Today THQ Nordic released their report for the third quarter of 2018 (Q2 for financial year of 18/19). Despite that the quarter had a lower release activity THQ Nordic showed both strong sales and profits. Both the reported sales and EBIT beat our projections by a wide margin. The company has some major releases coming up with intense quarters ahead. In conjunction with the release of the report, THQ Nordic also announced two exciting acquisitions; Coffee Stain and Bugbear. The deal with the Swedish developer and publisher Coffee Stain is a significant acquisition conducted at 2.5-6.8x (depending on earn-outs) the expected earnings during the financial year 2019, clearly value-adding according to us. There is no stopping THQ Nordic with the most exciting quarters ahead in the company’s history and a continued focus on value-adding M&A the future looks bright. We expect to make some positive forecast adjustments due to the acquisition of Coffee Stain, which will also affect our valuation positively. Our current Base-case amounts to 245 SEK per share.