth in Q4. Now, as we said in February, we took positivity into Q4, and it shows here. On a core IP theme, Kingdom Come continued to deliver. Overall, Q4 free cash flow was also strong. For the full year, sales totaled 15.9 billion sec, and adjusted EBIT came in at 0.9 billion sec, above our guidance. Again, we talked in February how this was clearly a transformative time for our group, Coffee Stain successfully completing its separate listing in December 2025, and the group working hard to deliver its plan to the full potential. Now, Muge will go deeper on the financial shortly, but from my side, I just emphasise it's good to see the business delivery coming through in these results. It's also good to report here the positivity to the Metro 2039 reveal. That was mid-April, and momentum is strong. And that takes us to today, with the news of a proposed separation into two groups. The separation will be during 2027, s...