Embracer slumps as higher costs, weak box office performance weigh on Q3 results

Embracer AB

13/02/2025 08:26

** Shares in Embracer  EMBRACb.ST  fall 10% after the
Swedish gaming group posted its Q3 earnings below expectations
    ** The results were hit by higher user acquisition costs in
mobile games and weaker-than-expected box office performance,
the company said in the report
    ** The owner of Tomb Raider said its adjusted operating
profit fell 11% to 1.18 billion crowns ($109.05 million) in the
quarter ending December, missing analysts' forecast of 1.73
billion crowns
    ** Redeye analysts say Embracer's Q4 outlook is cautious,
expecting limited EBIT from Mobile and Entertainment & Services
due to increased user acquisition investments and lack of
notable product releases
    ** The stock, on track for its worst day in three months, is
the weakest performer on STOXX 600  .STOXX  index 

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))