Report

2022-23 Half-Year Results

Published by Nacon

Summary

Nacon’s first‑half 2022‑23 financials show a modest revenue increase of €77.5 million, up 6.2% year‑on‑year, driven primarily by its games segment. Game sales rose 72.3% to €47 million, with current‑catalogue titles such as *Vampire: The Masquerade®‑Swansong*, *Steelrising™* and *Session Skate Sim™* more than doubling sales to €25.4 million; back‑catalogue revenue grew 33.3% to €21.6 million. Accessories sales fell 34.7% to €28.5 million, reflecting a high base effect in the U.S. and a global headset market decline. Gross margin improved to €47.6 million (61.4% of sales) from 52.1% the previous year, largely due to a lower proportion of accessory revenue (37% versus 60%). EBITDA climbed 19.8% to €25.6 million, and current operating income surged 31.4% to €11.1 million (14.3% of sales). Net profit for the period rose 123.5% to €8.4 million, more than double the €3.8 million recorded in the same period a year earlier. Cash and equity positions remain solid, with shareholders’ equity at €241.5 million and cash reserves of €38.1 million, after a strategic reinvestment in development (50 titles, >€30 million CAPEX) and the acquisition of Daedalic (€34.1 million). Net debt increased to €63.6 million due to inventory build‑up amid component shortages. Management projects a slight uptick in full‑year 2022‑23 sales and operating income, citing delayed releases of major titles such as *Blood Bowl III* and *Chef Life*. Strong growth is anticipated for 2023‑24, underpinned by the upcoming *Lord of the Rings Gollum™* launch and continued publishing activity.

From the report

Press release Lesquin,28 November 2022, 18:00hrs 2022-23 HALF-YEAR RESULTS UP • 77.5 M€ SALES (+6.2%) • 11.1 M€ CURRENT OPERATING PROFIT (+31.4%) • 8.4 M€ NET RESULT (+123.5%) 2022-23 YEAR-END RESULTS EXPECTED TO GROW • THRIVING PUBLISHING ACTIVITY IN HY2 2022-23 NACON (ISIN FR0013482791) today releases its audited consolidated results for 1st Half Year 2022-23 (from April 1, 2022 to September 30, 2022) as approved by its Board of directors on 28 November 2022. Consolidated in M€ - IFRS 09/2022 09/2021 Change Sales 77.5 73.0 +6.2% Gross margin(1) 47.6 38.0 +25.1% In % of Sales 61.4% 52.1% EBITDA(2) 25.6 21.4 +19.8% In % of Sales 33.1% 29.3% Current operating income 11.1 8.4 +31.4% In EBITA 14.,3% 11.6% % of Sales Non recurrent items (1.3) (4.0) Operating income 9.8 4.5 +119.2% In % of Sales 12.7% 6.1% Financial result 1.3 0.0 Earnings before tax 11.1 4.5 +145.2% In % of Sales 14.3% 6.2% Tax (2.6) (0.7) Net result for the period 8.4 3.8 +123.5% In % of Sales 10.9% 5.2% Business and earnings growth driven by the Games business In the first half of 2022-23, Nacon posted revenues of 77.5 M€, up 6.2%, reflecting the growth of its games business. Over the period, this business generated revenues of 47.0 M€ (+72.3%). With the launch in HY1 of several iconic games such as Vampire: The Masquerade®- Swansong, SteelrisingTM and Session Skate SimTM, current catalogue sales more than doubled to 25.4 M€. Back catalogue sales (games released in previous years) also increased by 33.3% to 21.6 M€. Over the first half of the year, Accessories sales amounted to 28.5 M€, down 34.7%.

wansong, SteelrisingTM and Session Skate SimTM, current catalogue sales more than doubled to 25.4 M€. Back catalogue sales (games released in previous years) also increased by 33.3% to 21.6 M€. Over the first half of the year, Accessories sales amounted to 28.5 M€, down 34.7%. This activity remains marked by a very high base effect, particularly in the USA, and by a sharp decline in the global market for headsets. Gross margin was 47.6 M€, or 61.4% of sales (52.1% in previous year). The product mix, with a lower relative weighting of Accessories (37% of total sales versus 60% in previous year) explains this increase in the gross margin rate. Current operating income for the first half of the year rose by 31.4% to 11.1 M€, or 14.3% of sales. Net income amounted to 8.4 M€ (10.9% of sales in HY1 2022-23), more than double the net income generated last year (3.8 M€ in HY1 2021-22).

Strong financial structure and continued investment for growth As of September 30, 2022, shareholders' equity amounted to 241.5 M€, up 13.1 M€ compared to the end of March 2022. Cash and cash equivalents amounted to 38.1 M€ compared to 82.1 M€ at the end of March 2022, in line with the Group's determination to reinvest its cash flows in the development of its activities. To date, 50 games are under development, representing CAPEX of more than 30 M€ over the first half of 2022-23. In addition, investments related to external growth transactions (acquisition of Daedalic in April 2022) amount to 34.1 M€ over the same period. Cash-flow for the first half of the year amounted to 27.5 M€, up 31% compared with the first half of 2021-22. With the acquisition of Daedalic and the increase in inventories due to the electronical components crisis, net debt stood at 63.6 M€ at September 30, 2022, compared to 10.4 M€ at March 31,2022. Confidence reaffirmed in medium-term prospects Sustained publishing activity in the second half of 2022-23 Released on November 3, WRC Generations recorded a slight increase in sales over the first three weeks compared with WRC10, which was released in the previous fiscal year. Many games in the catalogue, some of which were initially scheduled for release in the third quarter, will finally be released in the fourth quarter: • Blood Bowl®3, a game similar to American soccer, set in a fantasy world, a new installment in the successful Blood Bowl franchise. •

s fiscal year. Many games in the catalogue, some of which were initially scheduled for release in the third quarter, will finally be released in the fourth quarter: • Blood Bowl®3, a game similar to American soccer, set in a fantasy world, a new installment in the successful Blood Bowl franchise. • Chef Life, in partnership with the Michelin Guide. • Clash, in the very dynamic fighting game segment. • Transport Fever 2 Console Edition, on PlayStation®4, PlayStation®5, Xbox®One and Xbox®Series. NACON now anticipates sales and current operating income for 2022-23 to be slightly up on the previous fiscal year with the delayed release of several major games, a decline in the Accessories business and tensions in the supply of new consoles. Strong growth expected in 2023-24, driven by current investments In FY 2023-24, NACON will continue to pursue a sustained and varied publishing activity. The 2022-23 releases will feed the 2023-24 back catalogue and will mechanically accelerate growth. The highly anticipated release of The Lord of the Rings GollumTM, an emblematic character from the world of J.R.R. Tolkien from the novel The Lord of the Rings, is now scheduled for HY1 2023-24. Next event: Q2 2022-2023 sales, 23 January 2023, Press release after close of the Euronext Paris stock exchange ABOUT NACON

The Lord of the Rings GollumTM, an emblematic character from the world of J.R.R. Tolkien from the novel The Lord of the Rings, is now scheduled for HY1 2023-24. Next event: Q2 2022-2023 sales, 23 January 2023, Press release after close of the Euronext Paris stock exchange ABOUT NACON 2021-22ANNUAL SALES NACON is a company of the BIGBEN Group founded in 2019 to optimize its know-how through strong 155.9M€ synergies in the video game market. By bringing together its 16development studios, the publishing of AA video games, the design and distribution of premium gaming devices, NACON focuses 30 years of HEADCOUNT expertise at the service of players. This new unified business unit strengthens NACON's position in the Over900 employees market, enablesit to innovate by creating new unique competitive advantages. Company listed on Euronext Paris, compartment B ISIN : FR0013482791 ; Reuters : NACON.PA ; Bloomberg : NACON:FP INTERNATIONAL 23subsidiaries and a distribution network PRESS CONTACT across 100 countries Cap Value–Gilles [email protected]+33 1 80 81 50 01 https://corporate.nacongaming.com/

y listed on Euronext Paris, compartment B ISIN : FR0013482791 ; Reuters : NACON.PA ; Bloomberg : NACON:FP INTERNATIONAL 23subsidiaries and a distribution network PRESS CONTACT across 100 countries Cap Value–Gilles [email protected]+33 1 80 81 50 01 https://corporate.nacongaming.com/ LEXICON BACK CATALOGUE: games released in previous years GROSS MARGIN: Sales - Cost of goods sold; other operating revenues posted between Gross Margin and EBITDA EBITDA: Current operating income before depreciation and amortization of tangible and intangible assets COI RATE: Operating income before non-recurring items as a percentage of sales CAPEX: Intangible assets excluding rights of use / rental rights capitalized in accordance with IFRS 16

Pages: 2
Words: 1,160
Format: PDF
Type: Report

Topics

View this document on Game Industry Library.

Related Documents

Legal

Third-Quarter 2025-26 Sales

Ubisoft reported a double-digit increase in net bookings for the third quarter of fiscal year 2025-26, reaching €338 million. This 12% year-on-year growth exceeded internal expectations, primarily driven by strong performance in partnerships and the Assassin’s Creed franchise. For the first nine months of the fiscal year, net bookings totaled €1.11 billion, an 18% increase compared to the previous year. This growth was largely supported by back-catalog sales, which rose 36.2% and accounted for over 93% of total net bookings during the nine-month period. Key performance drivers included the successful launch of Anno 117: Pax Romana, which outpaced its predecessor, and significant engagement growth for Avatar: Frontiers of Pandora following a major third-person perspective update. While the first-person shooter market remained crowded, Tom Clancy’s Rainbow Six Siege performed in line with expectations, showing a recovery in daily active users by early January. Overall player activity remained robust, with approximately 130 million unique active users across PC and consoles during the 2025 calendar year. The company is currently undergoing a major structural transformation into five distinct "Creative Houses" to sharpen focus and accelerate decision-making. This reorganization includes the recent completion of a €1.16 billion investment from Tencent into Vantage Studios, which manages the Assassin’s Creed, Far Cry, and Rainbow Six brands. Additionally, Ubisoft is streamlining its headquarters in France, initiating consultations to reduce headcount by 200 positions. Looking ahead, Ubisoft confirmed its full-year targets, including net bookings of approximately €1.5 billion and a non-IFRS EBIT of around -€1 billion. The fourth-quarter pipeline features the global mobile launches of Rainbow Six Mobile and The Division Resurgence. The group maintains a solid liquidity position, with cash equivalents expected between €1.25 billion and €1.35 billion by March 2026, providing the flexibility to address upcoming debt maturities.

market-analysis game-publishing investment+3

UbisoftJan 2025

Report

Sales for the First 9 Months of Fiscal Year 2025-26

NACON reported consolidated sales of €124.2 million for the first nine months of fiscal year 2025‑26, a decline of 4.4 % compared with €129.9 million in the same period last year. Total game revenue rose 1.9 % to €25.9 million, driven by a 39.9 % increase in catalogue sales (€13.7 million) from new titles such as *Hell is Us*, *Cricket 26* and *Rennsport*. Back‑catalogue sales fell 21.8 % to €12.2 million, largely due to a high base and market contraction. Accessories revenue dropped 29.1 % to €17.9 million, with the United States market still impacted by customs duties; the decline eased from 66 % in Q2 to 38 % in Q3. Other mobile and audio sales grew modestly by 4.6 %. Quarterly performance varied: Q1 saw a 2.9 % drop, Q2 grew 4.5 %, while Q3 declined 12.8 %. The company attributes the Q3 downturn to weaker accessories sales, despite strong catalogue momentum. NACON’s outlook for 2025‑26 remains conservative; it now expects activity comparable to the previous year, citing continued catalogue releases (e.g., *Styx: Blades of Greed*, *GreedFall The Dying World*) and anticipated accessory sales in Europe, including the Switch 2 and a new RIG R5 PRO HS headset. The company’s 16 studios, AA publishing arm, and peripheral design capabilities underpin its market position across 100 countries through 25 subsidiaries.

market-analysis game-publishing investment+2

Nacon

Report

Q3 2020/21 Sales: 48.7 M€, + 20.3%

Nacon reported Q3 2020/21 sales of €48.7 million, a 20.3 % increase over the same period in 2019/20, driven primarily by a surge in gaming accessories and back‑catalogue sales. Accessories grew 58.7 % to €32.5 million, largely due to the RIG® headset line and licensed controller sales, while back‑catalogue revenue jumped 216 % to €6.9 million, reflecting high‑margin older titles. Game sales fell 19.7 % to €13.8 million, with only two new releases (Monster Truck® and Handball 21) and a digital sales share of 74.4 %. Other revenue, mainly mobile and audio, declined 16.3 % to €2.3 million. Cumulative sales for the first nine months rose 29.9 % to €135.3 million, with accessories contributing a 90.5 % increase and back‑catalogue sales up 24.9 million versus €7.5 million in the prior year. The company projects Q4 growth, citing upcoming releases such as Werewolf® : The Apocalypse – Earthblood and new console versions of Monster Truck®, Tennis World Tour 2, and Hunting Simulator 2. Digital sales, back‑catalogue momentum, and a robust order book for RIG® headphones are expected to sustain the upward trajectory. Nacon confirms its annual target of €160–170 million in sales with an 18 % operating margin, and it has announced the acquisition of Australian studio Big Ant to strengthen its sports‑game portfolio. No dividend will be paid in 2020/21, as funds are earmarked for studio acquisitions and development. The company maintains a 2023 plan targeting €180–200 million in sales with an operating margin above 20 % for 2022/23.

market-analysis game-publishing investment+2

Nacon

Report

Q4 2022-23 Sales and Annual Sales: FY 2022-23

NACON reported consolidated sales for the fiscal year 1 April 2022 to 31 March 2023, with total revenue of €156.4 million, a marginal increase of 0.3 % over the prior year. Quarterly performance showed a strong rebound in Q4, where sales rose 19.1 % to €37.7 million after a 19.6 % decline in Q3. The Games segment dominated the growth, increasing by 67.0 % to €90.9 million for the full year; new‑catalogue sales surged 93.0 % to €24.9 million, driven by releases such as *Chef Life* and *Transport Fever 2 Console Edition*. Back‑catalogue sales also expanded, reaching an all‑time high of €11.2 million in Q4 and growing 61.2 % year‑over‑year. Accessories revenue fell 36.6 % to €61.2 million, largely due to a global console shortage that dampened demand for new‑generation hardware; however, the decline slowed in Q4, suggesting a potential rebound. Other categories, including mobile and audio sales, contracted 13.1 % to €4.3 million. The company anticipates a decline in operating income before IFRS2 for FY 2023‑24 but expects overall operating and net income to rise. Management projects a robust publishing pipeline with roughly twenty titles slated for release, including high‑profile games such as *The Lord of the Rings: Gollum* and *RoboCop: Rogue City*. The back‑catalogue is expected to continue benefiting from the mechanical effect of new releases, while accessories sales should recover as console supply normalizes and new product offerings expand. NACON’s outlook remains positive, underscoring confidence in continued growth across its video‑game and accessories businesses.

market-analysis game-publishing investment+2

Nacon