THQ Nordic AB (publ) publishes interim report for January – September 2016

Successful launches generate profitable growth

THQ Nordic continued its growth in the third quarter. The primary growth drivers were successful new launches of the games “Titan Quest Anniversary Edition” and “MX vs. ATV Supercross Encore” on Xbox One. This corroborates our asset care strategy, of managing and enhancing popular games and brands. Publishing titles such as Fatshark’s “Warhammer: End Times – Vermintide”, Microsoft’s “Quantum Break” and “State of Decay”, as well as Weappy Studios’ “This is the Police”, also contributed to growth. We changed corporate name to THQ Nordic at Gamescom in August, a move well received by gamers and the gaming industry. We plan to float the THQ Nordic share on Nasdaq First North before year-end, which will take the Company into a new developmental phase.

–Lars Wingefors, Founder & CEO

Third quarter 2016

  • Net sales increased by 95% to SEK 77.9 m (40.0).
  • Owned titles represented SEK 43.6 m (25.0), or 56%, of net sales in the quarter.
  • EBITDA was SEK 25.4 m (16.1), corresponding to an EBITDA margin of 32.5%.
  • Cash flow from operating activities amounted to SEK 20.5 m (8.4).
  • Earnings per share (diluted) amounted to SEK25.34 (14.33).
  • SEK 50 m loan facility signed with Lars Wingefors AB.
  • Two owned titles and four publishing titles launched in the period.

Interim period January – September 2016

  • Net sales increased by 52% to SEK 173.7 m (114.5).
  • Owned titles represented SEK 119.5 m (79.5), or 69%, of net sales in the period.
  • EBITDA was SEK 71.6 m (52.8), corresponding to an EBITDA margin of 41.2%.
  • Cash flow from operating activities amounted to SEK 47.9 m (46.6).
  • Earnings per share (diluted) amounted to SEK 67.92 (47.27).
  • As of 30 September 2016, cash and cash equivalents were SEK 12.2 m (4.1)

Throughout the Report, all comparatives within parentheses refer to the corresponding period of the previous year, unless otherwise stated.

KEY PERFORMANCE INDICATORS, SEK m GROUPMSEK  Jul-Sep 2016  Jul-Sep 2015  Jan-Sep 2016  Jan-Sep 2015  Full year 2015
Net sales 77.9 40.0 173.7 114.5 212.9
EBITDA 25.4 16.1 71.6 52.8 105.1
Under lying EBIT 19.3 12.7 54.4 40.5 78.9
Profit after tax 12.7 7.2 34.0 23.6 51.2
Earnings per share, SEK 25.34 14.33 67.92 47.27 102.48
Cashflow from operating activities 20.5 8.4 47.9 46.6 109.9
Sales growth,  % 95 9 52 5 20
EBITDA margin, % 33 40 41 46 49
Underlying EBIT margin, % 25 32 31 35 37
Net sales split:          
– Owned titles, % 56 63 69 69 76
– Publishing titles, % 44 36 31 29 22
Release

Embracer Group is the parent company of businesses developing and publishing PC, console and mobile games for the global games market. The Group has an extensive catalogue of over 190 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency and World War Z amongst many others.

With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its six operative groups: THQ Nordic GmbH, Koch Media GmbH/Deep Silver, Coffee Stain AB, Amplifier Game Invest, Saber Interactive and DECA Games. The Group has 43 internal game development studios and is engaging more than 4,000 employees and contracted employees in more than 40 countries.