Embracer Group AB (publ) (EMBJ) Q2 FY2026 Earnings Call Transcript & Summary

Welcome to Embracer Group Q2 Interim Report 2025/'26. [Operator Instructions] Now I'll hand the conference over to CEO, Phil Rogers and CFO, Muge Bouillon. Please go ahead.

Thank you, and good morning, everyone, and thank you for joining our webcast today to cover our Q2 results. Muge and I are talking to you today from our Stockholm office again. We have a short presentation to cover the main beats for our operating segments and look at our financial performance and in closing on some key steps looking ahead, before turning over to Q&A. But with that, we'll get straight in. This covers really the highlights for Q2. So overall, our group Q2 results reflect a soft quarter for new PC console releases. Net sales were SEK 3.8 billion, which represents 19% year-over-year decline but a 6% organic growth when we consider the impact of our divestments and FX. And amongst that, we saw solid performances from 2 really important IPs. We saw strong merchandising sales within Middle-earth Enterprises and on Kingdom Come: Deliverance, we were delighted to see increased engagement with gamers throughout the quarter. The team had a good plan and delivered it. Our adjusted EBIT was SEK 109 million now this is down from SEK 513 million reported in Q2 last year or down from SEK 247 million when we factor in the divestments. Our free cash flow generation over the trailing 12 months or TTM stood at SEK 1.3 billion. Our balance sheet remains strong. Muge will, of course, talk more about this shortly. Now looking beyond the data, and as we've covered in our Q1 update, the recent AGM and our report this morning, this is a transformative time for our group. Coffee Stain is on track for its separate listing with its digital capital markets event being held on Monday next week. On the strategic side, we've now completed the SEK 500 million share buyback program. We will continue to prioritize the distribution of excess cash to shareholders. Now with the Coffee Stain Group spin-off scheduled for December, our transformation to Fellowship Entertainment comes into full focus. We will hold on the most exciting IP portfolios in the industry with globally recognized franchises, including Lord of the Rings, Tomb Raider, Kingdom Come: Deliverance, Metro, Dead Island, Darksiders and Remnant. In an IP first organization, one where we will operate with greater share and alignment, it really is now about forging our fellowship. To me, this quarter shows progress but also shows clearly where focus is still needed and we're committed to strengthening profitability and unlocking long-term value. Now we'll move into the operating segments. I'll start with PC console, where we saw our Q2 net sales were SEK 1.9 billion, which is a 4% organic decline. Now whilst on this graph, it looks like this is primarily due to the lower back catalog revenue. Operationally, it was really the overall soft or weak performances of new releases this past quarter, which left us in decline. Catalog held up well against our plan, driven by KCD, Kingdom Come: Deliverance II. The biggest new game this quarter was July's release of Killing Floor 3, and we already noted the softness in that launch when we spoke to you in mid-August. We launched 2 -- well, fan frustration with early performance issues in a game which we now realize have perhaps changed too many core ingredients at once. Now we have to learn from this to turn it around, performance and stability, plan alignment and providing a robust slate of new content and events will be key, things which contributed to the franchisees significant past success. Our Tripwire is committed to restoring core fan trust, there is a plan, and we're on it. Kingdom Come: Deliverance II top to our catalog performance this quarter. Fans gave a great reaction to the games, Legacy of the Forge DLC, and this helped push our sales. Just yesterday, we announced we've now passed the 4 million unit sales mark coming a day after the third DLC dropped Mysteria Ecclesiae. This is great timing for the upcoming holidays and the award season. We want this to be one of the success stories of the year for players, the amazing creator Warhorse and our wider group. Titan Quest II also finished Q2 above plan. Titan Quest II entered early access on PC, and we're now planning the full release, including consoles. And just quickly beyond the quarter, but a worthy callout is the multiplayer online Dungeon adventure game Fellowship launched in October to positive reception potential. Just finishing on the slide and to talk to our adjusted margin, well, our adjusted margin shows the challenges we face with soft new releases. Not shown here but reported this morning, the finalized value of completed and released games during Q2 was actually at one of the highest levels for quite some quarters. New CapEx spend was actually the lowest we've seen over that same time, reflecting a new approach to capital allocation and control. But going back to the margin, the value of completed games obviously drives a higher amortization charge in the period and this hits the margin when overall new sales fall short. Now we know this is not a sustainable margin. We know our PC console operations need to improve. And this slide now shows that very same challenge. This quarter's releases are shown on the far left of this graph at 0 quarters since release. We need to, and we will work hard to get those titles to breakeven and beyond. We show this slide for consistency and the consistent message is we're not happy with how our returns have been trending and those returns must improve. And to that end, we focus on 3 key priorities: investing in core IPs, operational discipline and targeted cost initiatives. On to the PC console pipeline. And as of today, we've got 32 announced titles. It was great to see gamer reaction to the REANIMAL demo, gamers exploring some of the opening chapters of the game, enjoying themselves a lot based on what I've read on forum feedback. Now this is a really busy time for our teams with award events and other industry events, and our teams have more news to share in the coming weeks on upcoming releases, including locking in release dates. We're excited by our near-term and our longer-term pipeline with a range of major products based on core IPs launching over the coming years. An improved release slate will be one key to drive stronger profit and cash generation ahead. We'll move now to mobile. For mobile, we delivered SEK 535 million in net sales, a 1% growth factoring in FX and the divestment of Easybrain. It is also a positive trend when you look sequentially Q1 to Q2 this fiscal year on this slide. I use the words smart and careful to describe how our teams at DECA and CrazyLabs approach the first quarter, and I continue that sentiment today for Q2. We saw some positive successful scaling of Flop House, a new hybrid casual game from CrazyLabs and Glow Fashion Idle was again our top-performing revenue title this quarter. However, before pushing for scale, the team is taking some more time for technical fixes and game improvements. Overall, we're confident of future growth. Now we'll look at Entertainment & Services, where the segment grew 25% organically. The strong top line growth was driven by PLAION Partners. Whilst Middle-earth Enterprises did not have any new product releases, our merchandising and licensing made a solid adjusted EBIT contribution. The Middle-earth team continues to build a strong pipeline across multiple product verticals and after the quarter, entered into a strategic agreement with Asmodee. Under the agreement, Asmodee will manage the tabletop games and accessories category for the Lord of the Rings and the Hobbit. This collaboration builds on our long-term relationship with Asmodee and enhances our ability to reach, engage and delight fans with the very best tabletop game experiences set in the world of Middle-earth. And with that, I'll hand over to Muge.

Thanks, Phil. Good morning, everyone. Before I start once again, I'd like to remind you that the reading of our financials continue to be impacted by divestments affecting comparability with prior periods. As I take you through the results, I'll also provide some clarity on the underlying trends and performance on a like-for-like basis. Looking at net sales. Net sales for the quarter of SEK 3.9 billion were impacted by both the divestments and FX translation effects. If we exclude these effects, our organic and pro forma growth stands at plus 6%. For context, Q2 last year included around SEK 800 million from the divested entities, primarily Easybrain. Our Entertainment & Services segment led the quarter with plus 25% organic and pro forma growth driven by a strong performance of PLAION's partner distribution business supported by Sony PlayStation as well as merchandise sales in Freemode. CrazyLabs drove moderate organic growth of 1% year-on-year in mobile, while this was partly offset by PC console, which was down 4% year-on-year pro forma. Gross margin for the quarter was 67%, down 6 points year-on-year. The impact of divestments was the primary driver, accounting for a reduction of 5 points year-on-year. The remaining 1 point decline was mainly related to segment mix, while PC console gross margins were up 8 points and mobile was largely stable year-on-year on a like-for-like basis, this was more than offset by the increased share of entertainment services in the segment mix. Looking at marketing. Total marketing spend was SEK 406 million or 11% of net sales, down 5 points year-on-year, almost entirely driven by the effect of divestments. Non-user acquisition cost marketing of SEK 165 million decreased slightly by SEK 14 million year-on-year, while user acquisition cost investments dropped by SEK 350 million to SEK 241 million, driven by the Easybrain divestment. Easybrain accounted for SEK 389 million in Q1 last year. Excluding Easybrain, user acquisition costs represented 45% of mobile net sales, up from 35% last year, but largely stable sequentially compared to Q1. Looking at operating expenses. Operating expenses, excluding marketing, were SEK 1.2 billion, down SEK 180 million year-on-year and representing 31% of net sales. Q2 last year included SEK 112 million of OpEx from divested entities. On a like-for-like basis, OpEx decreased by around SEK 70 million and improved slightly by 1 point as a percentage of net sales. As I've said in previous quarters, this remains a key focus area as we continue to maintain tight control over our cost base. This all delivered an adjusted EBIT for the quarter of SEK 109 million, in line with management's expectations. Last year's Q2 included SEK 265 million from divested entities. Aside from the divestment effects, adjusted EBIT was impacted by the soft PC console top line, as we mentioned, and the resulting segment mix shift towards entertainment services, which impacted margins. Overall, this led to an 8-point impact in adjusted EBIT margin or minus 3 points when we exclude the impact of divestments. Turning now to cash. Free cash flow after working capital of minus SEK 348 million was slightly better than Q2 last year on a reported basis, but significantly improved on a like-for-like basis, considering that divested entities contributed around SEK 225 million of positive free cash flow in Q2 last year. This improvement was driven by a lower net working capital increase compared to last year, mainly related to inventories as well as lower CapEx. On a trailing 12-month basis, at the end of Q2, free cash flow generation stood at around SEK 1.3 billion. Looking below free cash flow, the cash flow from financing activities of SEK 180 million in Q2 includes SEK 72 million related to the repurchase of own shares under the SEK 500 million share buyback program announced at the AGM on 18th of September. As Phil also mentioned, as of Friday, November 7, we have repurchased 480 million of B Class shares for a total consideration of SEK 500 million. The program has thus been completed and is now closed. Net cash flow from acquired or divested companies relates to the payment of earn-outs from past acquisitions. The significant inflow in Q2 last year relates to the net proceeds from the divestment of Saber Interactive. At the end of September, this resulted in a net cash position of SEK 4.2 billion and available funds of SEK 11.9 billion. Looking ahead, we have reiterated today are forecast provided in Q1. We still expect to deliver at least SEK 1 billion of adjusted EBIT for the year, including the contribution of Coffee Stain Group. This forecast reflects a Q3 performance that is expected to be somewhat stronger than Q2, driven by stronger seasonal performance in the Entertainment & Services segment. Although with continued limited profitability in PC console. We also expect a continued buildup of working capital in the third quarter. We're excited by the reception of the recent demo of REANIMAL and our teams across the group are working hard to deliver the game to its full potential. Our midsized PC console releases including REANIMAL and Gothic 1 Remake, are weighted towards Q4. This is anticipated to drive a solid free cash flow in the last quarter with some phasing into Q1 next year. I just wanted to note at this point also that following their anticipated listing in December and beginning with our next quarterly report, Coffee Stain Group is planned to be reclassified to discontinued operations, and they will be excluded from future financial reports. And talking of Coffee Stain Group, the spin-off process is progressing well, and we remain on track with our plans for a listing in December. We recently published Coffee Stain's information brochure and at the AGM on 3rd of November, shareholders resolved to distribute all Coffee Stain Group shares held by Embracer. We were also happy this week to receive confirmation from NASDAQ that Coffee Stain Group has been assessed to meet the listing requirements for the First North Premier growth market and the application for listing will be approved, subject to customary conditions being met ahead of the listing date. We are now very much looking forward to the digital Capital Markets event, which will be held on Monday. There will be presentations from Anton Westbergh, CEO; Erik Sunnerdahl, CFO; alongside other members of their management team. This will be an important milestone in Coffee Stain's journey to becoming an independently listed company, and we hope you will join us for this exciting event. I will hand back now to Phil for some closing remarks.

Thanks, Muge. And this brings us to our last slide today, just some closing remarks. And I'll say again that whilst this quarter shows progress, it also shows where focus is still needed, and we're committed to strengthening profitability and unlocking long-term value. And we believe how we do that is captured really in our 3 priorities. And that's investing in our core IPs in ways that delight fans, operational discipline, and targeted cost initiatives. Now IP-led or IP first, really the focus is on building a business led by key IP and empower teams in a structure enabling focus and that operational discipline. It's paramount that we concentrate on the quality and long-term value of our releases and not chase short-term gains. The belief across our creative and business teams is that, we have IP which can entertain and engage fans for years to come. This is why people come to work every day and what they're passionate about. We're building from a position of strength, and we are making progress, but of course, we have more to do, and we aim to talk more about our opportunities and strategies in due course. And that really brings an end to our notes this morning. Before we hand over to Q&A, I'd just like to express my thanks to all our teams across our group for their hard work, dedication and passion. And now we'll hand over to Q&A.

[Operator Instructions] The first question is from Thomas Nilsson from Nordea.

I was just wondering if you can provide some more color on the path to your full year guidance. You maintained your full year adjusted EBIT guidance of SEK 1 billion in adjusted EBIT, but only achieved SEK 184 million in the first half of the year with 3% margins. So could you give some more color on the specific titles and revenue drivers that gives you confidence in achieving SEK 800 million plus in the second half of this fiscal year?

Sure. Thanks for the question. As you know, we had already indicated that the release windows of key games are weighted towards the second half the year with now more weighting into Q4. So clearly, Q1 and Q3 were supposedly already be a quieter quarters, on a lower portion of our full year results. So in the presentation, you have seen already some dates given for some of the releases, which are already happening between Q3 and Q4. So it is a fact that the coming quarters weigh more than H1 of this year. It's going to come from our underlying business, on platform deals, new releases, and we have also integrated a certain factor of risk, obviously, in our assessment of SEK 1 billion that we maintain.

And then final question, if I may. Free cash flow in Q2 was weaker due to seasonal working capital buildup. And given the Q4 release pipeline, what's your updated view on the full year free cash flow generation for the group?

What I can say is that we will be building inventory on PLAION, Dark Horse, Entertainment & Services across Q3, so we expect the free cash flow pattern in Q3 to be somehow in the same direction as Q2. Q4 will benefit from the releases, the increased performance, strong seasonality also. But some of it will shift into next year. We still expect a solid free cash flow during Q4.

The next question is from Nicolas Langlet from BNP Paribas.

Yes. I've got 3 questions, please. First of all, Phil, as the Coffee Stain spinoff approach, and you will certainly focus on Fellowship. But what are your latest thoughts about the vision, positioning and scope of operation for Fellowship? Secondly, you reiterated this morning that you want more [ creative tool ] with increased collaboration between the different studios. What has been the feedback from the studio leaders? And how you make sure that they are fully committed to this new centralized approach? And also, how long do you think it will take to reach an optimal level of collaboration between the studios? Are we talking about months, quarters or years? And finally, can you update on the collaboration with Amazon Games and whatever the recent reorganization at Amazon is affecting your collaboration on some [ Rainbow ] games or Lord of the Rings, MMO? And are there any contingency plans if Amazon decides to further sell down their gaming business?

So I'll take those. Thank you, Nicolas. Good and big deep questions there. So I'll do my best to cover them. I'll perhaps start with the quicker one about Amazon Games. I mean Amazon Games remains our publishing partner. Absolutely, we saw, as everyone saw their news a couple of weeks ago about the changes. We read the same notes that perhaps we've all read. But internally, we continue absolutely in the same track. It's a very important game for us. Our teams are absolutely dedicated to deliver at these games and we work hand-in-hand with Amazon through that. So there's really no change there, and that's important to emphasize. The broad questions about fellowship and the cohesive approach, they really sort of go hand-in-hand. And I perhaps just perhaps answer that by thinking about sort of how we want to plan IP and then that naturally leads to deeper collaboration or less collaboration. It's not like there will be one size fits all, like everything will be shared and whatnot. But when we think about an IP, again, I'll use the example of Middle-earth because it's so sort of expansive and story-driven. But you can imagine how game series will be created, whether it's an action adventure series or an action RPG or new game experiences that our teams want to create. So I think that requires just in itself a level of collaboration, we want players to feel in many years from now because we know how long some games can take to develop that there was a cohesive feel that actually, we thought about it from the get-go that things built on each other and things work together in harmony versus having individual experiences. And through that level of collaboration, we think we'll get faster, we'll get better. We'll be able to tune mechanics and really sort of leverage and work very collaboratively. So that is an IP where sort of a level of cohesion and coordination feels right, and the reaction from the studios is in line with that. There's a level of excitement. There's excitement because we're working on such a major IP. Of course, it's a new way of working. So it will take time. But there's common DNA in a lot of our studios. Studios want to try and produce great content. And if we're sharing smart, if we have some level of shared services where we're getting across more and sharing and understanding whether it's knowledge, whether it's technology, then these are seamless solutions. And our game creators, our studio leaders want to be as effective as they can be. So it's a very clear and deliberate pivot for us. It's a natural pivot for us as we move from that broader Embracer group as we talked about and through spinouts and the Coffee Stain spinout will be the second and how we really then sharpen focus around Fellowship Entertainment. So, so far, it's good feedback and that's what we're very committed to deliver.

The next question is from Nick Dempsey from Barclays.

I've got 2. So the first one, just as a follow-up on the free cash flow question. You're pretty clear it's going to be decently negative this year, given some timing into perhaps the first quarter of next year, do you have confidence at this stage that you'll be able to deliver positive free cash flow in the year to March '27? And then the second question, in mobile, you showed some positive growth in Q2, which was good, but the comps get quite a lot tougher, if I'm right, in the second half. So should we be looking at mobile expecting it to see an organic revenue growth reasonable decline in the second half?

Thanks. I'll take the first question. As I explained for the free cash flow, we have got already several factors. There is a seasonal buildup of working capital, which is part of the business and which we have already factored and which we do factor. We do expect some working capital improvement in Q4, but some cash flow phasing into Q1 next year due to PC console releases, as we have said. Now there are several factors. As you know, some of the release windows aren't announced yet. Many things to take into consideration with regards to how much and what slips and so on. What I can say is that we remain in tight control of our both P&L and cash flow. We are very happy with the progress we have made until now, and we will do our best to convert maximum level of cash resulting from our activities.

Yes, I think the mobile question, yes, it's important to talk about and to note that sequential quarter-on-quarter. We know there are some tough comps given the divestment of Easybrain. But we're confident of the growth. Again, we've seen positives with relatively new title in Flop House and now we're getting ready to scale really around Glow. So it's a very dynamic market, but we've got a very talented team there, and we expect to deliver on that growth.

The next question from Simon Jönsson from ABG Sundal Collier.

So I have a few. First, I wonder, if we look at the back catalog in PC console here, if there were any impact from platform deals this quarter or if this was relatively clean of that effect here in this quarter?

You mean for Q2, right?

Yes.

Yes. Well, I mean, this -- you can consider this as a standard quarter that we left aside. So nothing major to mention.

All right. And then I wonder if you can explain a bit more about the Asmodee partnership because obviously, you have been collaborating a lot historically, Middle-earth and Asmodee. So I just wonder what you -- with this partnership, what you aim to change or into the future? Do you want to see more board game releases? Or is there anything else that will change in terms of this partnership you have announced or deepening partnership you have announced? Because, yes, as I mentioned, you have already collaborated a lot historically. So what should we expect in terms of changes?

I think it's moving in the same direction in travel. I mean we see Asmodee as a -- and we've always talked about this a world-class business, and we have a world-class IP in Lord of the Rings and The Hobbit. So it's a natural extension. I'd say it's a deepening. We don't have the full capacity at Middle-earth Enterprises to develop that. So Asmodee as a partner is a natural selection. I think getting closer in terms of how we share lore and creative to really sort of get those sort of creative brains to fuse and bring even greater games to the market is really the goal and the ambition here. So it's a natural extension, and it really formalizes what we've been working on in the past, and we see it as a very important category, and we're pleased to announce it and pleased with the reaction internally by our teams as well.

All right. Makes sense. Then lastly, on capital allocation, and you wrote in the report that you -- I think you wrote that you expect to continue to distribute cash or aim to do that, at least excess cash and the buyback program just ended. So my question is, when will you come back with more sort of clarity around what you want to do going forward? Should we expect that you will wait until after the Coffee Stain spin-off and share more? Or how should we think?

Well, as you said, we've just completed the share buyback program that we had announced at the EGM. And as you also mentioned, we've got the listing of Coffee Stain Group lined up just happening next month. So until then, there isn't anything that can -- just even from a technical stand can happen. But as we said previously, we keep exploring and assessing all options and all options are on the table, and we will not hesitate in seizing opportunities to optimize and maximize shareholder value. So we will be getting back to you once we have assessed those options and that there is a likelihood that we continue to see such optionality.

The next question is from Jesper Stugemo from Handelsbanken.

So my first one here is related to Gothic 1 Remake and REANIMAL. So maybe if you could just clarify a little bit on the releases here. I think it's still some uncertainties around the release date here. So what criteria is needed to be met for them to launch this year? And how important are these 2 for the SEK 1 billion adjusted EBIT guidance for this year?

Well, let's -- I'll take the sort of product ones and then we can we'll get to the second point of your question. I mean, both are really key games for us. They're on track. REANIMAL had a really great demo. I mean it's amazing today how -- with how much choice gamers have for their time, but to launch a demo and see the scale and the feedback from players was just incredible. So it's given us a lot of confidence, a lot of optimism on that title. We think the team at Tarsier is doing an amazing job. And it's really galvanizing for the team as well to see players play. And that feedback, of course, gives them a little bit of a lift and a bit of a tailwind. So again, talking a little bit more about how we're working now. There's a broader team looking in these final stages. Muge referenced this, how do we deliver it to its full potential. We really see that there's real scale there. And similar with Gothic, of course, a very different genre, a known IP, a very important remake on a very venerable IP. But again, there's lots of collaboration to get this game over the line and deliver that one to the full potential. So both are very important. Both are on track. We're working in a way more collaborative way now than we have done in the past, and we're excited about them. I think to the important question, I mean, both are important. We do have some sort of adjustments in our models for optionality and stuff on that SEK 1 billion. But I think they're both together important titles for that target.

Maybe what I would need as well is that we've mentioned that -- so we've got a stronger seasonality in entertainment services in Q3 and also PC console to be more impactful in Q4, again, driven by major releases, but also we've got some platform deals where we have already visibility on. So we feel confident about the EBIT direction that we have shared and that we maintain.

All right. And if you could say something around the probability of the release of these 2 games percentage-wise in Q4 versus Q1. Could you comment anything around that or...

I don't really -- I understand it's a very fair question, but I don't really want to get into percentages. I think it's not something that we want to get drawn into. We are -- I mean, again, I'll go back to demo. That was obviously a piece of finish code, and we take a lot from that in terms of how we finish off and how that is all scheduled with the team. So I think we've got good indicators, and we're on that final stretch now.

Yes. All right. And my second question is related to head reductions due to shutdowns. You took SEK 50 million in this quarter. So how long have you come in this journey to make the organization leaner? And how should we view such costs going forward?

Thanks for pointing that out. It's always a double edge data point really when you look at that reduction and we think about the teams involved. But you can see that as -- it has been a trend now over multiple quarters that the headcount is coming down, the studio count is coming down. And we do see that running forward into the future. I think we -- as we -- again, I'll come back to the Forge, the Fellowship and how we really think about that in a near term now final form, that will give us that perimeter. But I think we do expect that headcount headline number to come down over the foreseeable future. And that's just an alignment we've got. It comes back to our -- we talk about our key priorities, investing in core IP, this operational discipline and the targeted cost initiatives. This is the world that we're in. We see those operating margins in PC console, and we've got to really drive towards them changes that get those margins up. So of course, there's a balance there and need, but I think we'll see that headline coming down, as I say, for some time.

All right. And just 2 questions more here. Wondering a little bit around the PC console pipeline. Perhaps if you could give some details more on projects that you have left in the pipeline here initiated back in 2021, 2022, which might have lower returns here in the near term. How long would you say it would take to roll these out, et cetera?

Well, they're coming out. I mean, '21,'22, games typically take -- we know the sort of year count and some of them are smaller games, they're relatively quicker. But I think we'll see them. I think the challenge right now is just, again, the competition for gamer time. We see a lot of positive reaction to these games. We do see gamers enjoying it, but finding that audience has been the challenge with, again, just at a macro level, the competition for player time and money. So I think we'll see some. But actually, with that, we'll also see this ever more obvious sort of focusing then around our core IP we didn't name them in like the 9 again, but absolutely the 9 again, there's excitement about this pipeline, this major projects that we're basing around our core IP. This really will drive that improved release slate that will be the key to improve our profit and cash generation. So there's absolute focus on that. And again, it talks to the earlier question about studio collaboration on how we deliver those games. We certainly feel more of a force today.

All right. And just one last question for me here. I think you have teamed up with Call of Duty historically. Just wondering around this collaboration, how important in terms of sales and EBIT, it is for you. Given that we had a very strong release of Battlefield 6 here in October and if this could be some headwinds for you in a way? Or how should we think around that?

So this is on the partner side.

Yes.

We're not -- we feel great with our partnership with Call of Duty. It's a very broad business now, of PLAION Partners. You've seen top line growth that the team has delivered, that really is a business that is in its stride. So there's nothing particularly we want to call about. We feel very happy with the partnership and they're very, very valued and we feel in line with where the game is in the market, irrespective of the key challenges for gamer time again with Battlefield 6.

The next one and the last at the moment is from Rasmus Engberg from Kepler Cheuvreux.

I was wondering if you could give us a hint on what you anticipate in terms of release values for this year or for the second half of the year. That's the first question. And the second question is with regards to the 2 games we've talked a bit about REANIMAL and Gothic -- Gothic 1 Remake. How do you see them in terms of PC versus console? What's your take on how these games would do on the different platforms.

Maybe I'll take the first one, and then we'll see where we get to in terms of the values. I think, I imagine -- I mean, we sort of see both platforms, by the way, as kind of just natural choices for gamers. I mean I think we launched simultaneously, as we know, I mean, the technical prowess with the platforms is ever merging, especially when you see the news last night from Steam on their upcoming titles and stuff. So I think PC console is increasingly a choice for gamers, and we serve both. So I don't want to get too drawn into the important there of the splits. My gut feel is that the REANIMAL will probably trend more towards console. And Gothic, given its lineage will probably trend compared to REANIMAL more towards PC. But I think we recognize today, gamers have a lot of choice, in fact, we see data where gamers are playing across different platforms. So I think we'll see that come forward in due course.

And maybe I could add on the remaining part of the question. We have a book value for completed games for above SEK 3 billion and Q4 being the largest. So just as a matter of reference, H2 will be weighing literally like twice as H1, I would say, and a majority of it is weighing in Q4.

There are no more questions at this time, so I hand the word back to you, Phil and Muge.

Well, thanks for the questions. Thank you again, everyone, for attending and your questions this morning. That's all from us today. And with that, we'll now close the conference.