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‘Lord Of The Rings’ Owner Sees Full-Year Ents Sales Grow To $677M

Embracer Group‘s masterplan to build on its Lord of the Rings IP is in its infancy, but the signs are good.

The company’s annual report for 2023/2024 showed the Entertainment & Services division that currently houses them posted net sales of SEK7.08B ($678M), up 34% on SEK5.27B posted in the previous year. This accounts for about 17% of company net sales.

Adjusted earnings before interest and tax stood at SEK853M for the April 2023 to March 2024 period, well up from the SEK281M posted a year prior with widened margins. However, EBIT showed a loss of SEK413M, up from the SEK 170M loss the year before, with costs incurred during wide scale restructuring over the past year impacting across the Embracer footprint.

Embracer said “the strong adjusted EBIT growth and higher margins YoY is primarily explained by stronger-than-expected licensing revenue for The Lord of the Rings IP,” which sits in Middle-earth Enterprises unit within the Freemode operating group.

The company noted several PC and console, mobile and trading card games had come through Middle-earth Enterprises during the financial year. Its has a busy TV and film schedule ahead, with a second season of Prime Video’s Lord of the Rings: The Rings of Power set to launch, anime film The Lord of the Rings: The War of the Rohirrim coming this December and The Lord of the Rings: The Hunt for Gollum coming as the first of two films from Warner Bros. Pictures, New Line Cinema, Peter Jackson, Fran Walsh and Philippa Boyens.

Last month, Embracer group CEO Lars Wingefors said the Lord of the Rings universe could “become a key driver in the coming decades,” while playing up the potential of new new Tomb Raider streaming and film titles. “Strong partners, such as Warner Bros. Discovery and Amazon MGM Studios, that complement our capabilities, are an important part of our IP strategy,” he had added.

In April, it was announced that Embracer would split its operations into three, with new unit Middle-earth Enterprises & Friends housing Lord of the Rings and Tomb Raider.

Embracer’s overall net sales grew by 12% YoY to SEK42.2B, with adjusted EBIT up 11% to SEK7.1B. “The solid earnings development was primarily driven by a notable growth for Middle-earth Enterprises within the Entertainment & Services segment, as well as a strong margin development for the Mobile Games segment,” said Wingefors today in the report.


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