Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Thunderful Group AB (OSTO:THUNDR, Financial) reported a slight increase in net revenue to 62 million SEK, indicating stability despite not having major new releases.
- The restructuring programs have led to significant cost reductions, particularly in personnel costs, which decreased by 27 million SEK.
- The company signed a new publishing contract with a talented developer, Plot Twist, indicating future growth potential.
- The existing game catalog continues to perform well, providing a stable revenue backbone.
- The co-development and services segment saw an 11% growth, driven by project milestone deliveries and stable costs.
Negative Points
- Cash flow from operations was negative at minus 12 million SEK, partly due to restructuring costs.
- The liquidity position decreased significantly from 150 million SEK to 83 million SEK.
- The company is still facing challenges in achieving positive cash flow and long-term commercial sustainability.
- There were delays in some co-development projects, affecting the average billing rate and revenue.
- The game 'Rainbreaker' had a muted sales impact, aligning with limited financial expectations.
Q & A Highlights
Q: What are you most satisfied with in the publishing segment this quarter?
A: Martin Wolfishsch, CEO: Despite not having any major new releases in Q1, the stability of our existing catalog was the best performer. This stability is crucial for our business, supported by the efforts of our sales and marketing teams.
Q: Did you conduct any specific events in the quarter that boosted transactional sales?
A: Martin Wolfishsch, CEO: We didn't have any specific events this quarter, but we did various activities for games like ASCA, which helped increase revenue.
Q: How did Rainbreaker perform in terms of sales, and was it in line with expectations?
A: Martin Wolfishsch, CEO: Rainbreaker received good reviews but had a muted sales impact, which was in line with our limited financial expectations for the game.
Q: Can you provide details about the games pipeline, especially regarding the new contract with Plot Twist?
A: Martin Wolfishsch, CEO: We have an exciting pipeline for this year and are signing new titles for 2026 and beyond. The publishing contract with Plot Twist is part of this, and more details will be visible in the Q2 report.
Q: How has productivity improved since the organizational changes?
A: Martin Wolfishsch, CEO: Productivity has improved, though it's hard to quantify. The focus is on operational excellence, and improvements are ongoing, which will reflect in our commercial performance.
Q: How should we think about the co-development and services segment's growth and profitability?
A: Miguel Faulkner, CFO: The segment saw an 11% growth, and profitability improved. We aim to maintain a strong EBIT margin, but fluctuations are expected. The segment should be viewed like a consulting business with potential revenue share boosts.
Q: Is the current cash position sufficient to reach positive free cash flow?
A: Miguel Faulkner, CFO: Our goal is to reach positive cash flow without needing additional investments, but this depends on the performance of our releases this year. We constantly evaluate our cash position with the board.
Q: What impact do you hope the new creator program, Thunderful Insiders, will have?
A: Martin Wolfishsch, CEO: The program aims to engage more influencers and enhance community activity around our games, potentially improving marketing efficiency and community engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
