Thunderful Group (THUNDR) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 was 74.3 MSEK, down 10.7% year-over-year, with adjusted EBITDA at -2 MSEK and EBIT at -69 MSEK, impacted by write-downs and higher depreciations.

• Strategic restructuring in the Publishing segment to focus on third-party publishing, with redundancies of 80-100 FTEs and closure of internal studios.

• Workforce reduced to 315 employees from 365 year-over-year, a 14% decrease.

• One-off costs for restructuring estimated at 25-30 MSEK and write-downs of 220-240 MSEK, with expected annual cost savings of 80-90 MSEK.

• Nine-month revenue fell 22.4% to 215.3 MSEK; nine-month EBIT was -281.8 MSEK.

Financial highlights

• Adjusted EBITDA for Q3 2024 was -2.4 MSEK (margin -3.2%), down from 32.4 MSEK (39.0%) last year.

• EBIT for Q3 2024 was -69 MSEK (margin -92.8%), compared to 10 MSEK last year.

• Cash flow from operating activities after working capital changes was -36 MSEK, improved from -62 MSEK in Q3 2023.

• Cash and equivalents plus unused credit facilities totaled 120.4 MSEK at quarter-end; net debt stood at 23 MSEK.

• Net profit for Q3 was 7.9 MSEK, but continuing operations posted a loss of -17.7 MSEK.

Outlook and guidance

• Strategic restructuring aims for annual cost savings of 80-90 MSEK and write-downs of 220-240 MSEK.

• Announced 2025 titles remain on track for launch; release cadence of 4-5 games per year expected.

• Focus on operational improvements, cost efficiency, and positive cash flow.

• Increased investments in external publishing rights planned at 30-40 MSEK.

• New long-term financial targets to be communicated after distribution divestment.