THQ Nordic AB Interim Report: Q1 2019

THQ Nordic AB demonstrates significant financial momentum and operational expansion during the first quarter of 2019, characterized by a 36 percent increase in net sales to SEK 1,142 million and a substantial 193 percent rise in operational EBIT to SEK 204 million. This growth is underpinned by strong performance across the company’s three core business segments—Deep Silver/Koch Media, THQ Nordic GmbH, and Coffee Stain—with a notable shift toward digital distribution, which now accounts for 71 percent of total revenue. The firm maintains a robust liquidity position, holding SEK 3.2 billion in cash and cash equivalents, supported by an equity-to-assets ratio of 64 percent.

The company’s long-term strategy centers on an aggressive development pipeline and strategic portfolio diversification. Currently, 81 games are in active development, supported by a global workforce of approximately 2,500 internal and external personnel. This commitment to content creation is bolstered by a capital investment of SEK 355.9 million during the quarter and the strategic acquisition of entities such as Game Outlet Europe AB and KSM GmbH to enhance distribution capabilities and media assets. These efforts are managed under a restructured leadership team, including the appointment of a new Group CFO and the promotion of co-founder Erik Stenberg to deputy Group CEO.

Operating as a global entity with a portfolio exceeding 100 franchises, including major intellectual properties like Saints Row, Dead Island, and Metro, the organization continues to solidify its market presence. By leveraging 18 internal studios and a diversified publishing model, the company effectively balances back-catalog monetization with the development of new titles. These findings reflect a period of sustained scaling, where the integration of acquired assets and a focus on digital-first revenue streams position the firm for continued growth within the international gaming industry.