Games group Embracer’s share rally as maintains outlook

Embracer Group founder and CEO Lars Wingefors poses for an image in Karlstad, Sweden March 8, 2021. REUTERS/Naina Helen Jama/File Photo Acquire Licensing Rights

STOCKHOLM, Aug 17 (Reuters) – Swedish games developer Embracer (EMBRACb.ST) on Thursday reported slightly weaker than expected working revenue for the April to June period but reiterated its full-year guidance, saying its restructuring programme was on monitor.

Adjusted working profit for the fiscal first quarter stood at 1.67 billion Swedish crowns ($152.75 million), lagging the 1.78 billion forecast in a company-provided poll of analysts, but up from 1.32 billion crowns a 12 months in the past.

Shares in the games developer were up 6.8% at 1026 GMT, sitting at the high of European 600 index (.STOXX).

Analysts stated the company had made good progress towards its monetary targets and cited revenues from some blockbusters.

Redeye analyst Viktor Lindstrom stated revenues from Lord of The Rings games, for which the corporate bought intellectual property rights last year, had helped to drive some “stronger sales than anticipated”.

CEO Lars Wingefors informed Reuters he was confident in the underlying demand in the market, citing the success of the newly-released Remnant II game as a half of the reason for the strong begin to its second quarter, which began in July.

“Overall, we really feel more assured about our supply of our adjusted EBIT guidance for the yr because of the over efficiency,” Wingefors mentioned.

After a lift linked to COVID-19 lockdowns that drove demand for gaming, the corporate has had a troublesome yr with development delays and a poor reception for some of its new video games.

In addition, a $2 billion partnership it had called “ground-breaking” fell via in May, sending the company’s shares down 45% and serving to to drive the company to announce a major restructuring in June, which it mentioned on Thursday was on track.

($1 = 10.9332 Swedish crowns)

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