Thunderful has had a “very eventful” 2024 as it seeks to “withdraw its existing financial targets”

• “The Board of Directors believes that Thunderful Group should communicate new long-term financial targets”

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First there’s the good news. As part of the release of their interim financial report January-June 2024 Thunderful have said that its “transition to a pure-play game company is complete.” 

However, in light of their change of direction the company’s board of directors have new decided to withdraw the financial targets that were originally planned and broadcasted as part of the the company’s IPO back in December 2020.

New targets, new plans

“The Board of Directors believes that Thunderful Group should communicate new long-term financial targets. Such objectives will be carefully evaluated and communicated when deemed appropriate,” reads their official statement.

Top line figures reveal that for the three months ending June 30th 2024 Thunderful’s net revenue was down 14.5% year-on-year (to 83.1 MSEK), gross profit was down 31.1% (to 66 MSEK) and gross margin was down to 79.4% (compared to 98.5% in Q2 2023).

Backing up these numbers for January-June 2024 net revnue was down 27.4% year on year (to 141.1 MSEK), gross profit was down 40.4% year-on-year (to 107.1 MSEK) and gross margin was down to 75.9% (compared to 92.5% for Jan-Jun 2023).

A change in direction

Back in February of this year Thunderful sold Thunderful 1, Thunderful Solutions, Amo Toys, and Bergsala Aktiebolag to the newly formed Bergsala NDP, a firm owned by Thunderful’s largest shareholder and board member Owe Bergste.

The move was part of the company’s larger plan to become a “pure-play games company”. This despite distribution being its largest revenue generator in 2023.

Bergsala, a Swedish distributor of Nintendo games, was one of the publisher’s most successful subsidiaries last year and the company previously merged into the Thunderful group in 2019.

Prior to that the company divested itself of Head-Up in a complex deal which saw the company being sold for 95% of its original price.

Full steam ahead

It’s an upheaval which has clearly had an impact on the company’s balance sheet but with the transition now complete Thunderful’s CEO Martin Walfisz is predicting a clear road ahead. “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,” he said.

“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.

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