Thunderful Group Q3 2024 Presentation: Strategic Restructuring

Key insights

7 takeaways

01
Thunderful Group is initiating a major restructuring of its Publishing segment, involving the redundancy of 80–100 FTEs and the closure of internal development studios to shift focus toward third-party publishing.See it on page 18
02
The restructuring will incur one-off costs of 25–30 MSEK and write-downs of 220–240 MSEK, with the objective of achieving 80–90 MSEK in annual cost savings.See it on page 18
03
Q3 2024 financial performance showed a net revenue of 74 MSEK (down 11% y/y) and an EBIT loss of 69 MSEK, driven by write-downs of capitalized development costs and lower publishing revenue.See it on page 7
04
The Publishing segment's performance was negatively impacted by the commercial underperformance of 'SteamWorld Heist II', resulting in a segment EBIT loss of 72 MSEK.See it on page 20
05
The group's headcount has been reduced by 14% year-over-year to 315 FTEs, and available liquidity stands at 120 MSEK as of September 2024.See it on page 8
06
The Co-development & Services segment remains unaffected by the restructuring, having generated 31 MSEK in revenue and 3 MSEK in EBIT during the quarter.See it on page 10
07
Future strategy aims for a release cadence of 4–5 games per year, with increased investment in external publishing rights to improve ROI for 2026 and beyond.See it on page 18

Summary

74 MSEK -2 MSEK -69 MSEK INVESTMENTS CASH FLOW OPS. AVAIL. LIQUIDITY 36 MSEK -36 MSEK 120 MSEK PUBLISHING CO-DEVELOPMENT & SERVICES • SteamWorld Heist II released to great critical acclaim • Coatsink continues to work closely with their co- but is commercially performing below expectations development clients, such as Meta, Sony Pictures and • Early Access launch of Aska in June con...