Embracer Q3 Report Presentation @ 9AM CET (3AM EST) 19-2-2020/2-19-2020

mjqjazzbar

mjqjazzbar

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Embracer Group hereby invites you to a presentation in connection with the publishing of the third quarterly report for the financial year, Oct-Dec 2019. The report will be published at 06.00 (CET) on February 19th.

The presentation will be held in English by CEO Lars Wingefors and afterwards questions are invited.

Date: February 19, 2020

Time: 09:00-10:00 (CET)

Place: Carnegie Hall, Regeringsgatan 56, Stockholm or via webcast and teleconference.

Please register for participation in person at Carnegie Hall: https://financialhearings.com/event/11779

Questions are welcome in advance by e-mail to: [email protected]

Link to webcast: https://tv.streamfabriken.com/embracer-group-q3-2019

Teleconference dial-in number SE: +46850558355, UK +443333009268, US: +18338230590

Please dial in a few minutes before the presentation begins. To participate, please state your first, last and company name. For questions during Q&A press 01.

For additional information, please contact:

Lars Wingefors, Co-Founder and Group-CEO

Tel: +46 708 471 978

E-mail: [email protected]

About Embracer Group

Embracer Group is the parent company of businesses developing and publishing PC and console games for the global games market.

The group has an extensive catalogue of over 130 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory and Wreckfest amongst many others.

With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its three operative groups: Koch Media GmbH, THQ Nordic GmbH, and Coffee Stain AB. The group has nineteen internal game development studios and are engaging more than 3000 employees and contracted employers in more than 40 countries. Embracer Group AB was renamed during 2019, formerly known as THQ Nordic AB.

Embracer Group's shares are publicly listed on Nasdaq First North Stockholm under the ticker EMBRAC B with FNCA Sweden AB as its Certified Adviser; [email protected] +46-8-528 00 399.

For more information, please visit: http://www.embracer.com

Invitation to Embracer Group’s Q3 pre
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We should finally have a good idea of where Shenmue 3 stands with regard to sales in November and December. The actual report is being published at 6AM CET, or 12AM EST (3 hours from now).
 
CEO Comments

OPERATIONAL EBIT INCREASED 54%TO SEK 302 Million

The Group had another stable quarter with growing profitability. Consolidated net sales were SEK 1,509 million (1,381). Our Games business area with Deep Silver, THQ Nordic and Coffee Stain grew revenue by 51%, generating net sales of 836 million (552) in the quarter. Key drivers behind this top line performance was the stable backcatalog sales from titles such as Metro Exodus, Wreckfest and Satisfactory, as well as a the new releases Darksiders Genesis and Shenmue III. Sales in the Partner Publishing/Film business area decreased 19% to SEK 673 million (828) due to the absence of larger releases to match last year. The business still performed better than management expectations due to notable performance of the Film segment.
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Net sales of the Business Area: Games – Deep Silver rose 150% to SEK 466.6 million.
New releases performed in line with management expectations in the quarter. The perfor- mance of back catalog sales was strong during the quarter, both digitally and physically and exceeded management expectations in the quarter.
Shenmue III was the principal Deep Silver revenue driver in the quarter, followed by another new release of Let’s Sing 2020. Moreover, Metro Exodus continued to give a significant con- tribution to Deep Silver’s revenue in the quarter, as well as other notable back catalog titles such as Kingdom Come Deliverance and Outward.
Looking ahead, the next quarter includes notable releases of the latest DLC:s for Deep Silver’s key IP Metro Exodus; Sam’s Story. The expansion of the Metro franchise will continue with the release of Metro Redux on Switch and the launch of Metro Exodus on Steam. Further releases in the coming quarter includes amongst others: Saints Row IV on Nintendo Switch, a s well as Blair Witch and Hunt: Showdown.
Milestone had a quiet quarter without any new releases, within the current quarter they have released Monster Energy Supercross 3.
Looking ahead, we are looking forward to the releases of MotoGP20 and Ride 4 in the coming period.
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Releases performed in line with expectations. Good news, I guess.

The wording suggests that S3 was Deep Silver’s best selling game during the quarter. According to Gamestat, Metro Exodus gained 207,400 new players in the quarter on PS4 alone. Factoring in PC sales, it probably sold more. This suggests sales of at least 207,400 on PS4.
 
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Good news. Would have liked some solid numbers on Shenmue III but I'll take that.

Primary Revenue driver sounds good, suggests some half decent sales. Will watch later to see if we get solid numbers or not.

I think we can breathe a small sigh of relief maybe
 
tomboz said:
Releases performed in line with expectations. Good news, I guess.

The wording suggests that S3 was Deep Silver’s best selling game during the quarter. According to Gamestat, Metro Exodus gained 207,400 new players in the quarter on PS4 alone. Factoring in PC sales, it probably sold more. This suggests sales of at least 207,400 on PS4.
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After last weeks news that’s somewhat encouraging.
 
tomboz said:
Releases performed in line with expectations. Good news, I guess.

The wording suggests that S3 was Deep Silver’s best selling game during the quarter. According to Gamestat, Metro Exodus gained 207,400 new players in the quarter on PS4 alone. Factoring in PC sales, it probably sold more. This suggests sales of at least 207,400 on PS4.
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This is where I'd love solid numbers just to throw at people saying the game is a flop.

If it's done over 200k sales in 1 quarter that's impressive stuff given everything the game has been through.
 
spud1897 said:
This is where I'd love solid numbers just to throw at people saying the game is a flop.

If it's done over 200k sales in 1 quarter that's impressive stuff given everything the game has been through.
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Unfortunately I don’t think we’ll get anything solid unless it gets brought up in the earnings call or if it breaks 500,000 sales. Some of the data we have suggests that the latter is possible, but until we hear something directly from DS, YS or CB, it is all speculation.
 
tomboz said:
Unfortunately I don’t think we’ll get anything solid unless it gets brought up in the earnings call or if it breaks 500,000 sales. Some of the data we have suggests that the latter is possible, but until we hear something directly from DS, YS or CB, it is all speculation.
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Shame but understandable.

Safe assumption is that it has met expectations and could have breached 200k sales. That's impressive and welcomed news.

Give us numbers lol
 
spud1897 said:
Shame but understandable.

Safe assumption is that it has met expectations and could have breached 200k sales. That's impressive and welcomed news.

Give us numbers lol
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I’d love some solid numbers, especially as this data is only up until the end of December. We’ve seen 25%+ growth in the six weeks since then meaning that if 200,000 copies had been sold by the end of the quarter we’ve broken 250,000 by now.

If S3 sales were significantly higher than sales of Metro Exodus (which the term ‘principal revenue driver’ certainly suggests), the game could have sold 300,000 in Q3 and be pushing 375,000 sales by now.

Ultimately, I agree that 200,000+ is pretty damn good considering the circumstances and any potential publisher/investor could hopefully see enough reason to invest. Heck, if sales met the expectations of DS, the idea that S4 is already being developed really doesn’t sound too crazy anymore!
 
Gamestat is better indicator for Metro than Shenmue? Guess it couldn't possibly be lower than actual sales, so basing Shen3 off their 207k number for PS4 Metro sounds very promising and optimistic!
 
Im running on 3 hours sleep here, but if that means i get to hear Shenmue 3 sold well, it will all be worth it. Ill buy myself a coffee later.

Hang in there people, we're almost there. If Shenmue 3 has met expectations and sold well and we hear that at the presentation, we're turning this thread into a party & celebration thread
 
xatruio said:
Gamestat is better indicator for Metro than Shenmue? Guess it couldn't possibly be lower than actual sales, so basing Shen3 off their 207k number for PS4 Metro sounds very promising and optimistic!
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Gamestat is fairly accurate for larger titles. Effectively, the more copies of a game in circulation, the easier it becomes for Gamestat to track them and the more reliable the data becomes.
 
So @tomboz or anyone else that’s been keeping an eagle eye on the numbers, based on the language in report what would be worst case and best case scenario, in terms of number of copies sold.
 
Someone fact check/double check everything im about to say

According to gamestat (which i dont like) Metro went from around 927k copies sold on November 19th to 1.4 million as of febuary 14th. That's like 470k additional copies if my mental math is working.

Im being conservative and gonna say if shenmue was a leading seller for Deep Silver, we must have broken the 200k mark by now. Does this make logical sense to anyone else or am i just talking shite? Super underslept here lol
 
ShenSun said:
Im running on 3 hours sleep here, but if that means i get to hear Shenmue 3 sold well, it will all be worth it. Ill buy myself a coffee later.

Hang in there people, we're almost there. If Shenmue 3 has met expectations and sold well and we hear that at the presentation, we're turning this thread into a party & celebration thread
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Cheers bro, just took a coffee here.
 
code l name said:
So @tomboz or anyone else that’s been keeping an eagle eye on the numbers, based on the language in report what would be worst case and best case scenario, in terms of number of copies sold.
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Worst case, the game sold terri but they expected it to sell poorly. It earned its title of principle revenue driver thanks to the big fat check that DS received from Epic for exclusivity.

Best case, they expected the game to sell 1m copies in its first quarter and it met those expectations.

Realistically it’s hard to answer that question. Some of the data points to sales around 500,000 while some as low as 60,000-70,000. A lot of the data does fall between 200,000 and 300,000 sales at the current time which seems most likely at this point, but it bout knowing any actual numbers nor what Deep Silver’s expectations for the game were, this report alone provides us with very little.

The significant thing to take away though is that however many copies the game sold, it seemed to meet the publisher’s expectations. This is good news.
 
Well it certainly sounds more positive than I was expecting. However, you've always got to remain skeptical without solid numbers because these reports are made with the intention of sounding good to investors / shareholders / whatever.

I really hope the 200,000+ speculation is accurate because that doesn't seem bad at all and could lead to .5M lifetime.
 
ShenSun said:
Someone fact check/double check everything im about to say

According to gamestat (which i dont like) Metro went from around 927k copies sold on November 19th to 1.4 million as of febuary 14th. That's like 470k additional copies if my mental math is working.

Im being conservative and gonna say if shenmue was a leading seller for Deep Silver, we must have broken the 200k mark by now. Does this make logical sense to anyone else or am i just talking shite? Super underslept here lol
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I did the same thing with Metro Exodus sales for the financial quarter earlier in this thread and that suggested that S3 had sold at least 206,000 (likely more as this doesn’t include PC sales of ME and were Shenmue 3 sales similar they would have likely highlighted ME and S3 together as the main revenue drivers.

Unfortunately we don’t know if the Epic money is included when calculating S3’s revenue here nor does this idea take into account that ME was 7 months old at the start of Q3 and so may have been even more heavily discounted than S3.
 
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