THQ Nordic Interim Report: 1 January - 30 September 2018

THQ Nordic experienced a period of transformative growth during the first nine months of 2018, characterized by aggressive corporate expansion and a substantial increase in operational scale. The company’s primary objective throughout this period was to solidify its position as a global publisher through strategic acquisitions and the diversification of its intellectual property portfolio. By integrating Koch Media and HandyGames, the organization significantly broadened its reach, resulting in a robust pipeline of over 400 products and 55 active development projects.

Financial performance reflected this rapid scaling, with net sales for the nine-month period surging to SEK 2,743 million, a dramatic increase from the SEK 252 million recorded during the same timeframe in 2017. The third quarter alone saw net sales climb by 1,403% to SEK 1,272.7 million, while EBIT rose by 278% to SEK 90.8 million. These gains were bolstered by a successful rights issue, which provided the necessary capital to support the acquisition of high-profile intellectual properties such as Alone in the Dark and Kingdoms of Amalur.

While the company achieved significant top-line growth, the rapid expansion necessitated a substantial increase in human capital, with the workforce growing to 1,021 employees. This investment in personnel and development projects contributed to a shift in profitability metrics, as the EBIT margin contracted from 34% to 9% year-over-year. Despite this margin compression, the company maintains a strong financial foundation and a clear strategic focus on leveraging its expanded publishing labels to drive long-term value across the global gaming market.