Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.