Swedish games developer Embracer has announced its operating profit for the April to June period, which came in slightly below analyst expectations. The adjusted operating profit for the first quarter of the fiscal year was 1.67 billion Swedish crowns ($152.75 million), missing the forecast of 1.78 billion crowns. Despite this, the figure was an improvement from the 1.32 billion crowns recorded in the same period last year.
Shares in Embracer rose by 6.8% following the announcement, positioning the company at the top of the European 600 index.
The positive reception of some blockbuster games, including those based on the Lord of The Rings intellectual property, contributed to stronger sales than anticipated. Embracer’s CEO, Lars Wingefors, expressed confidence in the market’s underlying demand, citing the success of the newly-released game Remnant II as a factor contributing to a strong start to the second quarter.
Following challenges such as development delays and mixed reactions to new game releases, Embracer also faced the setback of a failed $2 billion partnership in May, leading to a significant drop in the company’s shares. The subsequent major restructuring plan, initiated in June, is reported to be progressing as planned.
Wingefors emphasized the company’s increased confidence in meeting its full-year adjusted EBIT guidance, supported by the positive performance in the recent period.