THQ Nordic Company Presentation: September 2017

THQ Nordic operates as a global video game publisher and developer with a core business model centered on the acquisition of intellectual property (IP) and the subsequent enhancement of those assets. By leveraging a strategy of asset care, which includes porting games to new platforms, releasing sequels, and expanding digital and physical distribution channels, the company aims to maximize the long-term value of its portfolio. As of September 2017, the company managed approximately 85 franchises and over 270 games, supported by a workforce of over 470 personnel across global offices in Sweden, Austria, Germany, and the United States.

The company’s financial performance reflects significant growth, with net sales and EBIT more than doubling in the first half of 2017 compared to the same period in 2016. This growth is underpinned by a shift toward digital distribution, which accounted for a record 69% of net sales by the second quarter of 2017. The firm maintains a balanced investment approach, allocating capital toward both internal and external development studios to support a pipeline that includes 13 announced and 17 unannounced projects. The company’s investment in intangible assets reached SEK 339 million by mid-2017, reflecting a commitment to scaling its content library.

Market positioning is focused on the PC and console segments, which represented nearly all of the company's 2016 net sales. By targeting established franchises and distressed assets that larger entities may no longer prioritize, the company utilizes its operational expertise to revitalize older titles and drive consistent cash flow. Future growth strategies involve further IP acquisitions, the exploration of mobile gaming opportunities, and the continued expansion of its internal development capabilities, all supported by a management team with extensive industry experience.