THQ Nordic AB (publ) publishes Q2 2018: EBIT INCREASED 73% TO SEK 52.5 MILLION
Our business continues to grow; net sales increased by 878% to SEK 837 m in the quarter. EBITDA was up 421% to SEK 206.9 m and EBIT increased by 73% to SEK 52.5 m compared to the same period last year. Both THQ Nordic and Koch Media contributed to the group’s EBIT in the quarter.
All in all, we had a stable quarter despite no major releases in any business area. We continue to work on both hard and soft synergies between our companies. The majority of our physical distribution of THQ Nordic in Europe has now moved to Koch Media. Digital back-catalogue sales continued to perform well. New digital revenue channels, such as subscription-based business models, made a notable gross margin contribution to the group.
There is an increasing excitement about our major upcoming releases, such as Darksiders 3, Metro Exodus and Biomutant. After the end of the quarter we announced the release date and pre-order offering for Darksiders 3. I expect our well invested pipeline of future products, of all sizes, to generate increased revenues and improved profitability over the coming years. We are now working hard to prepare all activities for the biggest event of the year, Gamescom, which opens next week in Cologne, Germany.
In order to fuel for further business growth and future acquisitions we completed a directed new share issue, raising proceeds of approximately SEK 1,448 m in June. I was pleased with the strong interest from investors and especially happy to see our long-term investors contributing again in the raising of capital, along with a handful of new, highly regarded institutional investors.
We continue to evaluate interesting investment opportunities in game development projects, potential acquisitions and strategic partnerships that could add considerable long-term value for the group and its shareholders. I have seen an increased interest to become part of our growing independent group of companies, especially after our recently completed transactions. Stay tuned!
– LARS WINGEFORS, FOUNDER & CEO
SECOND QUARTER 2018
- Net sales increased by 878% to SEK 837.4 m (85.6).
- EBITDA increased by 421% to SEK 206.9 m (39.7), corresponding to an EBITDA margin of 24.7%.
- EBIT increased by 73% to SEK 52.5 m (30.3), corresponding to an EBIT margin of 6%.
- Cash flow from operating activities amounted to SEK 164.5 m (21.6).
- Earnings per share were SEK 0.42 (0.32).
- 4 owned titles and 6 publishing titles were released in the second quarter.
- The company completed a directed new share issue and received proceeds of approximately SEK 1,448 million before transaction costs.
- The company’s change of the financial year to end March 31 was confirmed by authorities.
INTERIM PERIOD JANUARY-JUNE 2018
- Net sales increased by 778% to SEK 1 470,4 m (167.5).
- EBITDA increased by 430% to SEK 432.8 m (81.6), corresponding to an EBITDA margin of 29.4%.
- EBIT increased by 157% to SEK 159.8 m (62.2), corresponding to an EBIT margin of 11%.
- Cash flow from operating activities amounted to SEK 864.3 m (51.3).
- Earnings per share were SEK 1.44 (0.65).
- As of 30 June 2018, cash and cash equivalents were SEK 1,513.7 m. Available liquidity including credit facilities was SEK 2,686.4 m.
For additional information, please contact:
Lars Wingefors, Founder and CEO
Tel: +46 708 471 978
About THQ Nordic
THQ Nordic acquires, develops and publishes PC and console games for the global games market. The company has 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 eleven internal game development studios based in Germany, UK, USA and Sweden and engages almost 1,750 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
This Interim Report is information that is mandatory for THQ Nordic to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 06:30 CET on 15 August 2018.