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Video game maker Embracer Group shares slip after Q4 sales miss forecasts

Published 05/23/2024, 08:46 AM

Investing.com -- Shares in Embracer Group (ST:EMBRACb) dropped on Thursday after the Swedish video game maker announced fourth-quarter sales that were below expectations.

The firm, whose titles include action-adventure franchise Tomb Raider, also announced that deputy CEO and Chief Financial Officer Johan Ekström would be stepping down from the roles as of Sept. 1.

Deputy CFO Müge Bouillon will be promoted to finance chief, while Phil Rogers (NYSE:ROG) -- head of Embracer's Crystal Dynamics - Eidos division -- will assume the role of deputy CEO.

Embracer's stock price, which has shed roughly 80% of its value since reaching a high point in 2021 during a pandemic-fueled uptick in video game demand, had fallen by 6.5% in mid-afternoon European trading.

In the quarter through March, revenue slipped by 5% to 8.9 billion Swedish crowns, missing analysts estimates. Adjusted operating profit increased by 56% to 1.4 billion Swedish crowns, roughly meeting projections.

"The results today are soft across the board and marked by a CFO and deputy CEO change. The underperformance today [...] was broadly driven by all business segments," analysts at Jefferies said in a note to clients.

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