Embracer writes down its mobile arm by $190m as Easybrain sale causes earnings drop
Embracer Group, the Swedish gaming conglomerate, has taken a substantial financial hit in its mobile division, writing down its value by approximately $192.4 million in its latest quarterly and full-year financial report. The significant writedown follows Embracer’s $1.2 billion sale of Easybrain to Miniclip, which marked a strategic exit from a major portion of its mobile gaming business.
The divestiture has resulted in a dramatic contraction of the mobile segment’s revenue. In Q1, the mobile division generated SEK 682 million (approximately $72.5 million) in net sales—a 28% year-on-year decline attributable primarily to the Easybrain sale. Excluding the impact of this divestiture, the remaining mobile portfolio achieved modest organic growth of just 2% in Q1.
Despite the overall segment decline, Embracer’s remaining mobile operations continue generating revenue through established titles including Sled Surfers, Glow: Fashion Idol, Lamar Idle Vlogger, Flop House, and Party in My Dorm. These games are developed and operated through Embracer-owned studios including CrazyLabs, A Thinking Ape, and Deca.
The company has maintained “prudent” expectations for the mobile segment going forward. The writedown reflects both the reduced scale of Embracer’s mobile business following the Easybrain transaction and a broader market reassessment of the division’s valuation. This move underscores the volatile nature of mobile gaming markets and Embracer’s strategic recalibration following the divestiture of one of its most significant mobile assets.