FinancialNintendo
Nintendo Q1 FY2024 Financial Results (English)
1 Jan 202425 pages~49 min full read
Thunderful Group reported a net revenue decline of 27.7% to 391.7 MSEK and an operating loss of 184.4 MSEK for Q1 2024, compared to a 19.2 MSEK profit in the same period last year.
The company initiated a restructuring program targeting 90–110 MSEK in annual cost savings, which included a 72.4 MSEK write-down following the cancellation or divestment of twelve game projects.
Revenue in the Games segment dropped 35.5% and the Distribution segment fell 25.7%, driven by weaker demand for Nintendo Switch products and the underperformance of SteamWorld Build.
Liquidity significantly tightened, with cash and credit facilities decreasing to 130.9 MSEK from 329.3 MSEK year-over-year, necessitating a bank waiver conditional on asset divestments.
Strategic divestments include the sale of the German publishing subsidiary Headup GmbH and the assets of Nordic Game Supply to reduce net debt.
Despite broader financial challenges, the Amo Toys division achieved 13.9% growth, and the company extended its Nintendo distribution agreement for the Nordics and Baltics through March 2026.
Thunderful Group’s interim report for the first quarter of 2024 details a period of significant financial decline and aggressive corporate restructuring. Net revenue fell 27.7 percent to 391.7 MSEK, while the group recorded an operating loss (EBIT) of 184.4 MSEK, a sharp reversal from the 19.2 MSEK profit reported in the same period the previous year. This downturn was driven by a 35.5 percent revenue drop in the Games segment and a 25.7 percent decrease in Distribution, largely due to weaker market demand for Nintendo Switch products and the underperformance of the internal title SteamWorld Build.
To address these challenges, the group initiated a restructuring program aimed at annual cost savings of 90–110 MSEK. This process involved a 72.4 MSEK write-down of capitalized development costs following the cancellation or divestment of twelve game projects. Strategic shifts include the divestment of the German publishing subsidiary Headup GmbH and the sale of Nordic Game Supply’s assets to reduce net debt. Despite these pressures, the group successfully extended its Nintendo distribution agreement for the Nordics and Baltics through March 2026 and reported 13.9 percent growth in its Amo Toys division.
The report covers the group’s global operations with a focus on European and Nordic markets for the period of January to March 2024. Financial data indicates a strained liquidity position, with cash and credit facilities dropping to 130.9 MSEK from 329.3 MSEK year-over-year. Management secured a bank waiver conditional on asset divestments and maintains that current funds are sufficient for continued operations. The overarching strategy moving forward emphasizes a simplified games portfolio, more rigorous project validation, and a balanced risk profile across internal and external development.
