Finance
Games group Embracer beats profit expectations driven by back catalog
Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
Embracer Group exceeded profit expectations by leveraging its back catalog. The company reported a profit of 528 million crowns, surpassing forecasts.
Feb 12 (Reuters) - Swedish video games group Embracer, which recently split into three listed companies, reported a quarterly operating profit above analysts' estimates on Thursday, as it relies on back-catalog titles to drive earnings.
CONTEXT
The Tomb Raider owner recently finished its split into three companies after a failed acquisition spree. Its board game business began trading as Asmodee at the start of 2025, while its independent game studios became Coffee Stain Group in December 2025.
WHY IT'S IMPORTANT
European video game groups are restructuring their operating models and game development processes. Embracer's French peer Ubisoft is also splitting into five creative divisions based on specific game genres, it said in January, flagging several game cancellations and studio closures.
KEY QUOTE(S)
"Our performance in the quarter was driven by strong execution across core IPs including Kingdom Come: Deliverance, Dead Island and Tomb Raider," CEO Phil Rogers said in the earnings statement.
BY THE NUMBERS
The gaming group reported an adjusted operating profit of 528 million Swedish crowns ($59.4 million) for its fiscal third quarter, well ahead of the 336 million crowns expected by analysts it had polled ahead of the release.
WHAT'S NEXT
Embracer expects to report an adjusted operating profit of at least 750 million crowns for the full year, compared to the previous guidance of at least 1 billion crowns, which had included now spun-off Coffee Stain.
The group said the release date of "Gothic 1 Remake" would be moved to June 5. The release was previously expected in the fourth quarter of the financial year that ends in March.
($1 = 8.8912 Swedish crowns)
(Reporting by Vera Dvorakova in Gdansk; Editing by Milla Nissi-Prussak)
Operating profit is the income generated from normal business operations, excluding costs associated with non-operational activities, taxes, and interest payments.
A back catalog refers to the collection of previously released games that a company can continue to sell and generate revenue from.
Restructuring involves reorganizing a company's structure or operations to improve efficiency, reduce costs, or adapt to market changes.
Quarterly profit is the net income a company earns during a three-month period, often used to assess financial performance.
A game release date is the scheduled date when a video game is made available for purchase and play by consumers.
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