Müge and I are talking to you again this morning from our Stockholm office. We have, as ever, a short presentation to cover the main beats for our operating segments, and we'll take a look at our financial performance and then close with a look ahead before turning over to Q&A.

With that, let's get going. Let's just take a moment to set the scene on the performance today, but really the performance of Kingdom Come: Deliverance II, which 5 million copies sold, well that was announced today, but actually achieved within the first year from launch.

Now, we've talked a lot about core IP at our recent conferences, and I think this is a great example of a core IP, an owned IP created by our studio Warhorse, based in Prague, and a studio sitting at the centre of our future strategy as we build out games delighting millions of players around the world. Keeping on the game theme, last night, European time, the press embargo lifted for REANIMAL.

We're now 1 day from launch. We have a strong set of reviews from critics, but the most important steps of course are ahead, and this is getting the game into the hands of gamers.

It really does bode well for horror-adventure fans for Friday the 13th. Now we'll come to look at our highlights for Q3.

Overall, our group Q3 results reflect delivery above plan on both revenue and adjusted EBIT. Total net sales were 5.2 billion SEK, an 8% organic drop year-over-year, which you'll see today comes across from all of our segments, but mainly in Entertainment & Services, which had some tough comps against Q3 fiscal '24/'25.

Important to note that all the numbers shown here are now fully excluding Coffee Stain, which as a spin-off, is treated as a discontinued operation. From a business perspective, our Q3 results were driven by our core IPs within PC/Console and seasonal strength within Entertainment & Services and Mobile.

Kingdom Come: Deliverance was the main driver, and it's great to see again the team's strong execution, aligning marketing and seasonal promotions delivering another solid quarter of gamer engagement. Our adjusted EBIT was 528 million SEK.

Now this is down from 696 million SEK excluding divested assets, primarily Easybrain in Q3 last year. At 550—sorry, at 528 million SEK, our adjusted EBIT was ahead of our plans and shows clear improvement compared to Q1 and Q2.

Our free cash flow generation over the trailing 12 months, or TTM, was slightly negative. Again, this is now shown without Coffee Stain and is an improvement against the negative 399 million SEK 1 year ago.

Excluding divested assets, the free cash flow improvement is even greater, and Müge will talk more on this shortly. We're taking positivity into Q4, and this allows us today to increase our underlying FY 25/26 adjusted EBIT forecast.

It's important to note we continue to see and work hard to achieve potential upside. Now, I've said this before, but this is a transformative time for our group.

Coffee Stain successfully completed its separate listing in December, and this allows us to now concentrate on our core strategies and growth opportunities. In a nutshell, we hold one of the most exciting IP portfolios in the industry with globally recognized franchises, including Lord of the Rings, Tomb Raider, Kingdom Come: Deliverance, Metro, Darksiders, Remnant, Dead Island.

We're building an IP-first organization, one where we will operate with greater sharing and alignment. To me, this quarter shows progress, but of course it shows also where focus is needed, and we're committed to strengthening profitability and unlocking long-term value.

Now we'll dive into the operating segments and first take a look at PC/Console. Our Q3 net sales for PC/Console were just about 2 billion, shy 2 billion SEK, a 3% organic decline, and we covered already that our core IPs and catalogue really did deliver strongly in our third quarter, ahead of expectations.

New releases were somewhat soft. SpongeBob SquarePants: Titans of the Tide was our biggest new release with solid reviews from critics and gamers alike, but it did come up short in digital sales against our plan.

Our team at THQ is working hard on this. They have a plan to deliver through our fourth quarter.

With news of 5 million copies sold, Kingdom Come: Deliverance II of course gets a mention. The third DLC, Mysteria Ecclesiae, was released in Q3, and this helped drive the game to ever greater heights.

Dead Island and Tomb Raider also had a strong quarter and contributed to catalogue performance. Now our adjusted EBIT margin trend shows the challenges we face and the opportunities we have.

Again, important to note all this data is now completely without Coffee Stain. We have a strong catalogue, and with a more focused pipeline and a more focused organization, we will drive better margins.

13% shows clear improvement over Q1 and Q2. 13% isn't our ambition.

Now let's have a look at ROI, and we share this slide again for consistency, and we share this data. Important to note now, this is also without Coffee Stain and of course other divested assets from the past.

As ever, this quarter's releases are shown on the far left of this graph, at 0 quarters since release. Now without Coffee Stain, the weighted average ROI for all titles has decreased from 1.9 to 1.8 across all titles, and you see that there in the top right-hand box.

Now bear with me a little bit on this, but I want to find a way to explain where we feel our potential can be. For this, let's think back to Kingdom Come: Deliverance II, which as I said earlier, launched 1 year ago, which on this chart would be 3 quarters since release.

It's been a successful game launch, you've seen that, and you can see the game at around the 3x level. This is what we believe is more indicative as an ROI for our core IP after the first year.

This again shows the importance of our 3 key priorities: investing in our core IP, operational discipline, and targeted cost initiatives. On to pipeline.

As of today, we've got 30 announced titles. REANIMAL is out tomorrow, and it's fantastic that it's Friday the 13th.

Milestone's high-speed arcade racing game Screamer is also now slated for March 26th. A call-out that Tomb Raider fans were excited on news of the 2-game reveal, together with our partners Amazon at December's Game Awards show.

It was great to see that Crystal Dynamics and Flying Wild Hog Studio collaboration announce 2: Legacy of Atlantis, shown here, is the first up, followed by Tomb Raider Catalyst, the next major chapter in the series. Now, we're excited by our near-term and our longer-term pipeline with a range of major projects based on our core IPs launching over the coming 3 years.

For our next fiscal year, we look forward to 1 long-awaited, currently unannounced, major in-house developed and in-house published title together with a range of important mid-sized titles. Execution discipline will be critical to converting this pipeline into significantly higher profitability and cash generation.

Now we'll look at Mobile. In Mobile, we delivered 566 million SEK in net sales, a 15% organic drop year-over-year, impacted by lower UAC, user acquisition cost, growth investments.

Overall growth numbers include foreign exchange and the divestment of Easybrain. When we look sequentially, it's another positive revenue and margin growth Q2 to Q3.

The team has balanced UAC well, and we're seeing Glow begin to scale. Sled Surfers launched in the quarter 2 and has scaled well so far, delivering revenues ahead of plan.

Overall, we're confident on the development ahead. Let's take a look at Entertainment & Services now.

Revenue in our Entertainment & Services segment achieved 2.6 billion SEK, a 10% organic decline year-over-year. Again, as I said earlier, this is really due to the high comps in Q3 last year for PLAION Partners.

What's clear to see is that seasonal revenue and margin uptick for the segment was delivered to plan. When we look at the mix in the segment, Middle-earth's strategic partnership with Asmodee helped drive margin improvement.

Our team is excited about the potential for this category partnership. As we look forward, we're also excited about Magic: The Gathering's introduction of The Hobbit into its trading card roster.

As a follow-up to the highly successful Tales of Middle-earth, The Hobbit launch is set for August. With that, I'll hand over to Müge.

Thanks, Phil. Good morning, everyone.

Before I start, as we go through the following slides, please keep in mind that following their spin-off, Coffee Stain Group has been reclassified to discontinued operations. All figures presented exclude Coffee Stain.

The year-on-year comparisons also continue to be impacted by divestments. As I take you through the results, I'll also provide some clarity on the underlying trends and performance on a like-for-like basis.

Looking at net sales, net sales for the quarter of 5.2 billion SEK were above management expectations, and compared to prior year, were impacted by both divestments and FX translation effects. The negative year-on-year divestment impact, primarily from Easybrain, was approximately 900 million SEK, while the FX impact was just over 400 million SEK.

If we exclude these impacts, our organic and pro forma growth stands at -8%. Now, if we break this down on a segment basis, Entertainment & Services was down 10%, primarily due to a strong comparator with several strong releases from PLAION Partners in Q3 last year.

For Mobile, organic and pro forma growth amounted to -15%, resulting from lower user acquisition cost in the current and recent quarters. PC/Console Games was down 3% in the quarter, mainly due to decreased work-for-hire revenue.

New releases had higher contribution compared to last year, while on catalogue, as Phil also mentioned, Kingdom Come: Deliverance II performed well ahead of our expectations. Gross profit percentage for the quarter was 55%, down 3 points year-on-year.

The impact of divestments was the primary driver, accounting for reduction of 6 points. Excluding the impact of divestments, the gross profit percentage improved by 3 points year-on-year.

This was the result of an improved margin in PC/Console as well as a slightly favorable segment mix with a lower contribution from Entertainment & Services in total net sales. Looking at marketing, total marketing spend was 419 million SEK, or 8% of net sales, down 7 points year-on-year, largely driven by the impact of divestments, which accounted for a 5-point reduction.

The non-user acquisition cost marketing of 165 million SEK decreased slightly by 42 million SEK year-on-year, while user acquisition cost investments dropped by 586 million SEK to 254 million SEK, driven by the Easybrain divestment. The user acquisition costs in the prior year included 471 million SEK related to Easybrain.

Excluding Easybrain, user acquisition cost decreased year-on-year by 115 million SEK and represented 45% of mobile net sales, down 5 points year-on-year, but largely stable sequentially compared to Q2. Operating expenses excluding marketing were 1.2 billion SEK, down 65 million SEK year-on-year and representing 24% of net sales.

Divestments impact the year-on-year opex evolution by 168 million SEK, and on a like-for-like basis, opex increased by around 100 million SEK compared to last year. While this was largely related to timing effects, and we expect a sequential decrease in Q4.

Overall, timing impacts aside, the cost base remains relatively stable and continues to be a key focus area for tight control. This all delivers an adjusted EBIT for the quarter of 528 million SEK, a clear improvement over Q1 and Q2 and ahead of management expectations.

Last year's Q3 included around 300 million SEK from divested entities. Aside from the divestments effect, adjusted EBIT was impacted by the lower net sales across the segments.

FX also had a negative effect of around 60 million SEK in the quarter. Combined with the timing effect I mentioned previously in opex, this led to a -4 points impact in adjusted EBIT margin, or -2 points when we exclude the impact of divestments.

Turning now to cash. Free cash flow after working capital amounted to -75 million SEK for the quarter.

This compares to 719 million SEK in Q3 last year. The year-on-year evolution is driven primarily by changes in working capital.

The working capital of -437 for the quarter is mainly driven by increased receivables arising from seasonal sales close to the calendar year-end. Compared to the prior year, the difference in trend is mainly timing related, and we expect this to unwind in Q4.

As you can see in the TTM, which eliminates the timing impacts, the working capital movements on a 12-month basis are largely comparable. If we look at the TTM free cash flow after working capital, we see a significant improvement.

This improvement is even greater when we take into account that the comparator included around 700 million SEK net positive contribution from divested entities. In the TTM, we can see the benefit of our efforts to reduce and refocus our investments with a significant reduction in capex spend year-on-year.

It's also worth noting that the current year TTM was negatively impacted by around 270 million SEK of FX differences. Looking below free cash flow, the cash outflow from financing activities of -766 million SEK includes -428 million SEK in Q3 related to the repurchase of own shares under the 500 million SEK share buyback program.

The net cash flow from acquired or divested companies of 297 million SEK relates to the payment of earnouts from past acquisitions, partly offset by the net proceeds of divestments of non-core assets. In TTM, the significant inflow of 12 billion SEK relates to the net proceeds from the divestments, with Easybrain representing the largest portion.

At the end of December, this results in a net cash position of 2.9 billion SEK and available funds of 5.8 billion SEK. I want to take a few minutes to look in a bit more detail at the evolution of our net cash position over the quarter.

Net cash at the beginning of the quarter of 4.2 billion SEK comprised 6.1 billion SEK of cash and 1.9 billion SEK of liabilities to credit institutions. As I covered on the previous slide, we had a limited outflow in free cash flow after working capital of 75 million SEK.

The largest part of the net cash evolution was driven by a number of key strategic and corporate actions. These include the cash returned to shareholders via our share buyback program amounting to 428 million SEK in the quarter, the net cash impact of the Coffee Stain spin-off of -495 million SEK, the net cash proceeds of 219 million SEK from divestments of non-core assets, and the payment of earnouts in the period amounting to 516 million SEK.

It is worth noting that we have now relatively limited earnout obligations of 730 million SEK spread over the coming 6 financial years, just under half of which are due in fiscal year '26/'27. Net cash at the end of the quarter of 2.9 billion SEK comprised 4.9 billion SEK of cash and 2 billion SEK of liabilities to credit institutions.

After the completion of the key strategic and corporate actions I've just mentioned, we thus maintain a strong financial position. Looking ahead, we expect to deliver at least 750 million SEK in adjusted EBIT for the full financial year.

I want to reiterate once again that this fully excludes Coffee Stain Group following their spin-off and reclassification to discontinued operations in our results. As a reminder, our previous expectation of at least 1 billion SEK announced in Q2 included a full year's contribution from Coffee Stain Group.

As we have stated here, we do see some upside potential from underlying business performance. I will hand back now to Phil for some closing remarks.

Thanks, Müge. It's again a great screenshot here from Tomb Raider.

This really brings us on to our last slide today for some closing remarks. Now, as we've talked about, core IPs continue to outperform this past quarter.

This goes for both games based on core IPs released 1 year ago, but also 3 and 8 years ago. This is an important signal for our future direction.

That said, we're not satisfied or happy with the profitability within PC/Console, and there are a few important levers that we expect to have an impact on partly different timeframes. First, as mentioned, how we execute with discipline on our pipeline will be key to drive higher profitability and cash generation.

Second, we're committed to strengthening profitability and unlocking long-term value, and how we do that is captured in our 3 key priorities which we've talked about since August. IP-first, IP-led, we are rapidly shifting our investments towards higher-return core IP.

This group of IPs have had an ROI of 3x historically versus 1.8 across all titles. In this past year, the share of capex allocated to core IP has increased from 20% to 40%.

Longer term, we see it moving towards 80%. This will not drive profitability in the next quarter, but it will drive lower capex, and we're confident that it will drive stronger profitability in the coming years.

Additionally, we are continuously targeting a reduction not just capex, but also opex as we complete consolidation initiatives and as we continue simplifying and adapting our organization's size and shape around a more focused portfolio. This will be key to making better decisions quicker and to improving profitability.

We have more work to do here, but we see it as a strong profitability driver. During the quarter, we divested several non-strategic and unprofitable businesses in third-party publishing and work-for-hire.

This improves our focus and it improves our capital efficiency. These assets jointly had a negative adjusted EBIT of around -180 million SEK on a TTM basis.

The impact of this is quite immediate, and so these achievements in Q3 are important. As part of this closing, of course we touch on AI.

AI, well it's certainly accelerating both its technological advancement, but also as a topic of conversations in our sector. As discussed at our AGM in September, we see significant potential in AI-driven tools.

It can meaningfully enhance development, production, and operations for us. As an industry that has always embraced innovation, we actively explore and adopt AI where it strengthens our products and improves efficiency.

Now, we view AI as a tool to support and empower our teams. World-building, storytelling, and creative direction will remain firmly human-led, ensuring that creativity and originality continue to define our experiences.

Our long-term direction is now taking shape, and we're building towards a disciplined, IP-first group. We remain committed to continuing the distribution of any excess cash to our shareholders, and we will provide further updates on our strategy and structure as we make progress and as soon as we have more news to share.

That really brings us to the end of our slides and notes this morning. Before we hand over to Q&A, I'd just like to express my thanks to all our teams across the group for their hard work, dedication, and passion.

With that, I'll leave it to the moderator and the Q&A session. Thank you.

Yes. Hello Phil, hi Müge.

I've got two questions, please. The first one on the FY 27 pipeline.

You mentioned the long-awaited internally developed title. When do you expect to make the official reveal?

Can you update as well on the Marvel game? Should we expect it for FY 27 or not?

Secondly, on asset disposal. You divested non-strategic asset in Q3 for 180 million SEK adjusted EBIT loss.

How much further scope is there for pruning loss-making assets? What's the aggregate negative EBIT still embedded in the remaining portfolio that you could address in the coming quarters?

Thanks, Nicolas. Good morning.

Thanks for your question. I'll take the first one certainly, and then we'll see how we combine with Müge on the divestment and scope.

The reveal is fast approaching. We'll blink and we'll practically get there.

It's not something today on a corporate thing that we're going to date. We're excited about it, the team is excited about it, and I promise we haven't got too long now to wait.

For Marvel, we really leave that for our partners at Skydance to comment on, and I think that's the best way that we approach it right now. As to divestments, there is further scope.

I don't know if we've got a range right now that we're prepared to or would be sensible actually to offer up. I think it remains one of our core initiatives today as we really continue to sort of focus and sharpen our execution.

Good morning, Nicolas. Maybe one thing to add to that is that, as we've mentioned, the impact of the divestment of non-core assets represent 178 million SEK on a trailing 12 months basis, it gives you an idea of the annual impact.

As Phil mentioned, it is part of the normal course of business that we assess, depending on the criteria, which is a part of the business steering process.

Great. I will go back in the queue.

Thank you.

Hi, Phil and Müge, and thanks for taking my questions. I have one follow-up on the own published AAA pipeline that we just talked about.

A couple of quarters ago, you discussed nine AAAs in the medium-term slate for '26/'27 and '27/'28. You haven't reiterated this message since I believe Q1.

Can you add any more flavor on how we should look at the mid-term slate here, given that you're talking about one own published major title for '26/'27?

Pipeline's obviously building. It's a living thing.

We're very excited about it. We've got a range of major projects based on core IPs that are scheduled to launch over the next 3 years.

I think there's other color. We talk about sort of release cadence historically also, and when we think about release cadence in the past versus the future, we definitely see that sort of quickening up.

I think the past 5 years, we've had just over one AAA game per year, and we certainly see that as we plan forward now for multiple years, we see that increasing. I think all the games are there.

Our focus now is really on fiscal '27. We're not talking yet about forecast for next year.

We're still deep in planning for fiscal '27. As I say, today we're excited to feel and know that we've got one major in-house developed, in-house published, and as today unannounced title that we're excited to get in front of the world pretty soon.

Yeah. Very clear.

Just a second question. The catalogue in this quarter was quite strong and probably a better I would assume than what you expected in Q2 when you said limited profitability within the PC/Console segment.

Just a question. The main outperformer here versus your expectations, is that Kingdom Come: Deliverance, would you say?

Also, are you able to add any flavor on how big eventual platform deals were here in Q3? Was Killing Floor 3 the biggest one?

I'll certainly take the first one, and and then Müge can pick up the the the platform deals. Catalogue, I really see as a as a fantastic asset for us.

We used to talk about back catalogue and and, it makes it sound old and and and whatnot, frontline, backline, etc., etc. These are games we've seen that through the DLCs that we've offered and continuous sort of, community management and engagement, we see more and more players coming in.

KCD certainly was the standout, you're absolutely right. If you think about that game in Q1, we reported some softness really, lower than expectations against the sales, and then we saw competitive pressures for that.

We saw that coming back into Q2, and we're really pleased that it continued to drive Q3 through Q3. I think operationally, there's a much tighter group now, commercially and and marketing and studio-wise that is really on that execution.

We're delighted that with a game like Kingdom Come, high scoring, the review user comments are fantastic, that there's more and more players out there. It's our it's our role to find the players.

5 million is not is is not the the the bar now, right? It's how we find more players, the the player base is ever growing.

I think we're really I like to think we're finding a good approach now to how we, we work at at an IP level versus thinking it's, catalogue and and and it's always going to decline. It was definitely the the biggest one with with other examples as well that just came through.

We we mentioned Dead Island and Tomb Raider had an uptick with the the the announcement. That always drives more activity into into, beloved games.

Right. Hi, Jakob.

Maybe on the platform deals, well, we always expect something on a quarterly basis, and in Q4 as well, but nothing really major is expected. Looking into Q3, the amount which has been pulled from Q4 represents a very minor portion.

The real underlying performance is really coming from the PC/Console part. The KCD, Dead Island, as Phil also mentioned.

This platform deal doesn't represent an important portion, I would say.

Okay. Thank you so much for your answers.

Thanks, Jakob.

Good morning, guys. With only two questions, I have to be smart about which I pick here.

Starting off with one let's say near-term question. You guided for at least 750 million of adjusted EBIT for the full year, which implies I guess some 200 million in Q4.

Can you share some more color on how we should think about that build-up? Is the majority of it related to REANIMAL?

Is it related to some platform deals? Or how should we think about that?

Good morning, Amar, thanks for the question. I'd like to first reiterate that we feel comfortable with our latest view where we see some further upside.

I think we need to bear that in mind when thinking around Q4. We're of course very excited by REANIMAL, but as Q3 has also shown us, the underlying business, the catalogue is also delivering good results.

When we work on our forecast, we do factor different ops and risks, which as a net assessment makes us believe that there's upside to that minimum 750 million SEK full-year outlook.

That's crystal clear. The next question on a completely different topic.

You've mentioned here a couple of quarters that you look to distribute excess cash, but nothing concrete. How should we think about what is a minimal liquidity buffer for you or how much cash do you want to hold on balance?

Why no capital allocation plans announced yet?

Thanks, Amar. As previously indicated, we up until already January, we had been fully focused on the recently share buyback program and some other corporate and strategic initiatives, as I've also earlier presented the bridge on, including the portion of cash to Coffee Stain.

We've always said that we are in a sequentially assessing always the balance sheet needs in the right fit of business needs. If as a result of that, any excess cash is to be always considered to be returned to shareholders.

It is part of the thinking process. Now we got our Q4 to focus on, and we'll be working on next year in parallel, and you can take that as a general direction, I would say.

Perfect. Thank you very much, guys.

I'll jump back into the queue then.

Thanks, Amar.

Thank you, and good morning, everyone. I have a follow-up question on Jakob's question on the backlog.

You said that platform deals represented a minor part, if I understand correctly, of the back catalogue. I wonder if the contribution in total from platform deals, was it still bigger than last quarter?

Thank you for the question. In comparison to Q2, I think in absolute terms, I would expect something very similar.

We haven't been exposed to something bigger in this quarter particularly.

All right, thank you. Then my second question is on the capex, and you're saying that you're moving towards a higher allocation towards the core IPs.

You talked about 80%, but if we look at what you're spending right now, what is the current split of core versus non-core, would you say?

I think we indicated it will be sort of 40% of our capex this year is really allocated against core IP. 80% certainly is a sort of, I don't want to use word longer term, but it takes time to get production lines, production teams up and running.

Obviously, we have to find the right opportunities, etc. That's probably more of a longer-term thing.

But 40% today is where we're allocating.

So 40% is still for the sort of upcoming year, you would say?

It's more now. I think even this quarter, we're at that level.

It might have been 37%, 38% this quarter and moves to 40% next quarter, I believe. As we step forward, that's probably a 20% shift over the last 18 months or so.

Obviously we're quickening pace now, we probably get to another 20% within the next year, I'd say, as a rough guide. Again, we try to talk this point about some things take time to come through in numbers and that's one of them, right?

It's a longer-term thing. We've taken those deliberate steps already starting last August, really think about that allocation to which IPs and which teams.

We'll see that coming through quite strongly I think over that timeframe.

All right. Thanks for that.

Thank you and good morning. I'll start with a follow-up on the back catalogue.

Obviously you've been clear on your ambitions with core IP, but I've gotten the impression that you've been more sort of active and opportunistic in terms of campaigns and discounts, etc., on some of these titles you mentioned. Is that a fair observation or is it kind of too early to see it in the numbers, if you understand my question?

I think we've got to recognize there's a commercial side of gaming today as well. I think we've got to be smart traders with that as well.

We got ever-greater number of platforms to offer. Never been more gamers coming to these platforms, but they've never had greater choice.

How we combine marketing, influencer, cultural events, price as well, of course these are the levers that our commercial teams are actively looking to optimize and do well in. Discovery of games today is a real challenge.

We've got to work that many, many ways. I like the way that it felt last quarter.

I think that we're seeing that quickening up, proactive decision-making, and that comes through in the numbers. We're a trading company in that respect and we have to work in that way.

Great. Then second question on Middle-earth with the deal with Asmodee.

Just first please clarify if there's any sort of one-off items affecting the numbers we should be aware of during this quarter, and then just of course outline how you see which primary benefits on your end with this agreement.

Hi, Erik. I'll just maybe start with the technical part of it.

There isn't anything weird or items affecting comparability on this regards. I'll let maybe Phil elaborate on the deal itself.

We announced it I think already on October 1st, it's towards the start of our quarter. Obviously, we know the team at Asmodee fantastically well, and it really falls greatly in line with our strategy around working with experts with people in the top of their games.

With an IP like Lord of the Rings to strengthen now the partnership, formalize the partnership. We talked about they're going to manage the tabletop games and accessories category for us for the Lord of the Rings and the Hobbit.

It's a long-term relationship. We're really excited to push into.

We really see their ability for reach and engagement, delighting fans with the very best tabletop gaming experiences. Set in the world of Middle-earth is very exciting for us as overall sort of guardians.

We've got the advantage of being part of the same group and still feeling very closely aligned and especially strategically. That's how we see the partnership, a lot of excitement, and certainly partnerships that we'd like to extend and replicate in other categories as well.

Perfect. Thank you so much.

Yes, hi, good morning. Thanks for taking my question.

Super curious about that announcement you're going to make about your new big game that you flagged. Would it be possible to say that this is an existing IP, it's not a new IP, right?

I think it's fair to say that. I'm happy firstly to get your excitement.

I love it. The game we sort of play on events like this is fun.

If you just hold for a little bit longer, all will be revealed. I think that's a fair assessment, yes.

All right, thank you. Then on your structural deals and adjustments to the company, you have sold a couple of assets that are loss-making, I'm sure there are pretty more.

Would you consider selling assets that are profitable, but doesn't necessarily bring anything to the party as in terms of being a PC/Console company?

I think Phil reiterated the three focus areas as we look ahead in terms of operational discipline, the core IP focus, and the strategic alignment. These are the really key areas that we focus on.

We are very much committed and engaged to working with what works extremely well, trying to see how we can make things even better. Focus is definitely a priority for us, and that comes with the things that work already very well and how we can replicate and roll them out further.

I'd just add to that. We spend a lot of time on PC/Console because that's where the bulk of our capex, that's where the bulk of our operations have been.

We report widely about our segments. We're broader than that.

We have a broader entertainment offering. I know we focus a lot on PC/Console, and therefore you might conclude anything outside that is non-core, but we're a broader play.

Our focus is on PC/Console because that's where we see the best scope for margin improvement and alignment around the strategic priorities we've talked about, which is really getting in line with our core IPs and find those simplicities and simplification, let's say, in our business.

I think it's worth mentioning that, and you have seen, we're really really also looking at the shareholder value. You have seen that if it does make sense and if it is unstrategic or if it is unprofitable, it is really optimizing and maximizing shareholder value that we incorporate in the thinking process too.

That will be the guiding principle.

Thank you, fair enough.

Yes, hi again. I've got two follow-up questions, please.

On the full year '27 profitability inflection you mentioned in the press release. Can you give us a directional framework regarding the kind of inflection you are expecting?

Is it fair to assume a return to double-digit adjusted EBIT margin group level? That will be the first question.

Secondly, on the GenAI tool comment. How long do you think it will take for those tools to make an important contribution in your development process?

For example, do you expect any GenAI impact to be material in the nine AAA game you have in the pipeline? Thank you.

Hi again, Nicolas. I'll maybe start first and then Phil, I'll let you take over.

As you've seen already year-to-date Q3, we have divested unprofitable businesses that contribute to improvement of the profitability. We've already shared that we've got next year at least one major title together with a bunch of mid-sized titles planned for next year.

If you were to compare that to this year where Killing Floor's performance has been below expectations and the underlying business performance that we have in Q3 and what we foresee in Q4, I think just that comparison gives you enough room for a confident earnings inflection for next year.

I think GenAI, it's a really great question. I'd say right now where we're seeing and it is really common.

I'm fortunate if I can travel around and walk around lots of studios and talk to a lot of lead animators, designers, engineers, and it's fascinating to see how I won't say brightest minds, but lots of minds in our group are really inquiring and leaning into AI. If there's a trend there, I'd say that we're seeing it in more concept work and pre-prototyping.

I think we're generally getting ideas off paper, into 3D models, as we talk about this at the AGM, way quicker than a year ago. The advancement has been that fast.

Then, from 3D models into game, into 3D worlds, again, way faster. This is really as a concepting tool, as a prototyping tool, being really helpful to see what we think is going to work.

We've talked about things like AI voice, how we don't see that in final games, of course, but we see it as a design tool. With that perhaps as logic, the nine games, they're deep into production now, and probably therefore at their stages of concepting, pre-production, the GenAI tools were just less pervasive and strong.

I think we'll really see it coming through sort of over the next wave, and we're excited by it.

Super. Thank you, Phil.

Thank you, Müge.

Thank you. Thank you again, everyone, for attending our conference and for your questions.

As ever, that's all from us today. With that, we will close the conference.