Thunderful has labeled 2024 as "a transitional year" following a 14.5% year-over-year decline in net revenue
Thunderful has announced the completion of its shift to a dedicated video game company by releasing its second-quarter financial report for 2024 and analyzing its performance so far for the year.
The early months of 2024 were described by Thunderful Group as a period characterized by significant changes as it transitioned into a company solely focused on video game publishing and development. With its distribution operations divested, the board decided to retract its existing financial targets.
Thunderful reported no major incidents following the quarter's conclusion.
Key financial results were as follows:
Financial Performance
For the quarter concluding on June 30, 2024:
- Net revenue reached 83.1 million SEK, a decline of 14.5% from the previous year.
- Gross profit amounted to 66 million SEK, a decrease of 31.1% from the previous year.
- Gross margin was recorded at 79.4%, compared to 98.5% in the same quarter of 2023.
From January to June 2024:
- Net revenue stood at 141.1 million SEK, reflecting a 27.4% decline from the previous year.
- Gross profit was 107.1 million SEK, marking a 40.4% drop from the prior year.
- Gross margin was 75.9%, compared to 92.5% for the same period in 2023.
Strategic Developments
During the initial half of 2024, Thunderful divested several entities, including HeadUp, Nordic Game Supply (NGS), Bergsala, and Amo Toys. This led to the introduction of "two new business segments" in its financial disclosures, with comparative 2023 figures while categorizing the divested entities under discontinued operations.
According to CEO Martin Walfisz, "By the close of the second quarter of 2024, Thunderful evolved into a more focused entity dedicated exclusively to the global video game publishing and development arena."
Walfisz acknowledged significant transformations during 2024 but emphasized that "cost-management and enhancement strategies are beginning to deliver positive results."
Looking ahead, Walfisz stated, "The future prosperity of Thunderful hinges on a well-balanced commercial approach, an adept team, and refined operational procedures. Despite the ongoing challenges of this transitional year, we have renewed optimism and a keen sense of direction."
