THQ Nordic Annual Report 2016

THQ Nordic achieved significant financial and operational expansion during 2016, marked by a successful initial public offering on the Nasdaq First North Stockholm exchange. The company realized a 42 percent increase in net sales, reaching 301.9 million SEK, while maintaining a stable EBIT margin of 31 percent. This growth was underpinned by a strategic focus on acquiring and revitalizing established intellectual property, supported by a capital injection of 223 million SEK from the IPO and a newly established 100 million SEK credit facility. By the end of the year, the organization had grown to 68 employees across international subsidiaries, reporting a total profit of 71.9 million SEK and earnings per share of 1.18 SEK.

The core business strategy centers on a diversified portfolio of 79 owned brands and over 200 publishing titles within the global PC and console gaming markets. The company employs a systematic three-step approach to value creation: expanding distribution, performing asset care through remasters and ports, and developing sequels for existing franchises. This model is designed to mitigate the inherent risks of the gaming industry by balancing a large catalog of legacy assets with a robust pipeline of 27 internal development projects, such as ELEX.

Operational governance remains anchored by a commitment to standardized financial reporting and disciplined asset management. Accounting policies reflect this focus, with specific amortization schedules for acquired IP rights and internally developed software. The company maintains a stable ownership structure led by CEO Lars Wingefors and CFO Erik Stenberg, with financial statements receiving an unqualified audit from Ernst & Young. Moving forward, the group is positioned to scale its internal development capacity and leverage its extensive library of intellectual property to drive long-term growth in both digital and physical distribution channels.