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Embracer Group’s mobile gaming revenue increased 67% between July and September

The company's latest financial statement showcases its strong performance over the period
Embracer Group’s mobile gaming revenue increased 67% between July and September

Embracer Group has released its interim report for July-September (Q2), showcasing the company’s growth over the period.

The company saw net sales of $900 million, representing a 190 percent increase from $312 million in the same period of 2021. The company’s PC and console net sales increased by 107 percent year-on-year, reaching $390 million. The company also saw a significant increase in its mobile net sales, which reached $136 million, representing a 67 percent rise from $81.5 million in the same period in 2021.

This growth follows a strong performance in the April-July period. When looking at the whole six-month period, the company saw net sales of $1.6 billion, representing a 148 percent increase from $64 million in the same period in 2021.

Although the company’s mobile gaming branch saw lower growth than PC and console between July and August, it outperformed both when considering the entire six-month period, reaching $276 million, compared to $150.2 million in the same period of 2021, an increase of 84 percent. In contrast, the company’s net sales for PC and console games reached $602 million, rising 52 percent year-on-year from $421 million.

Embracing success

The company’s statement states that its mobile games arm is favourably positioned, despite the looming recession and the lingering effects from IDFA changes. “We consider our mobile businesses within ads as leading in the industry, and they adapt quickly to new conditions, constantly balancing profit and growth for the best long-term performance,” said CEO Lars Wingefors.

Looking forward, the company believes it’s in a good position to navigate the market even in the face of challenging macroeconomic factors worldwide. “I have a firm belief in our decentralized operating model, which is built around experienced and successful creators and entrepreneurs. That said, the world has changed for the worse in many areas, becoming darker in recent months,” said Wingefors.

“We need to adapt to the challenges of geopolitical and social issues around the world and the new macroeconomic reality. The increased cost of capital will impact our business going forward. The adjustments in the cost of capital will, compared to before, require current and future investments, both organic and inorganic, to have a higher minimum hurdle with a safety margin to justify the capital allocation. We need to continue our sharp focus on the execution of our ongoing business around the world.”

Earlier this year, we listed Embracer Group as one of the top 50 mobile game makers of 2022.