Embracer Group has reported disappointing Q3 results, but was saved by revenue from the ‘Lord of the Rings’ licensing. The Swedish gaming conglomerate has undergone a restructuring program resulting in layoffs and studio closures.
The Q3 report revealed an 8% reduction in the workforce and CEO Lars Wingfors admitted they may not reach their target of lowering net debt. The Entertainment and Services division saw a 12% net sales growth with a contribution from the Tolkien IP.
Embracer’s CEO also mentioned the company’s eye on the upcoming theatrical release of an animated prequel to ‘Lord of the Rings.’ Although the adjusted operating profit for Q3 fell marginally below forecasts, it represented a 7% rise year-on-year.
Prior to the restructuring, Embracer had been acquiring games studios and entertainment properties. The acquisition of Middle-earth Enterprises, giving them ‘Lord of the Rings,’ was part of this strategy.
Embracer Group Reports Disappointing Q3 Results, Saved by ‘Lord of the Rings’ Licensing Income
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