FinancialNacon
2019/20 Annual Sales Up 14.4% To 129.4 M€ In Line With Targets
27 Apr 20203 pages~7 min full read
Nacon reported 129.4 million euros in annual sales for the 2019/20 fiscal year, a 14.4% increase over the previous year.
Software segment performance was the primary growth driver, with game sales rising 40.6% to 70.7 million euros.
Digital distribution became the dominant revenue stream, growing to 69% of total game revenue compared to 41% in the prior year, with Q4 digital sales multiplying 2.7 times year-over-year.
The accessories segment declined 4.8% to 52.6 million euros, impacted by a high comparison base from previous controller releases and physical retail closures.
Management raised the current operating margin target to exceed 16%, as the higher margins from digital software sales offset the revenue decline in physical accessories.
Following a March 2020 IPO, the company holds 100 million euros in available cash to support its 2022/23 strategic plan of 180 to 200 million euros in sales.
Development remains on schedule for upcoming titles like WRC9, with the company expanding the RIG headset brand into the United States and Australia.
Nacon reported annual sales of 129.4 million euros for the 2019/20 fiscal year, representing a 14.4% increase over the previous year. This growth was primarily driven by the software segment, where game sales rose 40.6% to 70.7 million euros. A significant shift toward digital distribution occurred during the period, with digital sales accounting for 69% of total game revenue compared to 41% in the prior year. This transition was accelerated in the fourth quarter by global lockdown measures, which saw digital game sales multiply 2.7 times over the same period in the previous year.
The accessories segment experienced a 4.8% decline, totaling 52.6 million euros. This decrease was attributed to a high comparison base from major controller releases in the prior year and the closure of physical retail locations due to the health crisis. Despite a 15.5% decline in total fourth-quarter business, the company raised its current operating margin target to exceed 16%. Management noted that the higher margins associated with digital game sales effectively offset the revenue slowdown in physical accessories.
Nacon maintains a strong liquidity position with 100 million euros in available cash following a successful initial public offering in March 2020. The company’s geographic footprint includes 16 subsidiaries and distribution across 100 countries. Looking forward, the organization remains confident in its 2022/23 strategic plan, targeting sales between 180 and 200 million euros. Operational stability is supported by normalized procurement from suppliers and a transition to teleworking for development teams, with no major delays anticipated for upcoming titles such as WRC9 and the expansion of the newly acquired RIG headset brand into the United States and Australia.
