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Embracer Group sets out plan for future triple-A releases and further acquisitions

Embracer Group – which includes Koch Media, Saber Interactive, Coffee Stain and THQ Nordic – had a tough-looking Q4 in an otherwise successful year. That was simply because its 2019 Q4 included the release of Metro: Exodus and it didn’t have a triple-A title to match this year.

The group, which has lrage numbers of mid-tier and indie products, is looking to bring annual triple-A titles into its schedule though, with CEO Lars Wingefors saying that such releases would come from the following year FY2021-22.

“Looking into the next financial year ending March 31 2022, we expect continued organic growth driven by further increase in the value of completed games including the first AAA games releases since Metro Exodus. From this year on we expect to have AAA releases every year.”

Those releases will be part of the whopping 118 games that the group and its many subsidiaries currently have in development. Of these 69 titles that are in development have yet to be announced. And those come from 31 internal studios and 61 external studios. And that total is likely to rise yet again as the group continues to pursue further acquisitions.

“The appetite among gaming entrepreneurs for joining forces is solid and growing.”

“Our M&A strategy retains a strong pipeline of possibilities. The appetite among gaming entrepreneurs for joining forces is solid and growing. Currently we are involved in several ongoing discussions which could lead to future acquisitions, including a handful groups of sizable companies that could form new operative groups,” Wingefors said.

“I genuinely believe that we have one of the industry’s most exciting pipelines of upcoming games, engaging over 3,000 game developers across the world. We believe this will drive significant organic growth in revenue, operational EBIT and cash flow in the Games business area in the coming years.”

Overall the group had a good year, with net sales up three per cent and profits (EBITDA) up by 33 per cent. The final quarter saw a spike in digital sales, related to coronavirus, with digtial sales spiking to 78 per cent.

Growth in the next financial year is ascribed to a strong line-up, both current and upcoming, Wingefors said: “This growth will be underpinned by recent and upcoming new game releases such as Biomutant, Chorus, Deep Rock Galactic, Destroy all Humans!, Iron Harvest, MotoGP 20, Ride 4, Snowrunner, Wasteland 3, WWE2K Battlegrounds (in collaboration with 2K) and a host of other titles that have not yet started their marketing campaigns.”

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