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Financial
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. Total sales reached 77.5 million euros, a 6.2% increase over the previous year, while net income surged by 123.5% to 8.4 million euros. This financial performance was primarily driven by the publishing division, which saw revenues grow by 72.3% to 47.0 million euros. The success of new releases such as Steelrising and Session Skate Sim, combined with a 33.3% increase in back-catalogue sales, offset a sharp 34.7% decline in the accessories segment. The shift in product mix toward higher-margin software publishing resulted in a gross margin of 61.4%, up from 52.1% in the prior year. Despite these gains, the accessories business faced headwinds due to a high base effect in the United States and a global downturn in the headset market. Furthermore, net debt increased to 63.6 million euros, reflecting the 34.1 million euro acquisition of Daedalic Entertainment and rising inventory costs linked to the global electronic components crisis. Looking ahead, the company maintains a positive outlook for the remainder of the fiscal year, though it has adjusted expectations to account for the delayed release of several major titles into the fourth quarter. Management anticipates slight year-over-year growth in sales and operating income for the full 2022-23 period. Long-term growth is expected to accelerate in the 2023-24 fiscal year, supported by a pipeline of 50 games currently in development, including the highly anticipated The Lord of the Rings: Gollum, which is now scheduled for the first half of the next fiscal year.
NaconNov 2022
Financial
First Half 2023/24 Sales
Nacon reported consolidated sales of €70.8 million for the first half of the 2023/24 financial year, covering the period from April 1 to September 30, 2023. This represents an 8.7% decline compared to the same period in the previous year. The downturn was primarily driven by a lighter release schedule in the second quarter and a high base for comparison from the prior year. Gaming sales fell 5.7% to €44.3 million, while the accessories segment saw a 12.7% decrease to €24.9 million. Despite the overall decline in the first half, the back catalogue returned to growth in the second quarter, rising 5.2% to €9.3 million. The accessories market also showed signs of recovery, particularly in the United States, supported by an expanding installed base of current-generation consoles and strong demand for gaming headsets. Management attributes the temporary dip in new game sales to the timing of releases, noting that only two titles launched at the very end of the second quarter. The outlook for the remainder of the 2023/24 fiscal year remains positive, with the company confirming its guidance for strong growth in both sales and operating income. This optimism is supported by a dense release schedule in the second half, including high-profile titles such as Robocop: Rogue City, which achieved record presales, and Cricket 24. Additionally, the launch of premium hardware, such as the Revolution 5 Pro controller and the RIG 600 PRO headset, is expected to drive significant revenue growth in the accessories division through the end of the calendar year and into the fourth quarter.
NaconJan 2023
Financial
Q3 2022/23 Sales
NACON reported consolidated sales of 118.7 million euros for the first nine months of the 2022-23 financial year, representing a 4.5% decrease compared to the previous year. This performance was characterized by a significant divergence between the company’s two primary business segments: video game publishing and hardware accessories. While the third quarter specifically saw a 19.6% decline in overall sales to 41.1 million euros, the underlying data reveals a robust expansion in software offset by a sharp contraction in the accessories market. The video games division experienced substantial growth, with nine-month sales rising 59.0% to 66.1 million euros. This surge was driven by both new releases and a strong back catalogue, which grew by 39.7%. Key contributors included titles such as WRC Generations, Steelrising, and Session Skate Sim. Conversely, the accessories segment fell by 37.8% over the nine-month period, totaling 49.0 million euros. This decline is attributed to the global shortage of new-generation consoles and cautious inventory management by distributors, which suppressed demand for peripherals. Geographically and operationally, the results cover NACON’s global distribution network across 100 countries from April 1 to December 31, 2022. Despite the hardware headwinds and the delayed release of several major titles, the company expects full-year sales and operating income to be slightly higher than the previous year. Looking ahead to the 2023-24 financial year, growth is expected to accelerate through a pipeline of approximately twenty new games, including high-profile releases like The Lord of the Rings Gollum and RoboCop: Rogue City, alongside a projected rebound in the accessories market as console supply stabilizes.
NaconJan 2023
Financial
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. This represents a 25.8% increase compared to the same period in the previous year, driven primarily by a surge in the video game publishing segment. While the company experienced a contraction in its hardware division, the overall financial performance remains aligned with long-term strategic goals, leading to the confirmation of full-year targets including sales exceeding 250 million euros and current operating income surpassing 50 million euros. The video game segment served as the primary growth engine, with sales rising 126.2% to 27.6 million euros. This performance was bolstered by successful new releases such as Vampire: The Masquerade - Swansong and annual sports franchises, alongside a 38.7% increase in back-catalogue revenue. The integration of Daedalic Entertainment and expanded platform distribution deals significantly enhanced the value of older titles. Conversely, the accessories division saw a 31.8% decline in sales to 14.0 million euros. This downturn is attributed to a high year-over-year comparison base, ongoing global console shortages, and inventory adjustments within retail distribution networks, though the company noted market share gains in the United States headset market. Looking ahead to the remainder of the fiscal year, the outlook remains positive despite the rescheduling of high-profile titles like The Lord of the Rings: Gollum to the second half of the year. The upcoming pipeline includes several key releases intended to maintain momentum. Headquartered in France and operating globally with over 900 employees, Nacon continues to leverage synergies between its 16 development studios and its premium peripheral business to solidify its position in the AA gaming market.
NaconJul 2022