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THQ Nordic posts 673% revenue increase following acquisition of Koch Media

Excluding Koch Media revenue, THQ Nordic still up 64 per cent

Driven by the acquisition of Koch Media in February, THQ Nordic has posted a year-on-year net sales increase of 673 per cent for Q1 2018.

Bringing in $72 million revenue for the period, THQ posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $25.9 million, up by 439 per cent compared to the same period last year, while earnings before tax and interest (EBIT) were up by 236 per cent to $12.2 million.

Excluding revenue and income from Koch Media, net sales were up by 64 per cent year-on-year to $15.5 million, while EBIT was up 54 per cent to $5.6 million.

"Koch Media is by far our largest acquisition to date and confirms our focus on creating value for our shareholders," said founder and CEO Lars Wingefors. "With this transaction, we took a great step forward to further build a diversified, substantial and relevant player within the growing games industry."

The year started well for THQ Nordic with the release of Kingdom Come Deliverance through Deep Silver, the publishing arm of Koch Media; it looks like the acquisition will continue to pay off with Wingefors confirming that the label will also be publishing Wasteland 3 and Bard's Tale IV.

However, THQ Nordic also confirmed that one of their tentpole releases, Metro Exodus, has been pushed back to Q1 2019, potentially in an effort to avoid going head-to-head with Rockstar's Red Dead Redemption slated for release in October 2018.

"I expect the future of our well invested pipeline of products - currently at a record 54 ongoing projects - to generate growing revenues and improved profitability," added Wingefors.

"In order to make the best possible return on our investments and to continue building IP value, I would like to restate the importance that we are patient to deliver the expected customer experience along with finding the right release window for upcoming releases.

"Meanwhile, we continue to evaluate further investments into game development projects for key IPs along with further potential acquisitions or strategic partnerships that could add considerable value for the group and its shareholders."

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Ivy Taylor: Ivy joined in 2017 having previously worked as a regional journalist, and a political campaigns manager before that. They are also one of the UK's foremost Sonic the Hedgehog apologists.
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