THQ NORDIC Q4 EBIT INCREASED BY 102%
I’m proud of the whole THQ Nordic organisation, including our contracting developers and business partners, which has performed its most active quarter ever. We had a significant release activity in the quarter with eleven releases of which nine on own IPs. 74% of net sales came from new releases in the quarter and 26% from our back catalogue. I’m happy to note that 82% of net sales in the fourth quarter came from owned titles and 18% from publishing titles.
During the quarter, we also delivered our first in-house developed sequels to the market. Their overall performance has matched management expectations. Our new IP ELEX was well received by the fans but received mixed reviews from various media outlets due to its unique character and harsh style.
Our business grew rapidly; net sales increased by 99% to SEK 255 million in the quarter, EBITDA was up 157% to SEK 156 million and EBIT increased by 102% to SEK 102 million compared to the same period last year.
In November we acquired and welcomed the Stockholm based development studio Experiment 101 to the THQ Nordic family. They are developing one of our upcoming key titles: Biomutant. THQ Nordic has a solid growth strategy and a great position in the market which we will leverage over the coming years. I’m really looking forward to 2018, we will keep the excitement going.
– LARS WINGEFORS, FOUNDER & CEO
FOURTH QUARTER 2017
· Net sales increased by 99% to SEK 255.4 m (128.2).
· Owned titles represented SEK 208.2 m (94.0), or 82% (73), of net sales.
· EBITDA was SEK 156.4 m (60.8), corresponding to an EBITDA margin of 61% (47).
· EBIT was SEK 102.0 m (50.6), corresponding to an EBIT margin of 40% (39).
· Cash flow from operating activities amounted to SEK 98.6 m (51.3).
· Earnings per share (diluted) were SEK 0.93 (0.59).
· Nine owned titles and two publishing titles were released in the period.
FULL YEAR, JANUARY-DECEMBER 2017
· Net sales increased by 68% to SEK 507.5 m (301.9).
· Owned titles represented SEK 391.2 m (213.1), or 77% (71), of net sales in the period.
· EBITDA was SEK 272.6 m (132.4), corresponding to an EBITDA margin of 54% (44).
· EBIT was SEK 188.2 m (95.0), corresponding to an EBIT margin of 37% (31).
· Cash flow from operating activities amounted to SEK 179.1 m (99.2).
· Earnings per share (diluted) were SEK 1.88 (1.18).
· As of 31 December 2017, cash and cash equivalents were SEK 626.5 m (167.4). The Company also had unutilized credit facilities of SEK 140.2 m (71.2).
· The Board proposes no dividend for the financial year 2017.
All figures in brackets are for the corresponding period of the previous year, unless otherwise stated.
For additional information, please contact:
Lars Wingefors, Group CEO, Phone: +46 708 471 978, E-mail: email@example.com
About THQ Nordic
THQ Nordic acquires, develops and publishes PC and console games. The company has a wide catalogue of 299 games, including 91 owned franchises, such as Darksiders, Titan Quest, MX vs ATV, Red Faction, Destroy All Humans, Aquanox, ELEX, Biomutant, Jagged Alliance, SpellForce and The Guild. THQ Nordic has a global publishing reach within marketing, sales and distribution, both online and offline. The group’s head office is based in Karlstad, Sweden and its publishing office in Vienna, Austria. THQ Nordic employs and contractually collaborates with 462 people, including external developers, and has seven internal development studios based in Germany, USA and Sweden. THQ Nordic 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 year-end 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 February 14, 2018.THQ Nordic Q4 2017