Embracer debt reduced to $1.4 billion as restructure continues

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Embracer has released its latest financial results, as well as an update on the restructuring programme that has led to mass layoffs and various studio closures.

For the three months ended September 30, the company reported net sales had risen 13% year-on-year to SEK 10.8 billion ($1 billion). Meanwhile, its net debt has been reduced to SEK 14.6 billion ($1.4 billion), marking a 31% improvement on where it stood at the same point last year.

The company also confirmed that 904 people have been laid off as part of the restructure.

Here's what you need to know:

Q2 (June - September 2023)

H1 (April - September 2023)

Embracer announced in June that it is undergoing a restructuring program following the collapse of a deal that was expected to be worth at least $2 billion.

In its financial results, the group detailed the milestone it's currently aiming for, which include:

Reducing its capital expenditure by at least SEK 2.9 billion ($274.5 million) by the beginning of the next financial year on March 31, 2024 Reducing its overhead costs by at least 10% or SEK 800 million ($75.7 million) Reaching a net debt of SEK 8 billion ($757.1 million) by the end of its current financial year

The company reported the first phase of its capital expenditure reductions have been completed, and the second phase is currently underway following a review of the group's pipeline of upcoming PC and console games.

This review saw 15 projects, mainly unannounced titles, from Gearbox, Plaion, Saber Interactive, THQ Nordic, Amplifie and Freemode being written down.

The latest reporting period was also the first time Embracer has seen a quarter-over-quarter reduction