Results from
Embracer:
- A bit better than expected.
- The restructuring program has resulted in a reduction of around 900 staff, 5% of its workforce, and the discontinuation of several studios and projects.
- Mixed reception and performance for
Payday 3.
- Multiple divestments and/or external investments are very likely happening:
In the past months, we have accelerated processes to divest assets relative to processes to increase external funding of game development projects. This shift is driven primarily by a notable inbound interest, but also by market dynamics and reduced levels of platform content investments. As a result, we are now running a few structured divestment processes that give us flexibility and optionality to reach our targets. We are focused on maximizing shareholder value and on delivering the targeted run-rate capex levels in the most effective way. Notable capex savings and net debt reduction are expected to materialize post-completion of these processes.
- Internal consolidation is happening too:
Right now we are in the early stages of our plans to consolidate our businesses, including a review of our operative group structure, which is part of the late stages of the restructuring program. We have a responsibility to use our size and talent in smart ways to develop and scale services and capabilities across Embracer
to deliver always better experiences for players.
They have 12 operative groups (Gearbox, Crystal Dynamics/Eidos or Saber are independent groups, for example). I guess that more than one is going to be consolidated.
