According to the financial report of the second quarter of 2025 issued recently by Embracer, the Swedish game-publishing giant, the second quarter net sales in the sub-flag mobile game sector decreased by 63 per cent to SEK 520 million (approximately US$ 54.4 million) over the same period, mainly as a result of the separation of the EAsybrain business.
Embracer ‘ s pre-adjusted interest tax profit of SEK 55 million (approximately $5.8 million) decreased by 89 per cent over the same period, with a profit rate of 11 per cent. Declining profitability reflects the combined effects of higher user acquisition costs (50 per cent of net sales) and lower revenues.
The total number of mobile games installed under the Embracer flag was 152 million, down 34 per cent from 248 million in the same period last year. Embracer ‘ s cost of acquiring SEK 575 million this quarter represents 61 per cent of net sales, up from 35 per cent last year. 11 million active users per day, a decrease of 59 per cent over the same period (compared with 28 million in the same period last year) and 123 million active users per month, a decrease of 41 per cent over the same period (compared with 222 million in the same period last year). The decline in the above indicators is due in part to the separation of Easybrain, as well as to increased competition in the overall market and the slow pace of new game release.
The five games with the highest revenues this quarter are: Glow Fashion Idol, which is more than expected and becomes the main source of income; Coffee Mania; Bus Frenzie – Traffic Jam, where Crazy Labs takes over the distribution rights; Alien Ivasion; Party In My Dorm. These games rely mainly on free value added, advertising and the application of in-house purchase business models, in which mixed leisure games such as Bus Frenzy and Alien Invasion are particularly prominent, leading to organic growth in the mobile sector.
Easybrain, a mobile game developer focused on free value added and advertising, sold to Miniclip in January 2025 for $1.2 billion. Easybrain is an important source of income for Embracer ‘ s mobile sector and its separation directly results in a significant decline in net sales and user data. Nonetheless, Embracer states that the removal of the impact of detached assets has resulted in an organic growth of 30 per cent in the mobile sector, indicating that surplus operations (e.g., DECA Gomes and CrazyLabs) still have growth potential.
Embracer is in the process of major restructuring, including the planned stripping of Coffee Stain Group by the end of 2025 and the transformation of the company into a “Fellowship Enterprise”, focusing on core IPs such as The Ring King and The Mirage of the Cemetery. These initiatives are aimed at increasing efficiency and long-term resilience.
Embracer noted that the improved cost dynamics of mobile application shops support future growth, but macroeconomic uncertainties and competitive pressures may affect user participation. Embracer anticipates that the mobile sector will enter a “growth model” in the second half of the financial year 2025, in particular by increasing the ratio of user access to sales and achieving a positive return on investment by investing in games such as Bus Frenzy.
