Embracer splitting into 3 companies; a Board Game Company, a AA Games Company & a AAA Games Company -
Asmodee
Asmodee is a leading international publisher and distributor of board games, trading cards and digital board games with 23 fully owned studios and 300+ IPs and constitutes the Tabletop Games operating segment of Embracer Group. As per LTM December 2023, Asmodee generated net sales of SEK 14.8 billion, with Adjusted EBITDA of approximately SEK 2.3 billion, EBITDAC of approximately SEK 2.0 billion, Adjusted EBIT of approximately SEK 1.9 billion and free cash flow after working capital of approximately SEK 2.1 billion.
After FY24/25 Asmodee has an ambition to grow organically in line with the market, which translates into a mid-single digit organic growth in addition to any acquisitive growth. Asmodee's ambition is also to expand its margins from current levels as a result of an improved revenue mix and continued cost management while maintaining a high cash conversion.
The spinoff of Asmodee with a listing on Nasdaq Stockholm is expected to have value-enhancing benefits through greater focus on its core strategy, portfolio and markets. The ongoing transmedia collaboration around Middle-earth and many other IPs is expected to continue after the completion of the spinoff. As a global leader in board and trading card games, with a proven track-record of profitable growth, Asmodee is well-positioned to build on its strategy and continue to prosper as a standalone entity. The spinoff is also expected to enable Asmodee to quicker resume its value accretive M&A strategy.
23 in-house studios develop tabletop games for all types of players across Social, Tabletop and Lifestyle, including a steady addition of new content to key brands. The catalog of 300+ owned IPs include the beloved board games Ticket to Ride®, 7 Wonders, Azul, CATAN, Dobble, Exploding Kittens and an extensive number of distributed games and IPs. Asmodee is also developing a wide range of licensed tabletop games based on The Lord of the Rings, Marvel, Game of Thrones, Netflix, Lego® and Star Wars™, including the recent successful trading card game release of Star Wars: Unlimited.
"Coffee Stain & Friends"
"Coffee Stain & Friends" is intended to consist of leading publishers and developers focused on a variety of games for PC, console and mobile, including community-driven free-to-play games, LiveOps games, and indie/AA games.
As a standalone company, "Coffee Stain & Friends" will be able to better showcase its high margin profile and strong cash flow profile coupled with an enhanced ability to resume and allocate resources towards opportunities to maximize the long-term value creation.
The entity will operate under two distinct segments: Premium and Free-to-play. Premium PC/console operations will include among other Coffee Stain, Ghost Ship, Tarsier, Tuxedo Labs, as well as THQ Nordic and Amplifier Game Invest. Intellectual properties include Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown, Valheim[4], as well as more than 200 other IPs. Free-to-play operations will include Easybrain, Deca, CrazyLabs and Cryptic. Intellectual properties include Sudoku.com, Blockudoku, Jigsaw Puzzle and many other IPs. Key published free-to-play games based on licensed IPs include Star Trek Online and D&D Neverwinter Online.
"Middle-earth Enterprises & Friends"
"Middle-earth Enterprises & Friends" is intended to remain a creative powerhouse in AAA game development and publishing for PC/console, and the stewards of The Lord of the Rings and Tomb Raider intellectual properties.
As a standalone company, "Middle-earth Enterprises & Friends" will operate as a more transparent entity, offering a better structure to maximize the potential of its highly strategic franchises, with focus on the Lord of the Rings and a number of other key IPs. Decision-makers will be closer to the organization, leading to enhanced capital expenditure management, accountability, and well-balanced investments to optimize financial performance and profitable growth over the long term.
"Middle-earth Enterprises & Friends" will be the home of critically acclaimed studios, including Crystal Dynamics, Dambuster Studios, Eidos-Montréal, Flying Wild Hog Studios, Tripwire, Vertigo Games, Warhorse Studios and 4A Games among many others. IPs includes Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro and Tomb Raider, among many others. The group will include PLAION, Freemode, Dark Horse and other businesses.
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