THQ Nordic Interim Report: 1 January - 30 September 2017

THQ Nordic experienced significant financial expansion during the first nine months of 2017, characterized by a 45 percent increase in net sales to SEK 252.1 million and an operating profit of SEK 86.2 million. This growth trajectory was bolstered by a successful directed share issue that raised SEK 598 million, providing the necessary capital to scale development operations. The company actively strengthened its internal capabilities through the strategic acquisitions of Black Forest Games and Pieces Interactive, positioning itself to manage a robust pipeline of 29 active development projects.

The company’s revenue model relies heavily on a balanced distribution strategy, utilizing both physical and digital channels to reach global markets. A notable trend during this period was the consistent performance of the back-catalogue, which frequently generated higher revenue than new title releases. While the upcoming launch of Biomutant serves as a primary indicator of future potential, the company maintains a diversified approach to its intellectual property portfolio to mitigate the inherent volatility of the gaming sector.

Operational success remains contingent upon navigating several identified risks, including the potential for project delays, shifting consumer preferences, and the competitive necessity of retaining specialized talent. Furthermore, the company faces structural vulnerabilities related to its reliance on a limited number of distributors and the ongoing requirement to protect its intellectual property. Despite these challenges, the organization maintains a positive outlook, leveraging its expanded workforce and strengthened balance sheet to sustain its growth strategy within the global video game industry.