Embracer Group mobile revenue drops 31% after Easybrain sale

Net revenue for Embracer Group‘s mobile division fell by 31% year-over-year to SEK 943 million ($98m) in Q4 FY2025.

That's according to the company's latest financials which showed that, for the full year, mobile games sales dropped by 9% to SEK 5.35 billion ($553m).

Mobile segment EBIT surged to SEK 8.2bn ($856m), while adjusted EBIT fell sharply to SEK 91m ($9.5m). Mobile division earnings were impacted by the sale of Easybrain to Miniclip in a $1.2 billion deal. 

Embracer said user acquisition costs rose to SEK 575m ($60m), accounting for 61% of net sales, up from 35% the previous year. Installs also declined to 204m from 248m, while daily and monthly active users remained relatively stable at 28m and 222m, respectively.

Despite the declines in revenue and downloads, Embracer claimed it had seen 30% “organic” growth Y/Y, driven by recent releases and, notably, its UA spend.

Overall net sales for the quarter declined by 6% to SEK 5.3 billion ($553m). Meanwhile, EBIT dropped to SEK 4.3bn ($449m), and adjusted EBIT increased 3% to SEK 1.077bn ($112m). 

For the full year, Embracer reported a net sales decline of 18% to SEK 22.4bn ($2.3bn).

“Capital allocation is key"

“After the quarter, we have seen positive incremental market developments, especially regarding mobile app store fee dynamics," said Embracer Group co-founder and CEO Lars Wingefors. 

“Whilst our own execution and capital allocation is key, improving industry dynamics will be supportive in our strides to grow into a sharper, stronger and more future-ready company.”

He added: “We always strive for an optimal capital structure in our business, and we will return to the topic of capital distribution when we take the next step in shaping our future

“By the end of 2025, we now plan to spin off Coffee Stain Group, a group of leading community-driven game developers and publishers. We have a strong financial position, and we remain focused on enhancing efficiency and long-term resilience ahead of the spin-off."