Embracer Group today reported its fourth quarter and financial year incomes, revealing that the company’s aggressive acquisition strategy has actually boosted top-line development more than the bottom line.For the year ended March 31, Embracer Group reported net sales up 72%to SEK 9.02 billion( $1.09 billion), with net profits up less than 2% to SEK 287 million ($34.6 million).
The fourth quarter was particularly strong for Embracer, sustained by the Early Access launch of Iron Gate Studio and Coffee Stain’s breakout struck Valheim, which has offered 6.8 million copies.Net sales for the
quarter were up 80% to SEK 2.4 billion ($289 million), with net revenues up 20%to SEK 159 million($19.1 million). Beyond Valheim, Embracer Group’s
best-selling titles of the year included SpongeBob Squarepants: Battle for Bikini Bottom Re-Hydrated(more than 2 million sold), SnowRunner (nearly 2 million sold), and Destroy All Humans (more than 1 million offered). Embracer has made more than 25 acquisitions given that the beginning of 2020, and in March made a share offering to raise an additional $890 million for more acquisitions. The business stated in the fourth quarter alone it”engaged with more than 150 companies about signing up with the group.”It stated that at the moment, it is in “late-stage talks”with more than 20 celebrations, including several that have actually signed letters of intent. It suggested it will not reveal those celebrations.”It is very important that
we remain sensible in our M&A technique and not hurry into closing a transaction prior to it is all set, “Embracer informed financiers. “In M&A as in video game advancement, quality comes.” As of the end of its , Embracer had 160 advancement tasks in the works. The company said more than two-thirds were either in new franchises or series that have been inactive for a minimum of 5 years.Finally, the business weighed in on the income share of distribution channels, an issue that has actually taken increased prominence of late with the Epic v. Apple claim. “During the past fiscal year, the actual costs paid to platform-holders( console and Steam )for digital sales alone are estimated to be a least 2x the real costs invested in game development during the past fiscal year, “Embracer said.”We will continue to challenge these paradigms and pursue chances to decrease costs and increase the relative financial investment into content creation.