Embracer Group has launched its fourth quarter and full-year monetary outcomes, together with plans to spin off Fellowship Entertainment as a brand new publicly listed firm.
Fellowship Entertainment will focus on its premium IP and improvement portfolio, together with Kingdom Come: Deliverance, Tomb Raider, Metro, Useless Island, Darksiders, and Remnant.
The corporate goals to launch a minimum of two main video games yearly starting in FY 2027/28.
The remaining Embracer entity will deal with “a extra environment friendly construction, tighter value management, and disciplined capital allocation.”
Embracer chairman Lars Wingefors mentioned the choice additional in an open letter to shareholders.
Embracer will start phase reporting in Q1 FY 2026/27 to put together for the break up. Group CFO Müge Bouillon has additionally been appointed deputy CEO to strengthen governance.
This announcement follows Embracer’s report of a 24% decline in fourth quarter web gross sales to SEK 3.9 billion ($414.5 million) and a non-cash impairment of SEK 7.2 billion ($765.2 million).
This consists of SEK 6 billion ($637.7 million) associated to goodwill and M&A intangibles, and SEK 1.2 billion ($127.5 million) for an unannounced ongoing AAA recreation undertaking.
Here is what you want to know:
The numbers
This fall (three months ended March 31, 2026)
- Internet gross sales: SEK 3.93 billion ($414.5 million, down 24%)
- PC/Console video games: SEK 1.55 billion ($159.5 million, down 46%)
- Cellular: SEK 682 million ($72.5 million, down 28%)
- Entertainment & companies: SEK 1.69 billion ($170 million, up 23%)
Full yr (12 months ended March 31, 2025)
- Internet gross sales: SEK 15.90 billion ($1.6 billion, down 25%)
- PC/Console video games: SEK 6.6 billion ($702 million, down 29%)
- Cellular: SEK 2.3 billion ($244.6 million, down 57%)
- Entertainment & companies: SEK 6.9 billion ($734 million, up 6%)
The highlights
Embracer’s PC and console phase noticed the biggest decline in This fall, primarily due to decrease web gross sales from new releases, which totaled SEK 379 million ($40.3 million), a 72% year-over-year lower.
This was largely as a result of Kingdom Come: Deliverance 2 generated important web gross sales within the prior quarter.
New IP Reanimal, developed by Tarsier Studios and printed by THQ Nordic, offered over a million copies since its February 2026 launch.
Screamer and Journey 6, each developed and printed by Milestone, additionally contributed to phase web gross sales.
Income from again catalogue titles rose 4% year-over-year to SEK 994 million ($105.7 million), pushed by Kingdom Come: Deliverance 2 (which exceeded inner expectations), Useless Island 2, and Echoes of the Finish.
The corporate reported a lack of over SEK 200 million ($21.2 million) from monetary write-downs and cuts to co-publishing and work-for-hire tasks. It additionally recorded a lack of SEK 40 million ($4.2 million) from the write-down of non-core IP.
Full-year accounts present Embracer lowered its whole recreation improvement tasks from 94 to 79 and its headcount from 6,875 to 6,090. Of those, 4,485 are recreation builders.
Embracer’s cellular phase reported a 28% year-over-year lower in web gross sales to SEK 682 million ($72.5 million), primarily due to the divestment of Easybrain in January 2025.
Its Entertainment & Companies division, together with Center-earth Enterprises, achieved development pushed by sturdy Plaion Companions releases and ongoing exercise associated to the Lord of the Rings IP.
This follows current experiences indicating that Amazon cancelled its Lord of the Rings MMO, which was in improvement with Center-earth Enterprises and initially introduced in 2023.