Embracer’s Asmodee sets mid-term targets ahead of spin-off

:Tabletop games publisher Asmodee, to be spun off from Swedish gaming group Embracer, on Tuesday forecast medium-term organic sales growth in a mid-single-digit percentage and an adjusted core profit (EBITDA) margin of above 18 per cent.
Embracer, the owner of the Tomb Raider franchise, said in April it was planning to split into three separate listed companies as part of its debt restructuring.
Ahead of its planned Stockholm listing, Asmodee will refinance 900 million euros ($952.6 million) of debt via capital markets and receive a 400 million euro equity injection following Embracer’s divestment of Easybrain, the parent company said in a statement ahead of its investor day.
The equity injection would reduce Asmodee’s pro forma net debt to 493 million euros and its leverage ratio to 2.2 times adjusted EBITDA, it added.
Embracer, like other game developers, thrived during the COVID-19 lockdowns, but has since been hit by development delays and poor reception of new titles.
The $3 billion price it paid for Asmodee in 2022 now matches the whole group’s market capitalisation, reflecting the impact of these challenges since the deal was closed.
Asmodee also said it aimed to distribute excess liquidity through dividends once it achieves a sustainable leverage ratio in line with its long-term financial targets.
($1 = 0.9448 euros)