Embracer's Q2 profit plunges amid restructuring push

Embracer Group reported a 79% plunge in second-quarter adjusted operating profit, as weak performance from new video game releases weighed on results amid a major corporate restructuring.

The Swedish gaming company said adjusted earnings before interest and tax for the July-September period fell to 109 million Swedish Kronor from 513 million a year earlier.

Net sales decreased 19% to 3.85 billion kronor, dragged down by significant declines in its PC/Console and Mobile Games segments, though this was partially offset by 17% growth in its Entertainment & Services division.

Chief Executive Phil Rogers said the results were in line with the company's own projections.

"Our Q2 results were in line with our moderate expectations, and our full-year outlook remains intact," he said in a statement.

The results come as Embracer proceeds with a plan to split into three separate publicly listed companies.

Shareholders recently approved the spin-off of its Coffee Stain unit, which is expected to be listed by the end of the year, after which the remaining business will be renamed Fellowship Entertainment.

Despite the quarterly decline, the company maintained its forecast to deliver at least 1.0 billion kronor in adjusted EBIT for the full financial year.