NACON has lowered its full-year financial targets, abandoning previous goals of 250 million euros in sales and 50 million euros in operating income due to title delays and supply chain issues.
Consolidated sales for the first half of the 2022-2023 fiscal year reached 77.5 million euros, a 6.2% year-over-year increase.
The video game publishing segment grew by 72.3% to 47.0 million euros, driven by a 130% surge in new catalogue titles like Steelrising and Session Skate Sim.
The accessories division experienced a 34.7% decline in sales to 28.6 million euros, attributed to a high base effect in the U.S. and a shrinking global gaming headset market.
Major title releases, including The Lord of the Rings: Gollum, have been postponed to 2023, impacting the company's short-term financial outlook.
Future growth strategy relies on a dense release schedule for the second half of the year, featuring titles such as WRC Generations, Blood Bowl 3, and Transport Fever 2 Console Edition.
NACON reported consolidated sales of 77.5 million euros for the first half of the 2022-2023 fiscal year, representing a 6.2% increase compared to the previous year. This growth was driven primarily by a robust performance in the video game publishing segment, which saw a 72.3% increase in revenue to 47.0 million euros. Within this segment, new catalogue titles surged by 130%, supported by releases such as Steelrising and Session Skate Sim, while the back catalogue grew by 33%. These gains helped offset a significant downturn in the accessories division, where sales fell 34.7% to 28.6 million euros due to a high base effect in the United States and a general decline in the global gaming headset market.
The financial outlook for the remainder of the fiscal year is characterized by a downward revision of annual targets. While the company previously anticipated sales exceeding 250 million euros and operating income over 50 million euros, it now acknowledges these goals are unattainable. This shift is attributed to lower-than-expected catalogue sales, the postponement of major titles like The Lord of the Rings: Gollum to 2023, and ongoing supply chain tensions regarding new console hardware. Despite these challenges, NACON expects year-over-year growth in both sales and operating income compared to the prior fiscal year.
Looking ahead to the second half of the year and into the 2023-2024 period, the strategy focuses on a dense release schedule including WRC Generations, Blood Bowl 3, and Transport Fever 2 Console Edition. The company maintains a positive medium-term outlook, anticipating that the expansion of its back catalogue and a diversified publishing lineup will accelerate growth and improve operating profitability. The data covers the six-month period ending September 30, 2022, reflecting the performance of NACON’s 16 development studios and its global distribution network across 100 countries.
