THQ Nordic Annual Report 2017

THQ Nordic experienced a transformative fiscal year in 2017, characterized by aggressive expansion and a refined focus on intellectual property acquisition. The company’s core strategy centers on the systematic purchase of established franchises, which are subsequently revitalized through asset care, remasters, and the development of new sequels. By leveraging existing fan bases, the firm effectively mitigates the inherent risks of game development while maximizing market reach across both digital and physical distribution channels. This approach proved highly effective, as the company managed a portfolio of 91 franchises and a pipeline of 36 active projects by the close of the year.

Financial performance during this period was robust, with net sales reaching SEK 507.5 million and an operating profit of SEK 188.2 million, resulting in a strong EBIT margin of 37 percent. The company’s balance sheet saw significant strengthening, with total consolidated assets rising to SEK 1,328.8 million, supported by a successful rights issue that increased equity to SEK 1,073.2 million. This capital influx provided the necessary liquidity to pursue larger strategic opportunities, including the pivotal acquisition of Koch Media in early 2018 for an enterprise value of EUR 121 million.

The integration of Koch Media represents a major escalation in the company’s global publishing capacity and intellectual property portfolio, adding high-profile titles such as Saints Row, Dead Island, and Metro to its holdings. By combining these newly acquired AAA assets with an expanded network of internal and external development studios, the organization has positioned itself for sustained growth within the global gaming market. This strategic trajectory underscores a commitment to scaling operations through a blend of organic development and high-value acquisitions, ensuring a diversified and resilient business model for future fiscal periods.