THQ reduces losses to $9m in full-year turnaround
Sales up as company grows market share after positive year; nearly 4m UFC and WWE games shipped
Red Faction publisher THQ has achieved significant turnaround for the business for the full-year ended March 31, reducing losses to $9 million, down from the $431.1 million loss the previous year.
The company said that during the fiscal year it had shipped nearly 4 million units each of UFC 2009 Undisputed and WWE Smackdown Vs RAW 2010, as well as establishing Darksiders as a significant franchise in the company portfolio.
"In fiscal 2010, we achieved a successful turnaround, grew market share and exceeded our financial and operating targets," commented Brian Farrell, president of THQ. "We have streamlined our cost structure, which will provide us with increased operating leverage in our model as our business continues to grow."
"Importantly, during the fiscal year we established three major core game franchises, UFC, Darksiders and Red Faction. We are very excited about our development pipeline and how we've positioned THQ to capitalise on both traditional and digital gaming opportunities going forward."
Net sales for the full year were up 8 per cent to $899.1 million, compared to $830 million in the 2009 fiscal year. The publisher is ranked as the number four independent games publisher according to the NPD Group. Sell-through dollars for the US market grew 21 per cent and 6 per cent globally, said the company.
For the fourth quarter, net sales were $197.7 million, up 16 per cent from $170.3 million the previous year, with a net loss of $10.4 million, compared to a loss of $96.9 million in 2009.
"We plan to build on our fiscal 2010 momentum by demonstrating continued progress in fiscal 2011 and delivering accelerated growth in fiscal 2012 when we expect to launch three core games, including the third instalment of our successful Saints Row franchise," added Farrell. "I want to thank all of our dedicated employees for making our turnaround a reality and positioning THQ for continued growth in the future."
The company expects to report net sales in the region of $905 million to $920 million, or a 2-4 per cent increase in fiscal 2011.