Embracer Group’s Post

Yesterday Inderes reported Q3 2023 results. The quarter showed growth of 23% with an EBITA margin of 18,5%. Both just shy of market expectations. 2023 guidance was maintained. Growth is primarily driven by the acquired Swedish businesses and growth in research products, while there is still pressure on project revenue outside the IR area. Thie means that recuring revenue in the quarter constituted 69% up from 65% last year. The number of customers has increased to 426 (403 at the end of the previous quarter) among others driven by IR software solutions. Inderes continues to indicate challenging market conditions with low activity on the IPO front. This means that cost is managed prudent and international growth strategy is balanced with the current market conditions.  Together with CEO Mikael Rautanen we today dived into the drivers of first nine-month results and took a closer look at the market outlook going forward. Disclaimer: HC Andersen Capital receives payment from Inderes for a Digital IR/Corporate Visibility subscription agreement. Inderes and HC Andersen Capital are strategic partners, and Inderes holds 20% ownership in HC Andersen Capital. A number of HC Andersen Capital employees own shares in Inderes. /Michael Friis 15.36 AM , 1 November 2023.

The Embracer Group's Q2 report for July-September 2023 reveals significant insights into the their performance and future strategies. Here's an in-depth analysis based on the CEO's comments and report contents: Financial Performance: Embracer Group's net revenue increased by 13% to SEK 10.8 billion, though they saw a decrease in organic growth. The EBIT was negative, indicating investment in development and restructuring. Segment Performance: Diverse growth across segments was observed. Tabletop Games and Entertainment & Services segments showed strong organic growth, while PC/Console Games faced challenges. Restructuring Initiatives: A major focus has been on restructuring to improve efficiency and cash generation. This includes reducing capital expenditures and operational costs, and consolidating operations for better ROI. Future Outlook: Embracer Group maintains a strong forecast for Adjusted EBIT of SEK 7-9 billion for the fiscal year 2023/24. They anticipate solid profit growth in PC/Console Games, driven by strong catalog sales and an exciting pipeline of new releases. CEO's Vision: Lars Wingefors, the CEO, emphasizes the company's focus on creating a more efficient, focused, and financially self-sustaining Embracer. He acknowledges the challenges faced and expresses confidence in the company emerging stronger. Key Releases and Projects: Embracer Group has several exciting projects and releases lined up, including "Homeworld 3", "South Park: Snow Day!", and "Arizona Sunshine 2". Their strategy includes consolidating operations and focusing on projects with high potential. Impact of Restructuring: The restructuring program aims to streamline operations and reduce overheads. This includes a reduction in workforce and a focus on projects with higher expected returns. #Embracer

Wheels Up Q3 2023 In Review After a brief time away, I’m reviewing recent financial and trade announcements. Wheels Up (WUP) have a new CEO. I’m being polite by suggesting that he seems more focused on the future than WUP’s expensive past. Mr. Mattson has available a $500 million investment on top of the $1 billion plus WUP has lost on their way to becoming one of many charter brokers. Worse, they are hampered by a badly-damaged brand. Most of us could have achieved a better result at a fraction of the price. For Q3 2023 WUP reported an adjusted EBITDA loss of $18.529 million, a marked reduction from $45.229 million, YOY. Active members fell 10% to 11,988, YOY, which might be good news. WUP are losing $1,117 every time they fly. Worse, they are carrying $692.4 million in deferred revenue, pointing to continued heavy losses. I’m with the late Charlie Munger in seeing EBITDA as BS! WUP’s improved EBITDA ignores interest expenses of $27 million, YTD, of which $11 million was incurred during Q3. WUP may be forced to use some of their fresh capital to buy-down debt OR dump more of their 67 remaining King Air 350i’s, with seven already sold. I’ll ignore heavy restructuring charges, a lavish Atlanta HQ and sizable goodwill write-offs, all of which highlight a costly clean-up that’s long overdue. In reporting goodwill write-offs, WUP have confirmed that they aren’t very good at acquisitions. My concerns with WUP remain the same! Is their latest business model viable? Are WUP shedding loss-making members fast enough to escape their financial impact? How much of their $500 million will be used to cover clean-up and losses on deferred revenues? Mr. Mattson speaks of new partnerships and lofty ambitions. However, when I talk to WUP users, they aren’t convinced by the Delta-led cash infusion. Despite WUP’s charm initiative, the reality is that charter and Part 135 operations are low-margin businesses. WUP tried to convince the market that they were different…and failed!. I see nothing to suggest that WUP’s latest approach will support current levels of debt, ongoing losses from legacy members and the expectations of their latest crop of investors. Questions for Mr. Mattson. When will unprofitable members be eliminated? Does WUP have sufficient cash to survive, in the meantime? Are new WUP customers profitable and what percentage of flight activity do they represent? Can contributions from new clients offset continuing losses and heavy overhead, including a new HQ that’s managing a shrinking fleet and flight-following workload? Are WUP planning to exit aircraft operations, altogether? Finally, will WUP’s heavily-mortgaged fleet be sold to reduce debt and rising interest expenses? If WUP is becoming just another charter broker, how will they differentiate themselves from hundreds of existing, solvent and reputable competitors? Here’s to Q4 and some answers…hopefully!

🔍 Delving Deeper: The Complexities of Leadership at Luminar Technologies 🤔💼 In the world of tech, leadership is not just about innovation and vision—it's also about integrity and accountability. Recent revelations about the family history of Austin Russell, CEO of Luminar Technologies, raise important questions about the company's values and leadership. While it's not my place to delve into personal family matters, the underlying ties to a dark chapter in history have understandably sparked concern among stakeholders. As leaders in the tech industry, it's essential to address these concerns openly and transparently, demonstrating a commitment to ethical leadership and corporate responsibility. Despite calls for clarity and denouncement of these ties, Austin Russell's reluctance to address the issue directly leaves much to be desired. As a CEO, it's crucial to lead by example and uphold the highest standards of integrity, especially when confronted with sensitive matters such as this. Moving forward, it's imperative that Austin Russell and Luminar Technologies take proactive steps to address these concerns and reassure stakeholders of their commitment to ethical leadership. By fostering a culture of transparency and accountability, we can work towards building a more inclusive and responsible tech industry for all. #AustinRussell #LuminarTechnologies #CorporateResponsibility #EthicalLeadership #TechIndustry

Building on our series about elevating profitability, our third strategy shines a spotlight on enhancing gross margins. It's not just about increasing sales; it's about making each sale more profitable. How? By refining your pricing strategy to reflect the true value you offer and diligently managing costs to widen the gap between cost and price. This approach not only improves your margins but also strengthens the financial health of your business, making each transaction more beneficial. Rein In Capital can help you dive deeper and discover how optimizing your gross margins can lead to a more prosperous and resilient business model. #GrossMargin #ProfitabilityEnhancement #ReinInCapital"

How can you maximise your business value? Monthly recurring revenue. (MRR) MRR continues to grow as a key strategy to build and grow a business. In this recent blog, we shine a light on how you can leverage MRR to maximise your business's value. Read the full article here: https://lnkd.in/eSd2SGSv #Candio #MRR #BusinessValue #MonthlyRecurringRevenue

🔊 The Brink's Company released its Full-Year 2023 results today: 👉 Reported revenue up 7%... +9% total organic growth including 21% from AMS / DRS now over $1B of total revenue ⬆ 👉 Operating profit +12% to $615M… Adjusted EBITDA +10% to $867M… EPS +23% to $7.35 ⬆ 👉 Free cash flow of $393M… 45% conversion, 93% year-over-year growth 🏆 GuruFocus, LLC says: "The Brink's Company 's performance in 2023 reflects a company that is successfully navigating a complex economic landscape." See below for more! #brinks #results #performance #success #cashflow #growthmindset #transformation

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Prepare your business for the future with exponential valuation growth! 📈 By focusing on both EBITDA and the multiple, you can achieve incredible growth. Dive into our article to discover actionable strategies. [Read now: [https://lnkd.in/e72sjNNc]] #ExponentialGrowth #ValueCreation #BusinessGrowth #EBITDA #Multiple #BusinessStrategy #ValueCreationEngines

Are you selling a business? Do you want to make the most informed decisions when calculating a selling price? Then make sure you understand adjusted EBITDA vs discretionary earnings. This video breaks down the similarities and differences in these two methods of pricing a business for sale. https://lnkd.in/eg5YHex7