Feb 15 Reuters Swedish games developer Embracer on Thursday reported slightly weaker than expected operating profit for the October to December period, adding it may miss its debt reduction target, but it maintained its fullyear forecast.

The owner of the Tomb Raider franchise said its adjusted operating profit rose 7 to 2.15 billion Swedish crowns 204.40 million in the quarter, slightly below analysts39; forecasts of 2.21 billion crowns seen in a companyprovided consensus.

The company said it will reach the low end of its 7.0 billion to 9.0 billion crown forecast for adjusted operating profit, driven by a softer 20232024 PCConsole outlook, recent game performance, and some fourthquarter pipeline shifts.

Embracer, amid a restructuring, may fall short of its March net debt target of 8 billion crowns, yet remained committed to a 12month leverage goal and shareholder value maximisation.

Jefferies said in a note that thirdquarter results are considered soft despite the ongoing restructuring efforts, but notes that mobile games segments saw results above expectations.

We are very pleased with the mobile numbers. Profitability came in record high at 47, over 600 million crowns in profits, which is a 2 growth year over year, CEO Lars Wingefors told Reuters.

This success, he added, is partly attributed to a strategic shift from hypercasual games towards more recurring games.

The game developer, like other gaming groups, benefited from growing demand for video games…