Thunderful

Game Co.

3 documents

Documents

Thunderful Group Q1 2025 Interim Report

Thunderful Group’s interim report for the first quarter of 2025, covering January through March, details a period of significant structural transformation following extensive restructuring in 2024. The primary thesis centers on the company’s transition into a leaner, more focused entity specialized in game publishing and co-development after divesting its distribution businesses. Financial performance shows a 7.0% increase in net revenue to SEK 62.0 million, compared to SEK 58.0 million in the same period the previous year. While the company reported an operating loss (EBIT) of SEK 65.7 million, this represents a substantial improvement from the SEK 153.9 million loss in Q1 2024. The result was impacted by SEK 29.4 million in write-downs of intangible assets. Adjusted EBITDA improved to SEK –9.2 million from SEK –29.4 million, reflecting reduced personnel expenses, which fell 36.5% following a headcount reduction from 355 to 249 employees. The Publishing segment generated SEK 32.5 million in revenue, driven by back-catalog sales, while the Co-development & Services segment contributed SEK 29.6 million, primarily through work-for-hire projects at Coatsink. Strategic developments during the quarter included the transfer of all shares in Jumpship Ltd to its former owner and a directed share issue to Microcuts Holding GmbH to settle earnout obligations. Geographically centered in Gothenburg, Sweden, with operations across Europe, the group’s outlook relies on a heavy 2025 release schedule, including titles such as Lost in Random: The Eternal Die and Replaced. Management notes that while the restructuring has stabilized the cost base, future financial stability is highly dependent on the commercial success of these upcoming launches. Cash and unutilised credit facilities stood at SEK 83.1 million at the end of the period.

market-analysis mergers-acquisitions investment+2

ThunderfulMar 2025

Financial

Thunderful Group Q4 2024 Report

Thunderful Group underwent a profound structural transformation throughout 2024, shifting its strategic focus toward external publishing and core internal development while divesting its distribution segment and several subsidiaries, including Headup and Jumpship. This transition resulted in a significant decline in financial performance, with annual net revenue falling 23.8% to 292.8 MSEK and Q4 revenue dropping 27.6% to 77.4 MSEK. The fiscal year was defined by a substantial operating loss of 917.3 MSEK, primarily driven by 848 MSEK in depreciation and asset write-downs. These impairments reflect the aggressive cleanup of the balance sheet as the organization streamlined its workforce to 297 employees and moved away from non-core business units. Despite the heavy accounting losses and a deterioration of the adjusted EBITDA margin to -14.1%, the group successfully stabilized its financial position by reducing interest-bearing net debt from 402.1 MSEK to -7.7 MSEK. This improvement in liquidity was largely achieved through a drastic reduction in core working capital and the settlement of liabilities. Furthermore, a comprehensive cost-savings program is expected to generate between 80 and 90 MSEK in annual savings, positioning the company for a return to positive cash flow in the coming year. The outlook for 2025 remains optimistic, supported by a robust release pipeline consisting of twelve ongoing development projects. This portfolio includes eight internally developed titles, such as Reignbreaker and Lost in Random: The Eternal Die. By concentrating resources on a leaner operational model and a high-potential publishing slate, the group aims to recover from the volatility of its restructuring phase and establish a more sustainable, profitable trajectory within the global gaming market.

mergers-acquisitions market-analysis game-publishing+1

ThunderfulJan 2025

Financial

Thunderful Group Annual Report 2023

Thunderful Group’s 2023 fiscal year was defined by a significant strategic pivot and financial restructuring aimed at addressing historical over-investment and stabilizing a volatile balance sheet. The Group reported net sales of SEK 2.8 billion, a 4.6% year-over-year decline, and swung to a substantial operating loss of SEK 609.3 million. This downturn was primarily driven by SEK 838.9 million in depreciation, amortization, and impairments—most notably a SEK 500.4 million goodwill impairment within the Games segment. In response, leadership initiated a major restructuring program to divest its legacy distribution businesses, including Bergsala and Amo Toys, for SEK 630 million to amortize debt and focus exclusively on high-potential "AA" game development. The geographic and operational scope of the Group remains centered in the Nordics, with a consolidated structure of 30 companies. While the Distribution segment, anchored by a long-standing partnership with Nintendo, contributed SEK 2.4 billion in net sales, the Group’s future thesis rests on the Games segment. This division released 15 titles in 2023, including SteamWorld Build, and maintains a pipeline of 29 projects. To ensure long-term viability, the Group implemented a rigorous "Go-ahead" approval process and a restructuring plan targeting annual cost savings of SEK 90–110 million. Sustainability and governance remained core priorities during this transition. The Group expanded its workforce to 519 employees, maintained a 26.5% female workforce, and integrated ESG metrics across its logistics and development cycles. Despite a 64.5% decline in share price and the expiration of unexercised incentive programs, the Group secured necessary bank waivers and maintained a positive cash flow from operating activities of SEK 315.4 million. Moving forward, the Group aims for 25% annual organic growth in its Games segment, supported by a centralized leadership team under CEO Martin Walfisz.

sweden game-publishing investment+1

ThunderfulJan 2023