2018-05-16

THQ Nordic AB (publ) publishes Q1 2018: KOCH MEDIA DRIVE SALES IN Q1, EBIT INCREASED 236% TO SEK 107 MILLION

Our business continues to grow; net sales increased by 673% to SEK 633 million in the quarter, mainly thanks to Koch Media, which was acquired and consolidated on February 14. Excluding Koch Media, net sales were up 64% to SEK 135 million. EBITDA was up 439% to SEK 226 million and EBIT increased by 236% to SEK 107 million compared to the same period last year. Excluding Koch Media, EBIT was up 54% to SEK 49 million.

Koch Media is by far our largest acquisition to date and confirms our focus on creating value for our shareholders. With this transaction, we took a great step forward to further build a diversified, substantial and relevant player within the growing games industry. We got off to a great start together with the Deep Silver release of Kingdom Come Deliverance. I’m also happy to inform that Deep Silver will be publishing the upcoming RPG’s Wasteland 3 and Bards Tale IV. Both games are developed by InXile, a California-based studio founded by the industry legend Brian Fargo. Along with them, we are all looking forward to Deep Silver’s next key release, Metro Exodus, now expected in Q1 2019.

The THQ Nordic GmbH operations also had a good quarter with five new releases including MX vs ATV: All Out, our in-house developed sequel, released at the end of the quarter. Revenues for the THQ Nordic GmbH operations were 135 million, an increase by 68% compared to the same quarter last year. Their next key releases, Biomutant and Darksiders 3, are still under evaluation for setting a release date.

I expect the future of our well invested pipeline of products – currently at a record 54 ongoing projects – to generate growing revenues and improved profitability. In order to make the best possible return on our investments and to continue building IP value I would like to restate the importance that we are patient to deliver the expected customer experience along with finding the right release window for up-coming releases.

Meanwhile, we continue to evaluate further investments into game development projetcs for key IPs along with further potential acqusitions or strategic partnerships that could add considerable value for the group and its shareholders. Stay tuned.

– LARS WINGEFORS, FOUNDER & CEO

FIRST QUARTER 2018

 > Net sales increased by 673% to SEK 632.9 m (81.9).
 > EBITDA increased by 439% SEK 225.9 m (41.9), corresponding to an EBITDA margin of 35,9%.
 > Cash flow from operating activities amounted to SEK 699.8 m (29.7).
 > Earnings per share (diluted) were SEK 1.02 (0.33).
 > As of 31 March 2018, cash and cash equivalents were SEK 98.7 m. Available liquidity including credit facility was SEK 1,117 m.
 > Acquisition of Koch Media was completed during the first quarter and is consolidated from 14 February 2018.

All figures in brackets are for the corresponding period of the previous year, unless otherwise stated.

For additional information, please contact:
Lars Wingefors, Founder & CEO, Phone: +46 708 471 978, E-mail: lwingefors@thqnordic.com 

About THQ Nordic
THQ Nordic acquires, develops and publishes PC and console games for the global games market. The company is a major player within game and partner publishing with an extensive catalogue of over 100 owned franchises, such as Saints Row, Dead Island, Homefront, Darksiders, Metro (exclusive license), Titan Quest, MX vs ATV, Red Faction, Delta Force, Destroy All Humans, ELEX, Biomutant, Jagged Alliance, SpellForce, The Guild amongst others. THQ Nordic has a global publishing reach within marketing, sales and distribution, both online and offline. The company has a global presence, with its group head office located in Karlstad, Sweden and with operational offices in Vienna, Austria and Munich, Germany. The group has ten internal game development studios based in Germany, UK, USA and Sweden and contracts with 26 external game studios in a number of different countries. THQ Nordic engages more than 1,700 people.

THQ Nordic’s shares are publicly listed on Nasdaq First North Stockholm under the ticker THQNB:SS with FNCA Sweden AB as its Certified Adviser. For more information, please visit: http://www.thqnordic-investors.com

 

THQ Nordic interim report Q1 2018