Embracer Group sent its financial report for the last year to investors and shed light on what it wants to do with its newly acquired North American studios, Square Enix Montreal, Crystal Dynamics, and Eidos Montreal.
It’s not surprising that Embracer bought these studios and IPs. Still, it’s surprising that the company has publicly committed to “remakes, remasters, spinoffs, and media projects” based on these games. Remakes and remasters have become a growing staple of game publishers’ portfolios. They allow companies to introduce new studios to a franchise, restore classic titles to the video game market, and capitalize on player nostalgia.
Embracer earned approximately SEK 17.03 billion ($1.7 billion) in net sales (an 89 percent increase from the previous year) in the last fiscal year ending March 31, 2022. In the fourth quarter of the year, it generated a net income of SEK 5.28 billion (117 percent year-on-year increase).
Embracer does not report net income but instead prefers to share its Earnings Before Interest, Taxes, Depreciation, and Depreciation (EBITDA) results. Its EBITDA rose 54 percent year-over-year to SEK 6.1 billion, some of which came from fourth-quarter results, with EBITDA up 26 percent to SEK 1.6 billion.
The company says its growth is partly due to multiple acquisitions it made over the past year, including Borderlands developer Gearbox, Dark Horse, Easybrain, and Asmodee.