Embracer's Asmodee sets mid-term targets ahead of spin-off (updated)

Embracer AB

19/11/2024 06:44

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paragraph 4, 7)
       Nov 19 (Reuters) - Tabletop games publisher Asmodee, to
be spun off from Swedish gaming group Embracer  EMBRACb.ST , on
Tuesday forecast medium-term organic sales growth in a
mid-single-digit percentage and an adjusted core profit (EBITDA)
margin of above 18%.
    Embracer, the owner of the Tomb Raider franchise, said in
April it was planning to split into three separate listed
companies as part of its debt restructuring.
    Ahead of its planned Stockholm listing, Asmodee will
refinance 900 million euros ($952.6 million) of debt via capital
markets and receive a 400 million euro equity injection
following Embracer's divestment of Easybrain, the parent company
said in a statement ahead of its investor day.
    The equity injection would reduce Asmodee's pro forma net
debt to 493 million euros and its leverage ratio to 2.2 times
adjusted EBITDA, it added.
    Embracer, like other game developers, thrived during the
COVID-19 lockdowns, but has since been hit by development delays
and poor reception of new titles.
    The $3 billion price it paid for Asmodee in 2022 now matches
the whole group's market capitalisation, reflecting the impact
of these challenges since the deal was closed.
    Asmodee also said it aimed to distribute excess liquidity
through dividends once it achieves a sustainable leverage ratio
in line with its long-term financial targets.
($1 = 0.9448 euros)

 (Reporting by Jesus Calero in Gdansk; editing by Milla Nissi)
 ((Jesus.calero@thomsonreuters.com))