Embracer sales up 128% during Q3, but organic growth down

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Embracer Group has published its financial report for Q3 FY 22/23, which is the three months ended December 31, 2022.

Net sales: SEK 11.6 billion ($1.1 billion), up 128% year-on-year, but down 3% in organic growth

Net profit: SEK 1.49 billion ($141 million)

In its comments about the quarter, CEO Lars Wingefors noted that Q3 was "stable" and "in line with management expectations."

The decrease in organic growth "reflects tough year-on-year comparisons and limited new PC/console game releases," he said, pointing to delays announced in previous quarters. He added that there was also a "mixed reception of releases during the year and a softer consumer purchasing power."

Goat Simulator 3 was mentioned as the "main revenue driver among new releases in the quarter."

Wingefors noted that Embracer expects more third-party funding as well as "additional deals" to close by the end of the financial year. He said that partnerships like the one it signed with Amazon Games to make a Tomb Raider game are "jointly transformative."

As the firm looks to bolster its "partnership approach," it's appointed Careen Yapp as chief strategic partnerships officer. Yapp previously had been managing advisor at consulting firm The Games and Entertainment Management Group for over a decade.

Embracer has invested SEK 1.69 billion ($160 million) in game development during the quarter, the report further showed, which is part of the firm's long term strategy to increase organic growth.

"It also reflects a deliberate shift from co-publishing and work-for-hire projects towards internal development projects for certain operative groups, as well as the operative group Crystal