Thunderful calls 2024 “a transitional year” as net revenue drops 14.5% YoY

Thunderful says its “transition to a pure-play gaming company is complete” as it releases its financial information for the second quarter of 2024 and its performance for the year so far.

Citing the start of 2024 as “very eventful” and “marked by an intense transformation into a pure-play publishing and development company,” Thunderful Group says that as it has now completed the divestment of its distribution operations, its board has concluded that it should “remove its existing financial targets.”

Thunderful did not record any significant events after the end of the quarter.

Here's what you need to know:

The numbers

For the three months ending June 30, 2024:

  • Net income: SEK 83.1 million (down 14.5% year-on-year)
  • Gross profit: SEK 66 million (down 31.1% year-on-year)
  • Gross margin: 79.4% (vs. 98.5% in Q2 2023)

For the period January-June 2024:

  • Net income: SEK 141.1 million (down 27.4% year-on-year)
  • Gross profit: SEK 107.1 million (down 40.4% year-on-year)
  • Gross margin: 75.9% (vs. 92.5% in January-June 2023)

Highlights

In the first half of 2024, Thunderful divested HeadUp, Nordic Game Supply (NGS), Bergsala and Amo Toys. Accordingly, the results for the period have been reported in “two new business segments”, with “pro forma figures for the corresponding period in 2023, while the divested companies are reported separately in discontinued operations.”

“Starting in late Q2 2024, Thunderful Group will exit its previous form and continue as a streamlined company focused exclusively on publishing and developing video games for a global market,” said CEO Martin Walfisz.

“This year is a year of transition for the group, with significant changes, but our cost-saving measures and improvement initiatives are starting to show results.

“Thunderful's future success will be the result of the right balance between a business strategy, our talented workforce and improved processes and structures,” Walfisz added.

“Although 2024 is a year of transition and we still face challenges, we are approaching them with renewed optimism and strong focus.”

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