Dark Horse Media and Middle-earth Enterprises parent Embracer Group reported a $2.5 million loss (all amounts converted from Swedish Kronor to dollars at today’s exchange rate) for its July-September fiscal Q2, with market conditions described as “challenging” for Dark Horse Comcs. The quarterly loss came on sales of $420.5 million, an 18% decline from the same quarter last year. Embracer Group had $46.1 million in losses in the first six months (April to September) of its fiscal year.
Dark Horse Media and Middle-earth Enterprises are in Embracer’s Entertainment & Services Segment, which showed a $3.83 million operating loss for the quarter on a 17% increase in sales to $155.6 million. The company’s quarterly report notes that for companies in the segment with a higher share of sales of physical products, “market conditions are …challenging, impacted by U.S. tariffs and macroeconomic developments,” which we interpret as referring to the Diamond bankruptcy in the case of Dark Horse. “Several strategic initiatives are ongoing to drive improved medium to long-term profitability,” the quarterly report said of those companies.
Embracer Group plans to spin off Coffee Stain Group, which will include some of the company’s video game assets and rename itself Fellowship Entertainment before the end of the year (see “Restructured Dark Horse Parent“).
Source: ICv2
