# Tomb Raider games group Embracer lags forecast, maintains outlook
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-08-17
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Embracer Reports Weaker Profit but Maintains Full-Year Outlook
Meta Description: Swedish games developer Embracer reported slightly weaker than expected profit for April to June but is confident in its full-year guidance and restructuring
URL: https://financedigest.com/tomb-raider-games-group-embracer-lags-forecast-maintains-outlookhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-08-17t082745z2lynxmpej7g09srtroptp4embracer-group-results-1736813656064-compressed.jpg)

By Jesus Calero and Marie Mannes

STOCKHOLM (Reuters) -Swedish games developer Embracer on Thursday reported slightly weaker than expected operating profit for the April to June period but reiterated its full-year guidance, saying its restructuring programme was on track.

Shares initially rose by around 8%, but almost immediately reversed and were flat at 0812 GMT.

Adjusted operating profit for the fiscal first quarter stood at 1.67 billion Swedish crowns ($152.75 million), lagging the 1.78 billion expected in a company-provided poll of analysts, but up from 1.32 billion crowns a year ago.

“We now have increased confidence regarding earnings this year and we are on track to deliver on the restructuring programme,” CEO Lars Wingefors said in a statement.

Wingefors said operating costs increased due to inflation and the impact of hiring last year, which had been partly offset by restructuring.

After a boost linked to COVID-19 lockdowns that drove demand for gaming, the company has had a difficult year with development delays and a poor reception for some of its new games.

In addition, a $2 billion partnership it had called “ground-breaking” fell through in May, sending the company’s shares down 45%.

The company last year bought several development studios and the intellectual property rights to a new Tomb Raider edition as well as to Lord of The Rings games.

Redeye analyst Viktor Lindstrom said licensing revenues from Lord of the Rings had helped to [drive some “stronger sales than expected”](https://www.financedigest.com/uks-halfords-expects-pricing-efforts-to-drive-profits.html "UK’s Halfords expects pricing efforts to drive profits").

Analysts also said the company had made progress towards its financial targets and expected enhanced free [cash flow](https://www.financedigest.com/aegon-bets-on-transamerica-to-boost-cash-flow-and-dividend-in-2025.html "Aegon bets on Transamerica to boost cash flow and dividend in 2025") in the second quarter.

($1 = 10.9332 Swedish crowns)

(Reporting by Jesus Calero and Marie Mannes; Editing by Terje Solsvik, Edmund Klamann and Barbara Lewis)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---