Embracer’s Mobile Revenue drops 31% after selling Easybrain

UA costs rose to $60m, accounting for 61% of net sales.

Embracer Group’s mobile division saw a 31% YoY drop in net revenue, reaching SEK 943 million ($98 million) in Q4 FY2025.

For the full year, mobile game sales declined by 9% to SEK 5.35 billion ($553 million).

Earnings before interest and taxes (EBIT) for the mobile segment jumped to SEK 8.2 billion ($856 million), but adjusted EBIT fell significantly to SEK 91 million ($9.5 million), largely due to the $1.2 billion sale of Easybrain to Miniclip.

User acquisition (UA) costs rose to SEK 575 million ($60 million), making up 61% of net sales—an increase from 35% the previous year. Install numbers dropped from 248 million to 204 million, though daily and monthly active users stayed consistent at 28 million and 222 million, respectively.

Despite the revenue and install declines, Embracer reported 30% year-over-year organic growth, attributed to new game releases and higher UA spending.

Company-wide, quarterly net sales were down 6% to SEK 5.3 billion ($553 million), with EBIT falling to SEK 4.3 billion ($449 million). Adjusted EBIT rose slightly by 3% to SEK 1.077 billion ($112 million).

For the full year, net sales decreased by 18% to SEK 22.4 billion ($2.3 billion).

CEO Lars Wingefors emphasized the importance of capital allocation and noted positive shifts in mobile app store fees. He stated that the company is focused on becoming leaner and more future-ready, with plans to revisit capital distribution strategies soon.

Looking ahead, Embracer intends to spin off Coffee Stain Group by the end of 2025, continuing its strategy to build financial strength and long-term efficiency.

Source: PocketGamer