In This Article:
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Thunderful Group AB (FRA:8JH) has successfully restructured its business, focusing on becoming a games publisher and service provider, which has decreased its upfront risk profile.
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The company maintained transactional sales at 45 million, the same as Q4 last year, despite not having any major new releases, showcasing the strength of its portfolio.
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Thunderful Group AB (FRA:8JH) has a promising publishing slate for 2025, with seven main releases planned, expected to drive positive cash flow and long-term sustainability.
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The company has improved its back catalog management, contributing to stable sales performance.
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Thunderful Group AB (FRA:8JH) has a net cash position of 30 million SEK at the end of Q4, indicating improved liquidity.
Negative Points
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Net revenue decreased by 25-30% in both segments for Q4, with a significant drop in co-development services.
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The company's EBIT was heavily affected by substantial write-downs of capitalized development costs and acquisition-related values.
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The restructuring program led to the closure and divestment of several internal development studios, impacting headcount and operations.
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Thunderful Group AB (FRA:8JH) experienced fewer game pass and platform deals in 2024 compared to previous years, affecting revenue streams.
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The divestment of Jump Ship was necessary due to the substantial investment required for its game development, indicating challenges in resource allocation.
Q & A Highlights
Q: Can you provide more details on what drove the sales growth in the publishing segment despite no significant releases? A: The growth was primarily due to improved management of our back catalog and some positive currency exchange effects. Our focus on managing our back catalog and sales has been a key driver. - Martin Wolfish, CEO
Q: Are there any specific titles in the back catalog that contributed significantly to this growth? A: The growth was balanced across the back catalog, so no specific titles are highlighted. - Martin Wolfish, CEO
Q: How is the competition for finding new external projects, and how does it affect your strategy? A: While competition is always present, there are numerous exciting games available. We are carefully evaluating potential projects to decide on investments. - Martin Wolfish, CEO
Q: With several titles expected in the first half of 2025, can we expect any releases in Q1? A: Out of the seven main releases, three are in the first half of the year, with likely one release in Q1 and the others in Q2. - Martin Wolfish, CEO