Embracer Group Financials Show Q1 Growth, Lord Of The Rings "Well Ahead" Of Business Plan

Published: August 17, 2023 9:15 AM /


Three dwarves against a backdrop of Moria statues and cave complexes in The Lord of the Rings: Return to Moria, a game owned by Embracer Group

Embracer Group has revealed its financial data for the first quarter of the 2023 fiscal year.

The newly-released report covers the April through June period of the year and shows overall net sales growth of 47% for Embracer.

This growth is primarily driven by a 74% jump in PC and console game sales, as well as a 20% tabletop leap and a staggering 173% jump in "Entertainment & Services".

Embracer explains this leap as being primarily driven by "strong licensing revenue for The Lord of the Rings", an IP which the group has previously said it wants to better exploit.

According to Embracer, The Lord of the Rings is "well ahead of the business plan" created a year ago, when the group first acquired the IP.

Embracer points to Lord of the Rings projects currently in development, including the survival-crafter Return to Moria, as titles that will "grow the IP further".

Notably, Embracer doesn't reference The Lord of the Rings: Gollum in its report, probably because it was received so poorly that it reportedly caused its developer Daedalic Entertainment to close its development division.

Three players getting ready to fight a giant monstrosity in Remnant 2, an Embracer Group game
Remnant 2 is one of the games that has driven Q1 growth for Embracer Group in 2023.

On the PC and console game front, Embracer points to the success of Remnant 2, which managed to sell a million copies in its first few days on release.

The group also names tactical RPG Jagged Alliance 3 and the long-awaited Dead Island 2 as contributors to its Q1 success, while also looking ahead to several major releases on the horizon including Warhammer 40k: Space Marine 2Payday 3, and Alone in the Dark.

In the world of tabletop, Embracer says that Asmodee (which is arguably its biggest tabletop property) delivered "9% organic growth" during the quarter, and is expected to make a positive contribution throughout the rest of the first half of the 2023 fiscal year as well.

Embracer also says its "restructuring program" is on track to lower the group's net debt and save on overheads.

The group acknowledges that several "talented and passionate team members" have been let go as a result of the restructuring, but reiterates that it is trying to "provide opportunities for [its] colleagues to transition onto other projects" where possible.

Said restructuring was likely instated as a result of a "groundbreaking strategic partnership", which would have seen Embracer benefiting from a $2 billion investment, falling through in May.

Stay tuned to TechRaptor for more financial info about all the biggest players in the gaming industry.


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