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. Operating as a global holding company, the organization successfully transitioned toward a decentralized model, culminating in the proposal to rebrand as Embracer Group. This strategic shift was designed to better reflect the company’s role as a parent entity overseeing a diverse portfolio of subsidiaries, including THQ Nordic, Deep Silver/Koch Media, and Coffee Stain, which collectively manage over 100 owned franchises and 16 internal studios.

Financial performance during this 15-month period was robust, with net sales surging to SEK 5.75 billion, a substantial increase from the previous year’s SEK 507.5 million. This growth was fueled by a series of high-profile acquisitions, including Koch Media, Coffee Stain, and Warhorse Studios, alongside the successful release of Metro Exodus, the company’s largest title to date. To capitalize on these opportunities, the group strengthened its capital structure through directed share issues that raised over SEK 4.2 billion, providing the liquidity necessary to fund ongoing development projects and further intellectual property acquisitions.

The company’s long-term strategy focuses on the acquisition and stewardship of established franchises, leveraging a decentralized operational framework that empowers individual studios to maintain creative independence. By the end of the fiscal year, the group had scaled its workforce to over 1,000 employees and maintained 80 active game development projects. Supported by a strong cash position and rigorous internal governance, the organization is positioned to continue its trajectory as a major player in the global gaming industry, balancing rapid inorganic growth with a commitment to long-term asset care and sustainable development.