Daedalic Entertainment
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Documents about Daedalic Entertainment
2022/23 Full-Year Results
NACON’s financial results for the 2022/23 fiscal year, ending March 31, 2023, reveal a period of strategic transition characterized by stable revenue and improved profitability despite a challenging macroeconomic environment.
- NACON achieved a 29.8% increase in operating income to €17.3 million for the 2022/23 fiscal year, despite total sales remaining flat at €156.0 million.
- The company’s profitability was driven by a shift in product mix, with gaming software sales surging 66.3% to €90.5 million, while accessories revenue fell 36.6% to €61.2 million due to console shortages.
- Gross margin improved significantly from 49.9% to 59.1% of sales, supported by a growing back catalogue and the integration of Daedalic Entertainment.
Universal Registration Document 2022/23: Including the Annual Financial Report
Nacon’s 2022/23 Universal Registration Document details the company’s strategic evolution into a vertically integrated developer and publisher of "AA" video games and premium gaming accessories.
- Nacon achieved €156.0 million in consolidated revenue for the 2022/23 fiscal year, balancing a 66.3% surge in video game sales against a 36.6% decline in the accessories segment.
- The company is aggressively pursuing vertical integration, having acquired 16 studios since 2019 and grown its workforce to over 1,000 employees to capture 100% of product value.
- Digital distribution now accounts for 80% of total game sales, contributing to a 25.5% increase in EBITDA to €48.9 million.
2022-23 Half-Year Results Up
Nacon reported a significant increase in profitability for the first half of the 2022-23 fiscal year, covering the period from April 1 to September 30, 2022.
- Nacon's net income surged 123.5% to 8.4 million euros for the first half of the 2022-23 fiscal year, supported by a 6.2% increase in total sales to 77.5 million euros.
- The publishing division drove financial performance with a 72.3% revenue increase to 47.0 million euros, bolstered by new titles like Steelrising and Session Skate Sim alongside a 33.3% rise in back-catalogue sales.
- A strategic shift toward higher-margin software publishing improved the company's gross margin to 61.4%, up from 52.1% in the previous year.
Interim Financial Report for the Six Months Ended 30 September 2022
NACON experienced a period of significant structural transformation during the first half of the 2022/23 fiscal year, characterized by a strategic pivot toward software publishing to offset volatility in the hardware sector.
- NACON’s net income rose 123.5% to €8.4 million during the first half of the 2022/23 fiscal year, driven by a strategic shift toward higher-margin software publishing.
- Total revenue grew 6.2% to €77.5 million, as a 72.3% surge in video game sales successfully offset a 34.7% decline in the gaming accessories market.
- The company abandoned its €250 million full-year revenue target due to supply chain constraints affecting console availability and delays in the game release schedule.
25.8% Sales Growth in Q1 2022-2023 (42.4 M€): Confirmation of FY 2022-23 Targets
Nacon achieved significant revenue growth during the first quarter of the 2022-2023 fiscal year, reporting sales of 42.4 million euros.
- Nacon reported Q1 2022-2023 revenue of 42.4 million euros, a 25.8% increase year-over-year, confirming full-year targets of over 250 million euros in sales and 50 million euros in operating income.
- The video game publishing segment grew 126.2% to 27.6 million euros, driven by new releases like 'Vampire: The Masquerade - Swansong', annual sports franchises, and a 38.7% increase in back-catalogue revenue.
- The accessories division experienced a 31.8% decline in sales to 14.0 million euros, attributed to global console shortages, inventory adjustments, and a high year-over-year comparison base.
Universal Registration Document: Including the 2021/22 Annual Financial Report
Nacon’s 2021/22 Universal Registration Document details the company’s strategic evolution into a leading "AA" video game publisher and premium accessory manufacturer.
- Nacon’s 2021/22 revenue declined 12.3% to €155.9 million, with net income falling to €9.97 million due to the postponement of four major titles and hardware supply chain constraints.
- The company is aggressively pursuing vertical integration, having acquired 16 in-house studios—including Big Ant Studios and Daedalic Entertainment—to secure its position as a premium 'AA' publisher.
- Accessories remain the company's primary revenue driver, accounting for 62% of total sales, while digital channels now represent 73% of video game revenue.
FY 2021/22, a Transition Year
Nacon’s financial performance for the 2021/22 fiscal year reflects a strategic transition period characterized by a deliberate shift in release schedules and external expansion.
- Nacon projects a significant revenue increase to between €250 million and €300 million for the 2022/23 fiscal year, driven by a robust release pipeline and recent acquisitions.
- Total annual sales for FY 2021/22 fell 12.3% to €155.9 million, largely due to a 21.2% decline in the publishing segment following the postponement of major titles like Vampire: The Masquerade – Swansong.
- The accessories division, Nacon's primary revenue driver at €96.6 million, experienced a 6.3% annual decline attributed to global console shortages and economic headwinds.