THQ 2007 Annual Report Download - page 6

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THQ INC.PG.4
Positioned for Long-Term Growth
Over the long term, we expect our growing product pipeline
to fuel our revenue growth and to help drive higher operating
margins. The successful execution of our strategies in fi scal
2007 set the foundation for our growth through the new
hardware cycle. We achieved above-market revenue growth
and posted operating margins equal to our peak margin
achieved in the last cycle. We plan to continue to grow our
revenue at or above the market and to expand our operating
margins this cycle by executing on the following strategies:
1) Grow annual revenues from our licensed franchises
2) Sequel and extend our growing portfolio of owned
intellectual properties
3) Introduce one to three new intellectual properties
each year that have long-term franchise potential
4) Exploit new revenue opportunities such as digital
downloads, in-game advertising and wireless, and
5) Continue to expand our international business
With our extensive Studio System, broad global footprint
and diversifi ed franchise portfolio, THQ has never been
better positioned for growth. We believe we have the
right strategy and resources in place. Now, it’s all about
execution, and THQ’s team of more than 2,000 dedicated
employees around the world is focused on just that.
We look forward to continuing to post record results and
generating value for our shareholders.
Brian J. Farrell
President and Chief Executive Offi cer
Consistent with our strategy to take advantage of the
growing trends of digital content creation and distribution,
we plan to increase revenue from digital downloads and
in-game advertising in fi scal 2008. We are also excited about
the long-term opportunity for our wireless business and we
expect signifi cant year-over-year growth in our fi scal 2008
wireless publishing revenues.
Growing Product Pipeline
THQ continues to build an exciting product pipeline. In fi scal
2008, we plan to release several internally developed and
owned intellectual properties, including:
S
tuntman: Ignition,
Frontlines™: Fuel of War™, Juiced™ 2: Hot Import Nights™
and
MX vs. ATV.
For fi scal 2009, we’ve already announced the
sequel to our successful Saints Row franchise, and we have
many more exciting new original properties in development
that will be unveiled over the next several months.
We expect our three well-established multi-million unit
licensed franchises: Disney•Pixar, WWE and Nickelodeon
to continue to fuel THQ’s growth. In addition to releasing
new games based on these franchises, we expect to publish
games based on the Ultimate Fighting Championship
starting in fi scal 2009.
LONG-TERM LICENSED FRANCHISES
OWNED FRANCHISES
THREE
SIX