THQ Nordic Q2 2018 Interim Report

The THQ Nordic Q2 2018 interim report details a period of significant financial expansion and strategic growth for the gaming group. Driven by the consolidation of Koch Media and a robust release schedule, the company achieved net sales of SEK 837 million, representing an 878% year-over-year increase. EBITDA reached SEK 207 million, a 421% increase compared to the same period in the previous year. This performance reflects the company’s dual-segment structure, which balances its internal Games business—comprising THQ Nordic and Deep Silver—with its Partner Publishing and Film division.

The company’s financial position was bolstered by a successful share issue in June 2018, which raised SEK 1,448 million, and the establishment of €85 million in new credit facilities in July. These capital-raising activities are intended to fund ongoing acquisitions of intellectual property, studios, and game development projects. As of June 30, 2018, the company held SEK 2,028 million in intangible assets, with the vast majority—SEK 1,412 million—allocated to ongoing game development projects.

Operational highlights include the release of 10 titles during the quarter, such as Wreckfest and Pillars of Eternity II: Deadfire, alongside the acquisition of the developer HandyGames. The company maintains a deep development pipeline consisting of 51 total projects, including 17 announced titles and 34 unannounced projects. Key strategic focus areas include the acquisition of influential franchises like TimeSplitters and the continued investment in internal development, which saw capitalized costs rise significantly throughout the first half of 2018. The report underscores a transition toward a larger, more diversified publisher with a strong emphasis on both owned intellectual property and third-party publishing partnerships.