THQ

Embracer Group Q2 FY20/21 Interim Report

Embracer Group’s second quarter fiscal year 2020/2021 report highlights a period of significant financial expansion and operational scaling.

• Embracer Group achieved record financial performance in Q2 FY20/21 with net sales of SEK 2,383 million, an 89% year-over-year increase.
• Operational EBIT grew by 171% to SEK 653 million, bolstered by a 61% organic growth rate and strong performance from back catalog titles.
• The company’s development pipeline reached an all-time high of 135 projects, supported by a workforce of over 3,600 developers across 102 internal and external studios.

Embracer Group Acquires Pow Wow Entertainment

Embracer Group has finalized the acquisition of Vienna-based Pow Wow Entertainment, integrating the studio into its THQ Nordic subsidiary.

• Embracer Group has acquired Vienna-based Pow Wow Entertainment, integrating the 20-person studio into its THQ Nordic subsidiary.
• Pow Wow Entertainment will retain operational independence and creative autonomy while continuing to self-publish its titles.
• The studio’s current development pipeline includes an original roguelike multiplayer platformer and a project utilizing an existing THQ Nordic intellectual property.

Embracer Group M&A Update: August 13, 2020

Embracer Group’s August 2020 update outlines a strategic expansion through aggressive mergers and acquisitions, formalizing its transition into a diversified conglomerate comprising six distinct operating groups.

• Embracer Group has transitioned into a conglomerate structure organized into six operating groups: THQ Nordic, Koch Media, Coffee Stain, Amplifier Game Invest, Saber Interactive, and DECA.
• The company employs a decentralized governance model that allows original founders and management teams to retain operational autonomy while utilizing centralized capital and strategic support.
• As of August 2020, the portfolio includes 43 internal studios, 55 external studios, and 190 intellectual properties.

Interim Report 1: April–June 2020

Embracer Group experienced a period of substantial financial and operational expansion during the first quarter of 2020, ending June 30.

• Embracer Group reported net sales of SEK 2,069 million for the quarter ending June 30, 2020, marking an 81 percent increase year-over-year.
• Operational EBIT surged by 249 percent to SEK 712 million, while EBITDA reached SEK 965 million, representing a 47 percent margin.
• The company’s growth was driven by the integration of Saber Interactive and increased consumer demand during the COVID-19 pandemic.

Embracer Group Q4 FY19/20 Full Year Report

Embracer Group’s full-year report for fiscal year 2019/2020 details a period of significant operational expansion and financial growth, characterized by a robust pipeline of game development and strategic acquisitions.

• Embracer Group achieved net sales of SEK 5,249 million for FY19/20, a 3% year-over-year increase, with operational EBIT rising 35% to SEK 1,033 million.
• The company acquired Saber Interactive to bolster its technical capabilities and portfolio, supported by a SEK 1.6 billion capital raise via a directed share issue in April 2020.
• Digital sales reached a record high of 78% of total revenue during the final quarter of the fiscal year.

Embracer Group Q2 FY19/20 Interim Report

The Embracer Group’s Q2 FY19/20 interim report highlights a period of significant financial growth and strategic expansion, characterized by a 47% year-over-year increase in net sales to SEK 1,260 million.

Annual General Meeting FY 18/19: Presentation

The 2019 Annual General Meeting presentation outlines the strategic and financial trajectory of Embracer Group, emphasizing a dual-growth model driven by aggressive acquisitions and organic development.

• Embracer Group achieved massive financial scaling in FY 18/19, with net sales increasing 1,033% to 5,754 million SEK and operational EBIT rising 344% to 897 million SEK.
• The company operates a decentralized 'buy-to-build' model across three autonomous sub-groups—THQ Nordic, Deep Silver, and Coffee Stain—supported by 2,208 total employees and contractors.
• As of mid-2019, the group held 2,011 million SEK in net cash, providing the liquidity necessary to sustain its aggressive acquisition strategy for dormant intellectual properties.

THQ Nordic: Embracer Group Investor Presentation

Embracer Group operates as a decentralized parent organization overseeing a vast portfolio of gaming studios, including THQ Nordic, Koch Media, and Warhorse Studios.

• Embracer Group operates as a decentralized parent organization managing a portfolio that includes THQ Nordic, Koch Media, and Warhorse Studios.
• The company maintains a global footprint with operations spanning more than 40 countries across Europe, North America, Africa, and Asia.
• Corporate strategy is defined by four strategic pillars: Business Sense, Solid Work, Great People, and Greener Planet.

Annual Report 2018/19

The 2018/19 fiscal period marked a transformative era for the THQ Nordic Group, characterized by aggressive expansion, structural reorganization, and significant financial growth.

THQ Nordic AB (publ) Acquires Gunfire Games: Investor Presentation

THQ Nordic AB has finalized the acquisition of Gunfire Games, an Austin-based studio recognized for its expertise in action-adventure titles and virtual reality development.

• THQ Nordic AB has acquired Austin-based Gunfire Games, marking the company’s first owned development footprint in the United States.
• The acquisition is projected to be recouped within three to four years through immediate cash flow from existing IP, including 'Remnant: From the Ashes', and reduced royalty and development costs.
• Gunfire Games will retain operational independence and creative freedom, allowing the studio to continue external collaborations while contributing to THQ Nordic’s internal development pipeline.

THQ Nordic AB Acquires Goodbye Kansas Game Invest: Investor Presentation

THQ Nordic AB expanded its footprint in the Nordic gaming ecosystem through the acquisition of Goodbye Kansas Game Invest, a Stockholm-based platform specializing in early-stage investments.

• THQ Nordic AB acquired Goodbye Kansas Game Invest for 42 million SEK to expand its Nordic development footprint and internal capabilities.
• The acquisition grants THQ Nordic equity stakes ranging from 21% to 50% in five game studios: Framebunker, Neon Giant, Palindrome Interactive, Kavalri, and Fall Damage.
• The deal includes the acquisition of royalty rights for the action RPG title Biomutant.

THQ Nordic AB Acquires Milestone s.r.l.: Investor Presentation

THQ Nordic AB finalized the acquisition of the Italian game developer Milestone s.r.l. on August 14, 2019, to bolster its position in the global racing simulation market.

• THQ Nordic acquired Italian developer Milestone s.r.l. on August 14, 2019, for a total upfront consideration of EUR 55.8 million, comprised of EUR 44.3 million in cash and EUR 11.5 million in B-shares.
• The acquisition includes an earn-out provision tied to Milestone’s adjusted EBIT performance through the end of fiscal year 2022.
• Milestone brings a portfolio of established racing franchises including MotoGP, MXGP, Monster Energy Supercross, and RIDE, supported by a pipeline of ten titles scheduled for release between 2020 and 2022.