Lord of the Rings IP proprietor Embracer Group has seen internet gross sales at its Leisure & Companies division fall by 15%, however is betting massive on Center-earth in coming years.
Leisure gross sales for the fourth quarter of 2023 (overlaying January to March 2024) have been SEK1.26B ($118M), down from SEK1.49B the earlier 12 months. Embracer famous the Center-earth Enterprises unit that homes Lord of the Rings was prone to make a “considerably decrease anticipated contribution” year-on-year than anticipated.
General, Embracer’s internet gross sales fell 5% to SEK8.88B, with the PC/Video games and Tabletop Video games items offering the lions’ share of income, and whereas there was a SEK20.38M EBIT loss, down from SEK95M a 12 months in the past. Adjusted EBIT was SEK1.3B, up 56%.
Similtaneously unveiling the outcomes, Embracer introduced CFO and Deputy CEO Johan Ekström had determined to step down, with Phil Rogers, who’s main the brand new newly fashioned Center-earth Enterprises & Mates unit stepping up as Deputy CEO. Müge Bouillon is the brand new CFO. Embracer just lately went via restructuring course of since final 12 months, and in April revealed it was splitting its enterprise in three, with Center-earth Enterprises & Mates housing Lord of the Rings and Tomb Raider rights. Shareholders are presently assessing the plan.
Embracer, which snapped up the Lord of the Rings and The Hobbit franchises via its August 2022 acquisition of Center-earth Enterprises, has made the information just lately following David Zaslav’s Upfronts announcement that Warner is making two new LOTR movies, the primary of which might be directed by Andy Serkis and known as Lord of the Rings: The Hunt for Gollum. Phoebe Waller-Bridge can be penning a Tomb Raider sequence for Prime Video — Embracer owns rights to the online game model via CDE Leisure.
Embracer co-founder & Group CEO Lars Wingefors admitted This fall had been an anticipated “quieter” interval for the Leisure & Companies division with “fewer new releases and merchandise in comparison with earlier quarters.” Nevertheless, he added: “We see nice potential within the Lord of the Rings IP and imagine the universe can turn into a key driver within the coming many years, with the goal to please followers throughout the globe. New Tomb Raider tales in streaming and movie will permit us to additional nurture and develop one other distinctive IP, taking it to new heights. Robust companions, equivalent to Warner Bros. Discovery and Amazon MGM Studios, that complement our capabilities, are an essential a part of our IP technique.”
Wingefors added that there was “vital untapped potential throughout the group, which I’m assured the brand new construction will unleash. [Games publisher] Asmodee, [indie gaming label] Espresso Stain & Mates and Center-earth Enterprises & Mates will all boast adequate scale, coherent methods and a clearer focus, paving the way in which to unlock worth in our high-quality belongings.”
