THQ Nordic AB (publ) publishes Q3 for 2017

EBIT INCREASED BY 50%

We continue to capitalize on our asset care strategy. During the quarter, we had higher sales of owned titles and increasing digital sales. Net sales increased by 8.8% to SEK 84.7 m, EBITDA was up 36% to SEK 34.6 m and EBIT increased by 50% to SEK 24.0 m compared to the same period last year.

During the quarter we acquired and welcomed two new development studios to the THQ Nordic family; Black Forest Games and Pieces Interactive. Both are developing products that are soon to be announced and released.

In August, during Gamescom, we announced the upcoming title Biomutant. The feedback for the title – from both press and the gaming community – was beyond our expectations. We now expect Biomutant to be one of our future key titles.

During the end of the period, we raised SEK 598.0 m before transaction costs in a new share issue directed to reputable institutional investors. We continue to work intensely to evaluate interesting investment opportunities to strengthen our position and long-term growth. THQ Nordic has a unique position and strategy in the market and we will leverage this over the coming years.

We are now focusing on executing our plan for the final quarter of the year, as well as planning for the year ahead. I have great confidence that 2018 will be our most exciting year so far.

– LARS WINGEFORS, FOUNDER & CEO 

THIRD QUARTER 2017 

· Net sales increased by 8.8% to SEK 84.7 m (77.9).
· Owned titles represented SEK 62.6 m (43.6), or 74%, of net sales in the quarter.
· EBITDA was SEK 34.6 m (25.4), corresponding to an EBITDA margin of 41%.
· EBIT was SEK 24.0 m (16.0), corresponding to an EBIT margin of 28%.
· Cash flow from operating activities amounted to SEK 29.2 m (20.5).
· Earnings per share amounted to SEK 0.26 (0.21).
· Three owned titles and two publishing titles launched in the third quarter.

INTERIM PERIOD JANUARY-SEPTEMBER 2017

· Net sales increased by 45% to SEK 252.1 m (173.7).
· Owned titles represented SEK 183.0 m (119.1), or 73%, of net sales in the period.
· EBITDA was SEK 116.2 m (71.6), corresponding to an EBITDA margin of 46%.
· EBIT was SEK 86.2 m (44.4), corresponding to an EBIT margin of 34%.
· Cash flow from operating activities amounted to SEK 80.5 m (47.9).
· Earnings per share amounted to SEK 0.91 (0.57). 
· As of 30 Sep 2017, cash and cash equivalents were SEK 666.9 m (12.2).

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

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.