STOCKHOLM (Reuters) -Swedish gaming group Embracer on Thursday reported a weaker than expected operating profit for the April to June period but reiterated its full-year guidance as its restructuring program was on track.
Adjusted operating profit for the fiscal first quarter stood at 1.67 billion Swedish crowns ($152.75 million), lagging the 1.78 billion expected in a company-provided poll of analysts, but up from 1.32 billion crowns a year ago.
“We now have increased confidence regarding earnings this year and we are on track to deliver on the restructuring program,” CEO Lars Wingefors said in a statement.
Wingefors said operating costs increased due to inflation and the run-rate impact of prior-year recruitment.
After initially capitalising on a COVID-19-related boost in gaming demand, the company has had a difficult year with development delays, weaker demand and a poor reception for some of its new games.
In addition to a weak gaming environment, a $2 billion partnership it had called “groundbreaking” fell through in May, sending the company’s shares down 45%.
($1 = 10.9332 Swedish crowns)
(Reporting by Jesus Calero and Marie Mannes; Editing by Terje Solsvik and Edmund Klamann)
