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

Switch to a “pure-play company” has led to a “very eventful” first half-year

Thunderful says its “transition to a pure-play game company is complete” as it publishes its financial information for Q2 2024 and its performance in the year thus far.

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

Thunderful did not note 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 revenue: 83.1 MSEK (down 14.5% year-on-year)
Gross profit: 66 MSEK (down 31.1% YoY)
Gross margin: 79.4% (compared to 98.5% in Q2 2023)

For the period, January-June 2024:

Net revenue: 141.1 MSEK (down 27.4% YoY)
Gross profit: 107.1 MSEK (down 40.4% YoY)
Gross margin: 75.9% (compared to 92.5% Jan-Jun 2023)

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

“As of the end of the second quarter of 2024, Thunderful Group has shed its previous form and will continue as a streamlined company focused solely on publishing and developing video games for a global market,” said CEO Martin Walfisz.

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

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

“Although 2024 is a transitional year and we still face challenges, we approach them with renewed optimism and a strong focus.”