THQ Suffers Losses In Q1 This Year
Not quite the start THQ would have planned. According to the report released by THQ (till June 30), net sales have touched $195.2 million mark with a net loss of $38.4 million. Last year their net sales were $149.4 million in the same quarter.
Although the sales count has been increased but the net loss also increased from $30.1 million to $38.4 million. Although it’s a disappointing start of the year for them but they are looking to overcome the loss in the remaining quarters. Brian Farrell, THQ’s President and Chief Executive Officer said:
We are disappointed in our first quarter financial performance. Sales of Red Faction: Armageddon and our licensed kids titles were below our expectations, and the late release of UFC Personal Trainer also adversely impacted the quarter. Despite a light first half, we are looking forward to a strong and profitable second half, including what we expect to be the biggest third quarter, both in revenue and earnings per share, in our company’s history, with proven franchises Saints Row, WWE and the uDraw GameTablet, all launching in November
Red Faction: Armageddon was a real disaster but we have high hopes for Saints Row: The Third and WWE 12‘ which may help the company to recover the loss. They however, want to stick with the so-called “four-pillar digital strategy” according to which they plan to:
- Create a digital ecosystem around key title console launches such as the November 15 release of Saints Row: The Third, with a “robust DLC schedule, online Season Pass, and in-game store for consumables”.
- Create a critical mass of users on social media platforms such as Facebook and mobile platforms including iOS and Android, using THQ-owned or branded content, such as the upcoming fall release of MargaritavilleOnline.
- Create an ongoing digital revenue stream with the launch of the company’s MMO, Warhammer 40,000: Dark Millennium Online.
- Continue to drive digital end-user sales through existing channels as well as the re-launch of THQ.com.
Good Luck to THQ for the second quarter.