THQ Nordic AB have published their Q5 earnings release, which covers 1 January 2019 through 31 March 2019.
The fiscal year 2018/2019 had five quarters, due to an adjustment to the broken bookyear of Koch Media.
Link to full report
JANUARY–MARCH 2019
(Compared to January–March 2018)
Net sales of Koch Media Partner Publishing: SEK 596 million (~$61.7 million)
Net sales of THQ Nordic GmbH: SEK 143 million (~$14.8 million)
Net sales of Coffee Stain: SEK 98 million (~$10.2 million)
JANUARY 2018–MARCH 2019, 15 MONTHS
(Compared to full year 2017)
Main performance drivers of Q5 sales were Metro Exodus (Deep Silver) and Satisfactory (Coffee Stain).
Unfortunately, no hard sales numbers were shared.
Human resources
Internal developers: 860
Total internal employees: 1353 (1218 on average in the quarter)
External developers: 807
Achievements during the quarter
Metro Exodus has been the largest game launch for the Group so far, and it is already making a profit.
Notable Partner Publishing releases:
The Group is working on content for streaming and digital subscription services.
The Group has reached a new agreement with 4A Games on a new AAA project. 80 games are in development.
The fiscal year 2018/2019 had five quarters, due to an adjustment to the broken bookyear of Koch Media.
Link to full report
JANUARY–MARCH 2019
(Compared to January–March 2018)
- Net sales increased 158% to SEK 1,630.5 m (~$168.94 million) (632.9).
- EBITDA increased 174% to SEK 618.6 m (~$64.09 million) (225.9), corresponding to an EBITDA margin of 38%.
- Operational EBIT increased 217% to SEK 395.9 m (~$41.02 million) (124.9) corresponding to an Operational EBIT margin of 24%.
- Cash flow from operating activities amounted to SEK 777.2 m (~$80.53 million) (699.8).
- Earnings per share was SEK 1.10 (1.02).
Net sales of Koch Media Partner Publishing: SEK 596 million (~$61.7 million)
Net sales of THQ Nordic GmbH: SEK 143 million (~$14.8 million)
Net sales of Coffee Stain: SEK 98 million (~$10.2 million)
JANUARY 2018–MARCH 2019, 15 MONTHS
(Compared to full year 2017)
- Net sales increased to SEK 5,754.1 m (~$596.30 million) (507.5).
- EBITDA increased to SEK 1,592.6 m (~$165.04 million) (272.6), corresponding to an EBITDA margin of 28%.
- Operational EBIT increased to SEK 897.1 m (~$92.97 million) (202.3) corresponding to an Operational EBIT margin of 16%.
- Cash flow from operating activities amounted to SEK 1,356.4 m (~$140.56 million) (179.1).
- Earnings per share was SEK 4.68 (1.88).
- As of 31 March 2019, cash and cash equivalents were SEK 2,929.1 million (~$303.54 million). Available cash including credit facilities was SEK 4,521.1 million (~$468.52 million).
Main performance drivers of Q5 sales were Metro Exodus (Deep Silver) and Satisfactory (Coffee Stain).
Unfortunately, no hard sales numbers were shared.
Human resources
Internal developers: 860
Total internal employees: 1353 (1218 on average in the quarter)
External developers: 807
Achievements during the quarter
Metro Exodus has been the largest game launch for the Group so far, and it is already making a profit.
Net sales of business area Deep Silver were SEK 794 million, largely driven by the release of Metro Exodus, the largest game launch so far in the history of the Group. Overall, the game has performed in line with management's expectations and has recouped all investments in development and marketing.
Notable Partner Publishing releases:
- Kingdom Hearts III by Square Enix
- Resident Evil 2 by Capcom
- Dirt Rally 2.0 by Codemasters
- Devil May Cry 5 by Capcom
- Monster Energy Supercross 2 by Milestone
- Dead or Alive 6 by Koei Tecmo
The Group is working on content for streaming and digital subscription services.
We are operating in a dynamic market with increasing competition between new and established digital distribution platforms, which will benefit content producers, including THQ Nordic Group. Since the beginning of 2019, the Group has signed multiple deals with notable value relating to our content on digital subscription, streaming and download services on various platforms. As we look ahead over the coming years, these deals will help us create compelling content for our players while also reducing financial risk to the company. Revenue recognition will not begin until the games are released.
The Group has reached a new agreement with 4A Games on a new AAA project. 80 games are in development.
During the period we signed multiple new projects, among them a new development agreement with 4A Games, the developers of the Metro franchise, for their upcoming, still undisclosed, AAA-project. By the end of the quarter, THQ Nordic, Deep Silver and Coffee Stain had 80 games in development, of which 48 titles are currently unannounced.
We are looking forward to an exciting upcoming year. We have a well-positioned pipeline and many marketing activities ahead – including both E3 and Gamescom – that will be important events for the Group as we showcase our games to a global audience.
I would like to end by sending my true thanks to all of our customers, colleagues, and business partners that helped to make this past year our best ever. We are on a great journey to build something substantial and lasting together, and I'm confident the coming years will be even more exciting.
MAY 22, 2019, KARLSTAD, SWEDEN
– LARS WINGEFORS, FOUNDER & CEO