THQ’s latest fiscal report has come out, with little news that seems to change the studio’s financial direction from this past year. Net revenue shrunk to $107.4 million, down from $146 million in the same quarter of 2011. Net loss has decreased from$21.0 million, a better result year-on-year from $92.4 million, but THQ has been facing further compression at the stock market. At the time of publication, value THQ’s stocks have dropped more than 50 percent, currently trading at $1.16.
Darksiders 2 was THQ’s most recent hope of bringing in significant revenue, and although they were pleased with the Metacritic scores received, CEO Brian Farrell told investors that sales were “below expectations” and did not live up to its reception. Even with this, internal expectations still trended higher than anticipated, with Saints Row: The Third now having shipped a million copies worldwide. Digital revenue also increased to $19.1 million, a 34% year-on-year increase.
THQ announced that, due at least in part to Darksiders II‘s under performance, South Park: The Stick of Truth, Metro: Last Light and Company of Heroes 2 have all been delayed. South Park’s release date, in particular, has been changed from March 5 to a vague “early fiscal 2014.” Due to their financial quarter ending in March, the earliest the game could now be released is this coming April. Metro: Last Light and Company of Heroes 2 have also been pushed back, both to an somewhat less vague March release date.
“I firmly believe releasing our fourth quarter titles without extra time for polish in the current environment would lead to under-performance that could in turn lead to future additional capital shortfalls.” explained THQ President Jason Rubin, “But extending development schedules in order to make the best possible titles also has financial implications. Yet there can be no doubt which path has the greatest chance of leading to the long-term success of the company. We must follow the course that generates the highest quality games, and will establish THQ as a mark of quality for the consumer.”
Rubin also explained that for the 2014 fiscal year, THQ will have a focus on bringing 10 new IP onto market, rather than licensed games. Due to all of these delays, THQ looks to face further financial difficulties. In response, THQ has hired Centerview Partners LLC to find “strategic and financing alternatives” to aid in raising additional capital, and will not be discussing its financial situation until a decision has been made.
Report filed by Rakan Stanbouly