Embracer Group: FY27 guidance light; a new spin-off announced

研报英文原文证据摘录

Embracer Group: FY27 guidance light; a new spin-off announced

Equity Research

European Media

20 May 2026

Embracer Group

FY27 guidance light; a new spin-off

announced

Embracer is now using "Cash EBIT" for guidance. While this is EMBRACb.ST/EMBRACB SS EQUAL WEIGHT

sensible, the "at least SEK1bn" guided on this basis for FY27 European Media NEUTRAL

compares to consensus (same basis) of SEK1.4bn. We think Price Target SEK 52.00

Price (19-May-26) SEK 69.46

that will be the focus but they beat in Q4 and now have a plan Potential Upside/Downside -25.1%

to split Embracer into two more listed entities. Source: Bloomberg, Barclays Research

European MediaEmbracer's 4Q26 is decent, with the company beating consensus on revenue (3%) and adjusted

Nick Dempsey

EBIT (34% but a small number), despite some impairments which landed in the quarter within

+44 (0)20 3134 5888

the adjusted numbers. The main reason for a beat was the distribution business (Plaion) which nick.dempsey@barclays.com

performed well with a couple of distribution titles doing well (which we believe are likely Barclays, UK

Crimson Desert from Pearl Abyss - released in March - and Resident Evil Requiem by Capcom -

released in February).

In the quarter, there was a negative effect of over SEK200m from non-cash adjustments and

reductions in active co-publishing and work-for-hire projects, as well as impairments of SEK -40

million on non-core IP hitting Adjusted EBIT.

But we think the focus will be on 1) new FY27 guidance and 2) a new spin-off plan.

FY27 - new measure used (Cash EBIT) but like-for-like the guidance is light

vs consensus

For FY27 guidance they are moving to a new measure: Cash EBIT. This equates to adjusted

EBITDA less capex less cash lease expenses. So it is like EBITDAC (as used by Stillfront, for