Embracer: End of quarter game sales update – Introduce
Solid back catalogue performance to drive the quarterOur research suggest that Embracer’s back catalogue sales will drive solid revenues in Q4’19/20e, which is especially important in a quarter that lacks any notable new releases. We believe that Metro Exodus will be the largest back catalogue revenue driver, which was released on Steam on 14 Feb 2020 and appears to have gathered +200k new game owners, combined with a solid performance on PS4 and Metro Exodus remaining on Epic’s Top 20 list. Additionally, the PlayStation 4 release of Hunt: Showdown appears to have been well received, gathering favourable reviews and ~170k new game owners on PlayStation 4. For a more detailed breakdown see pages 4-7.
On a group level we now forecast sales of SEK 1,245m, a gross margin of 52. 3%, and an Adj. EBIT of SEK 238m, for a margin of 19.
1%.
