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 Jul Jul Jan Jan-Sep 2015  Full year 2015
INDICATORS, SEK m -Sep -Sep -Sep
GROUPMSEK  2016  2015  2016 
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, 25.34  14.33  67.92  47.27  102.48 
SEK 
Cashflow from 20.5  8.4  47.9  46.6  109.9 
operating activities 
Sales growth,  %  95  9  52  5  20 
EBITDA margin, %  33  40  41  46  49 
Underlying EBIT 25  32  31  35  37 
margin, % 
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 and console games for the global games market. The group has an extensive catalogue of over 130 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory and Wreckfest amongst many others.

With its head office in Karlstad, Sweden, Embracer Group has a global presence through its three operative groups: Koch Media GmbH/Deep Silver, THQ Nordic GmbH, and Coffee Stain AB. The group has eighteen internal game development studios engaging more than 2900 employees and contracted employers in more than 40 countries.