The divested business is being distributed to Embracer's owners, and Coffee Stain Group will be listed on Nasdaq First North, according to a press release. Embracer acquired the Skövde-based company in 2018.
I believe the revenue was very small, around 50 million or so, back then. Since then, they have grown and grown and been very successful, says CEO Lars Wingefors during a presentation.
During the past financial year, Coffee Stain Group a revenue of nearly 1.1 billion kronor and made an adjusted operating profit of 544 million kronor.
Changing name
Co-founder Anton Westbergh will continue to head Coffee Stain, whose group consists of 250 game developers and publishers. Coffee Stain has several major releases behind it, primarily the Viking game "Valheim" and the humorous "Goat simulator". "Valheim" was pointed out as the primary reason for Embracer to present record results in 2021.
Simultaneously with the divestment, Embracer will change its name to Fellowship Entertainment, which will continue to have 6,000 employees at 40 studios. The more well-known ones include 4A Games and Eidos-Montréal and the publisher Plaion.
The group is releasing its quarterly report at the same time. The adjusted operating profit landed at 1,077 million kronor for the fourth quarter of the broken financial year, three percent higher than the same period last year. Revenues fell by 6 percent to 5.4 billion kronor. Primarily, it is the medieval drama "Kingdom come: Deliverance II" that has sold stronger than expected.
Hoping for Marvel
Great hope for the current financial year is placed on this summer's action horror title "Killing floor 3", as well as the upcoming Marvel game "1943: Rise of Hydra". The latter has been delayed and will be released at the end of the financial year, and is expected to "drive significant revenue with lower margins" due to several collaboration partners being involved.
