Tomb Raider owner Embracer's CFO to step down as Q4 sales miss forecast

By Jesus Calero and Agnieszka Olenska

(Reuters) -Swedish games developer Embracer said its finance chief would step down due to personal reasons, after the Tomb Raider franchise owner's fourth-quarter sales missed market expectations on Thursday.

Embracer, like other gaming groups, benefited from growing demand for video games during COVID-related lockdowns, but has since been hit by development delays, falling demand and poor reception for some of its titles.

Its shares, which have lost 80% of their value since their peak in 2021, were trading 8% lower at 0837 GMT.

Chief Financial Officer Johan Ekström will be replaced by deputy CFO Müge Bouillon on Sept. 1, but will remain with Embracer until March 31, 2025, the group said in a statement.

"Ekström will be in a supportive role, assisting with the separation of Embracer into three separate companies, ensuring they are executed on time with the right people," CEO Lars Wingefors told Reuters in an interview.

He did not rule out that Ekström could return to the company in an unspecified role in the future.

Wingefors, who is also the largest shareholder of Embracer, said it was too early to discuss the specifics of his own role following the split, but assured he would maintain a significant influence in the group.

Embracer, which is developing a multiplayer online game based on fantasy series The Lord of The Rings, said its revenue fell 5% to 8.9 billion Swedish crowns ($827 million) in the quarter through March. That was 5.4% below analysts' average forecast provided by the company.

Its adjusted operating profit grew 56% to 1.4 billion Swedish crowns in the same period, in line with expectations.

Wingefors said the restructuring drive Embracer embarked on last year, which included selling game studios such as Gearbox and Saber Interactive, was over and there were no plans for further major divestments.

Jefferies analysts wrote that Embracer's performance was underwhelming across its businesses, while the outlook remains uncertain due to leadership changes and reorganisation.

($1 = 10.7347 Swedish crowns)

(Reporting by Jesus Calero and Agnieszka Olenska in Gdansk; editing by Milla Nissi)