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.
See it on page 1The 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.
See it on page 2A strategic shift toward higher-margin software publishing improved the company's gross margin to 61.4%, up from 52.1% in the previous year.
See it on page 1The accessories segment experienced a 34.7% decline in revenue, attributed to a global headset market downturn and a high base effect in the United States.
See it on page 1Net debt rose to 63.6 million euros, driven by the 34.1 million euro acquisition of Daedalic Entertainment and increased inventory costs resulting from the global electronic components crisis.
See it on page 2Management expects full-year growth to be tempered by the delay of major titles into the fourth quarter, with significant acceleration anticipated in the 2023-24 fiscal year.
See it on page 2The company is currently developing a pipeline of 50 games, including The Lord of the Rings: Gollum, which is now scheduled for release in the first half of the 2023-24 fiscal year.
See it on page 2Nacon 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.
