Shares in Swedish gaming group Embracer plunged nearly 40 per cent on Wednesday after the group slashed its forecast for the year and said a $2bn partnership deal had fallen through.
Embracer said it was informed on Tuesday that a strategic partnership it had been negotiating for seven months “will not materialise”. As a result, it said it now expected to generate SKr7bn ($658mn) to SKr9bn in adjusted earnings before interest and tax in the current financial year, down from SKr10.3bn to SKr13.6bn.
“It has been a challenging year, adversely impacted by game delays, weaker consumer demand and lacklustre reception for certain notable releases,” Embracer’s chief executive Lars Wingefors said in a statement on Wednesday.
The group’s share price has fallen 50 per cent since early last week when it provided an interim report stating that its adjusted earnings before interest and taxes for the year would be significantly below forecasts.