Strong Earnings Growth in 2023/24

2022/23 Full-Year Results

NACON’s financial results for the 2022/23 fiscal year, ending March 31, 2023, reveal a period of strategic transition characterized by stable revenue and improved profitability despite a challenging macroeconomic environment. Total sales remained flat at €156.0 million, but the company achieved a significant 29.8% increase in operating income to €17.3 million. This growth in profitability was primarily driven by a shift in the product mix toward software; gaming sales surged by 66.3% to €90.5 million, while the accessories segment declined by 36.6% to €61.2 million due to global console shortages. The company’s gross margin improved substantially, rising from 49.9% to 59.1% of sales. This financial performance was supported by a growing back catalogue and the integration of new acquisitions, most notably Daedalic Entertainment. While operating expenses rose due to intensive development work and the full-year impact of recent acquisitions, EBITDA increased by 25.5% to €48.9 million. NACON maintained a solid balance sheet with €242.6 million in equity, though net debt rose to €67.3 million following €34.9 million in investment activities and the securing of new medium-term bank loans. Looking ahead to the 2023/24 period, the company anticipates strong growth driven by an aggressive release schedule of approximately 20 games, compared to 13 in the previous year. Key titles include The Lord of the Rings: Gollum and several major sports franchises. The accessories division is also expected to recover as console supply stabilizes and new products enter the market. Management remains committed to a growth-oriented strategy, electing to reinvest cash flow into development rather than issuing a dividend. The company currently manages 16 development studios and has 53 games in its production pipeline.