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Finance

THQ records quarterly loss of $92.4m, sales of $146m

Thu 03 Nov 2011 8:18am GMT / 4:18am EDT / 1:18am PDT
Finance

Publisher doubles both revenues and losses from same quarter last year

THQ has reported a loss of $92.4 million for the quarter ending 30 September, 2011, alongside revenues of $146 million, resulting in a loss per share of $1.32.

Both the sales and the loss figures are double what they were at the same time last year, when sales were $77.1 million and the bottom line was a loss of $46.9 million.

This quarter, sales were predominantly driven by Warhammer 40K: Space Marine and the company's uDraw tablet for Wii. For the future, expectations lay heavy on the shoulders of the Autumn's Saints Row: the Third, which THQ expects to net it a record quarter.

"We are encouraged that our second quarter performance exceeded our expectations, particularly in a quarter with a light release schedule," said CEO Brian Farrell.

"Our two biggest quarters of the year remain ahead of us, and we are focused on execution. In Q3 we are planning for the largest quarter in our history, in terms of sales and earnings, driven by Saints Row: The Third, the uDraw GameTablet, and WWE '12. With UFC Undisputed 3 launching in the fourth quarter, we are well-positioned to deliver a strong second half of fiscal 2012."

There was some positive news to be read from the balance sheet. Digital revenues were up 68 per cent year-on-year, a sector which the company expects to continue its growth. THQ has also arranged a new $75 million credit line with Wells Fargo for the coming period.

In the past year THQ has had to close a number of internal studios, including THQ Warrington and Homefront developer Kaos. The publisher also shelved its Red Faction franchise after a two-game reboot failed to generate sufficient sales.

10 Comments

That's a new one... double revenue - double loss! Is this supposed to be a good result?

I can't say I'm optimistic about their next 2 quarters, there are much bigger games coming out...

Posted:2 years ago

#1
I am not sure that I would pin any improved revenues just on Saints row. They need some seriously new good iPs

Posted:2 years ago

#2
What happened with Homefront in the end? Did it make any money, do we know how many copies it sold? Just curious.

Posted:2 years ago

#3

Liam Stockley
Studying Computer Science

24 0 0.0
Fran: I believe it didn't do too well.

Posted:2 years ago

#4

Andrew Clayton
QA Weapons Tester

150 7 0.0
That's too bad. I'm not a huge fan of THQ's past games (though it had some hits), but I like the way that it's been restructuring itself. More effort put into Homefront, Saints Row, and Warhammer, less put into terrible movie-based games.

Still, this won't go over well with the investors.

Posted:2 years ago

#5
Oh man, I'm addicted to the incredible good Warhammer: Space Marine. I hope they had made some good money with this game. I really want a sequel, but this time, playing as a Eldar!

Posted:2 years ago

#6

Terence Gage
Freelance writer

1,288 120 0.1
I read on TheSixthAxis the other day that Space Marine had shipped 1.5 million copies, which relatively seems like a healthy figure - particularly considering it launched amidst a slew of much better-known massive budget gaming brands. The problem is, in Triple-A development that might not even be enough to break even, so who knows if they'll make any more.

A little bit OT, but I was watching some footage of Halo Anniversary the other day and it's looking amazing, and it made me think I'd love to see Red Faction get a similar remake. I mean, it was one of the first high-quality FPSs in the PS2 era and I still think it has an excellent campaign and great level design. I'd love to see it be given a high-quality remake using Geo-Mod 2.0, probably with some tweaking of the AI and controls, and maybe fresh voiceovers and cutscenes. I still think it's a shame they abandoned the franchise.

Posted:2 years ago

#7

Andrew Goodchild
Studying development

1,199 317 0.3
Homefront definitely sold over the 2 million it needed to break even, and Crytek have been drafted in to make the sequel last I heard.

Posted:2 years ago

#8

Andrew Goodchild
Studying development

1,199 317 0.3
Personally looking forward to Darksiders 2. Really liked the first one.

Posted:2 years ago

#9
Well THQ have both the following to look forward to

1/ inSANE (looks like a survival horror rift on the inFamous logo)
2/ Darksiders 2
3/ Metro: last light (could be some fun)
4/ Devil's third (some good unique japanese dev title)

Saints Row (vs GTA V) - may appeal to some types of players but not all?

from the above, perhaps it just needs even 1 title to do well, for its restructuring to make amends?

Posted:2 years ago

#10

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