Thunderful Group Q2 2023 Presentation

Key insights

7 takeaways

01
Thunderful Group reported Q2 2023 net sales of 715.3 MSEK, a 23.2% increase year-over-year, driven primarily by a 30.6% growth in the Distribution segment.See it on page 12
02
The Distribution segment achieved an adjusted EBITA of 50.1 MSEK, a 56% increase year-over-year, significantly bolstered by the Bergsala unit's success with 'The Legend of Zelda: Tears of the Kingdom'.See it on page 19
03
The Games segment generated 107.1 MSEK in net sales, a 6.8% decline year-over-year, though it maintained a solid adjusted EBITA margin of 25.5%.See it on page 17
04
Operating cash flow remained negative at -29.5 MSEK, largely due to a 56.3 MSEK inventory build-up within the Distribution segment.See it on page 16
05
The Nordic Game Supply unit experienced a 30% year-over-year decline in net sales and an EBITDA loss of 5 MSEK, impacted by weak consumer demand and business closure costs in Germany.See it on page 19
06
Thunderful's Games publishing pipeline includes 12 external titles, with six releases currently scheduled for the second half of 2023.See it on page 14
07
Total capital expenditure for the Games segment reached 64 MSEK in Q2 2023, reflecting increased investment in development personnel and projects.See it on page 18

Summary

Anders Maiqvist Lennart Sparud a42 MSEK in net sales contribution from new releases in the Games segment, reaching Net Sales of 107 MSEK and aImproved profitability in Distribution driven by Bergsala. Distribution segment's Net Sales of 608 MSEK is +31% y/o/y, while adj. EBITDA of 27 MSEK is +250% y/o/y. aCash flow from operating activities was -30 MSEK in Q2. • Negatively impacted by inventory build-up of 56 MSEK, including prepayments and goods in transit of 65 MSEK.