Embracer Group, the entity previously known as THQ Nordic AB and parent of the publisher THQ Nordic, saw net sales for its game group (which includes THQ Nordic, Deep Silver, and Coffee Stain) jump 117 percent to SEK 816 million (~$84.2 million) for the quarter ending September 30.
The Group cites the strong release of the THQ Nordic-published racing game Wreckfest as one of the driving forces behind that sizeable jump, alongside continued performance from past releases.
As a whole, Embracer Group’s consolated net sales fell 1 percent year-over-year to SEK 1.26 billion (~$130 million). Operational earnings before interest and taxes (EBIT) increased to SEK 241 million (~$24.9 million), a 133 percent growth from the same period last year.
Alongside Wreckfest’s success, Embracer Group credits its increase in profitability to the Metro franchise’s back catalog success, an increased share of digital sales, and an increased share of sales from its own IP.
Embracer Group has a total of 86 games in its development pipelines, including two triple-A titles due out next fiscal year and 49 games that have yet to be announced. As part of that, the group notes its development spending is up 47 percent this quarter to SEK 343 million (~$35.4 million).
Continuing the trend it started as THQ Nordic AB, Embracer Group acquired five game companies this quarter including Milestone, Remnant: From the Ashes dev Gunfire Games, Goodbye Kansas Game Invest, Game Outlet Europe, and KSM. However, the group notes in its reporting that its success doesn’t hinge on new acquisitions. Instead, it says such deals serve to accelerate Embracer’s growth.
“Our acquisition strategy is to add publishers, studios and IP’s to accelerate our growth and achieve further diversification, provided we find the right companies that share our values and ambitions, and of course that the terms are reasonable,” explains CEO and founder Lars Wingefors. “We acquire businesses to make them more valuable by enabling them to achieve their best work through developing more and better games, growing faster, becoming more profitable and generating more cash flow.”