THQ Nordic’s “strategy of diversification is paying off,” according to the company’s latest financial report. Founder and CEO Lars Wingefors summarized the company’s recent boom by highlighting the increase in net sales and earnings.
Net sales increased by 1,403% to a record SEK 1,272.7 million in the quarter. Earnings Before Interest Taxes, Depreciation, and Amortization (EBITDA) increased by 521% to SEK 214.8 million and EBIT increased by 278% to SEK 90.8 million compared to the same period last year.
These numbers reflect both THQ Nordic and the recently acquired Koch Media. But acquisitions aren’t a simple matter of getting studios and IPs, then automatically raking in more profits. THQ Nordic’s cash flow from operating activities took a big hit, coming in at “SEK –740.1 million, [drastically down from last year’s SEK 29.2 million] mainly due to the decision to replace forfeiting of receivables with bank debt within Koch Media.”
THQ Nordic attributed its 47% increase in net sales (to SEK 124.2 million) to the release of Titan Quest, Red Faction Guerilla Re-Mars-tered, and This is the Police 2, as well as Wreckfest’s performance. In addition, the report said, “Net sales of Deep Silver were SEK 251.8 million, driven by the release of Dakar 18 and a good performance of Pathfinder Kingmaker at the end of the quarter.”
While financial reports provide a space to explain past failures and successes, it’s also an opportunity to plan for the future. Wingefors stated that by the end of the quarter they had “55 games under development, of which 35 are still in the pipeline waiting to be announced.”
THQ Nordic Acquisitions Lead to Record Breaking Sales
But for those concerned about next big THQ Nordic game coming up, be sure to pick up Darksiders III when it releases on November 27, 2018.
[Source: THQ Interim Report]