Embracer announces comprehensive restructuring program

Embracer Group announced a comprehensive restructuring program for FY 2023/24, running until the end of March 2024 that includes: Operational and financial measures to increase cash conversion, improve efficiency and reduce capex, reaching a financial net debt below SEK 10 billion by the end of FY 2023/24; Reducing capex by at least SEK 2.9 billion by FY 2024/25 compared to the run-rate of SEK 7.9 billion in Q4 FY 2022/23; Reducing overhead costs by at least 10%, or at least SEK 0.8 billion on a yearly basis, compared to the Q4 FY 2022/23 run-rate; Reiterating the previously communicated forecast of SEK 7-9 billion Adjusted EBIT in FY 2023/24; Measures will be implemented immediately and reach full run-rate from FY 2024/25; Matthew Karch appointed interim Chief Operating Officer, and Phil Rogers appointed interim Chief Strategy Officer, will co-lead the program planning and implementation.”Today we announce a comprehensive restructuring program that will enable us to realize untapped potential in Embracer Group and better optimize the use of our resources. Across the group, we are now initiating multiple actions to strengthen our cash flow generation and leverage our portfolio of IPs to become a stronger company and setting out on a stable future to build even greater games to the benefit of gamers and fans across the globe “, says Lars Wingefors, CEO and co-founder of Embracer.