THQ announces weak results, expects strong holiday sales

Publisher THQ has announced its financial figures for the September quarter, revealing a year on year decline in revenue and a drop into loss, but has given upbeat guidance for the holiday season and beyond.

The company announced revenues of $96.3 million in the three months ended September 30th, representing a decline of 23 per cent compared with last year's figures, and a profit last year was reversed to a loss of $6.4 million.

However, shares in the company were actually trading up after the announcement, since THQ actually beat its own revenue projections by over $14 million, and issued some very upbeat guidance for the next two quarters.

In the current quarter, which runs through until the end of December and encompasses the vital holiday season, the firm expects to raise revenue by 13 per cent year on year to $330 million, largely off the back of three key kids titles - The Incredibles, The SpongeBob SquarePants Movie, and Tak 2.

All of those titles are expected to sell over a million units, with over 2.5 million units of The Incredibles alone being shipped to retail worldwide, while another major title, WWE SmackDown! Vs. Raw, is also widely expected to break the million barrier - with initial shipments of some 1.5 million units.

The company also expects to see significant revenue growth in the March quarter, with revenues of some $165 million expected, representing annual growth of 34 per cent thanks to titles such as The Punisher, Full Spectrum Warrior on PS2, and MX vs. ATV Unleashed.

The firm also noted that its THQ Wireless division, which focuses on developing games for mobile phones, saw a considerable upswing in the current set of financials - with revenues up to $20 million for the quarter, three times the level that was reported last year.