“Lord of the Rings” proprietor Embracer revealed its Q3 outcomes had been boosted by licensing income from the Tolkien IP regardless of being decrease than anticipated general.

Embracer, a Swedish gaming conglomerate who snapped up the rights to “Lord of the Rings” two years in the past, has undergone a extreme restructuring program over the previous 12 months, which has seen the corporate shut down or eliminate dozens of video games studios and titles and lay off a whole bunch of employees, leading to aftershocks which have reverberated all through the video games business.

Its newest report, printed Thursday, the corporate revealed it had reduce 8% of its world workforce. That quantity doubtless doesn’t embody these engaged on a contract foundation.

Regardless of this, Wingefors admitted the corporate is unlikely to achieve its goal of reducing its internet debt to SEK 8 billion ($761 million) by March 31. He warned that Embracer nonetheless has “a number of bigger structured divestment processes ongoing that might strengthen our steadiness sheet.”

Embracer, led by CEO Lars Wingfors, homes its steady of Tolkien IP, which additionally contains “The Hobbit,” in Center-earth Enterprises, below its Leisure and Companies division. The most recent report famous this division had delivered a year-on-year internet gross sales progress of 12%.

In keeping with Wingfors, this was largely as a result of “stronger than anticipated” revenues from “Lords of the Rings” licensing, together with the Magic the Gathering buying and selling card recreation, persevering with efficiency of two Warner Bros.’ Peter Jackson trilogies and a brand new PC/Console recreation, “Return to Moria.”

Wingefors additionally mentioned the corporate is eyeing the upcoming theatrical launch of animated prequel “The Lord of the Rings: The Warfare of the Rohirrim,” which is ready for Dec.

In keeping with Reuters, Embracer’s general adjusted working revenue for Q3 of SEK 2.15 billion ($204.40 million) fell marginally beneath forecasts regardless of representing a 7% rise year-on-year. General internet gross sales at Embracer elevated by 4% year-on-year to SEK 12 billion ($1.1 billion)

Previous to initiating its restructuring program, Embracer had been on a multi-year spending spree, shopping for up dozens of video games studios and leisure properties together with comics writer Darkish Home, distributor Anime Ltd, the “Tomb Raider” franchise and naturally, Center-earth Enterprises, which gave them “Lord of the Rings.”

The Q3 outcomes confirmed that regardless of closing the deal for Center-earth Enterprises with former proprietor The Saul Zaentz Firm in Aug. 2022, Embracer was nonetheless making funds on it final winter. The most recent report said that SEK 1.9 billion ($185 million) left Embracer’s coffers in Q3 in respect of deferred consideration for each Center-earth and Tripwire Interactive, which it acquired from Saber Interactive together with different subsidiaries in the identical interval.

Embracer paid $395 million for Center-earth in 2022, a a lot decrease sum than some had predicted for the beloved franchise.