The company Embracer Group reported Profit for the fourth quarter and fiscal year. The aggressive strategy for buying studios contributed to the growth of revenue. The publisher is negotiating the acquisition with more than 150 companies, and over 20 of these negotiations are already “in the later stages”.
Embracer Group reported that for the fiscal year ended on March 31, the revenue increased by 72%, to 9.02 billion Swedish kroons ($ 1.09 billion), and net profit – less than 2%, to 287 million Swedish crowns ( $ 34.6 million). The fourth quarter was especially successful for the company, which contributed to the launch in early Valheim. Sales of the game amounted to 6.8 million copies.
In addition to Valheim, the list of best-selling Embracer Group games over the past year includes Spongebob Squarepants: Battle for Bikini Bottom – RehyDrated (over 2 million copies), SnowRunner (about 2 million copies) and Destroy All Humans! (more than 1 million copies).
Since the beginning of 2020, Embracer Group has made more than 25 acquisitions and further attracted $ 890 million for further purchases. The company said that only in the fourth quarter she “agreed with more than 150 companies about joining the group.” However, she did not specify who negotiates.
As of the end of the fiscal year, Embracer Group has contained 160 projects in the development. The company stated that more than two thirds refer either to new franchises or to the series that were inactive at least five years.
Finally, Embracer Group spoke out about the share of revenue from digital platforms. This question has recently been particularly relevant in connection with the trial between Epic Games and Apple.
«During the past fiscal year, the actual fees paid to the holders of platforms (consoles and STEAM) only for digital sales are estimated at least 2 times more than the actual costs of game development during the past fiscal year, “said Embracer Group investors. – We will continue to dispute these paradigms and look for opportunities to reduce costs and increase relative investments in creating content. “