Embracer Group reported sales increases for Asmodee and declines for Dark Horse in its Q3 (July-September) financials, released this week.
Tabletop game sales were up 25% to $382.5 million for the quarter (all amounts converted from Swedish Krona at today’s exchange rate), with organic growth (i.e., not due to acquisition) of 15%. TCG sales (Asmodee distributes Pokemon in some non-U.S. markets) drove the increase, with low single digit worldwide growth for board games.
European sales growth outperformed sales growth in the U.S., the company said, with its boardgame sales up 12% and TCG sales up 22% in Europe.
Embracer did not reveal Asmodee’s U.S. sales change, but did report that the U.S. mass market for games was down 6% in the quarter (likely from Circana numbers), behind a 4% decline in the U.S. mass market for board games, with family strategy and kids games leading the declines.
Asmodee EBIT was up 291% to $38.3 million for the quarter, with improved cash generation due to a slower pre-holiday inventory build-up than last year.
Embracer’s Entertainment & Services segment, which includes Dark Horse Media, Middle-earth Enterprises, and a number of other businesses had a 76% sales increase, driven in part by licensing revenue related to the Magic: The Gathering Lord of the Rings set.
Dark Horse’s contribution to organic growth in the segment was negative, the company reported, attributed to slower backlist sales for graphic novels.
Embracer Group company-wide sales were up 13% for the quarter, generating a loss of $52.8 million, related to financial items and restructuring costs. That’s a big drop from the $223.8 million profit in the year ago quarter.
Embracer Group made a profit in the previous quarter (see “Asmodee Sales Up in Quarter”).
Source: ICv2
