Report

Strong Earnings Growth: 2023/24 Full-Year Results

Published by Nacon

Summary

NACON reported a robust financial year for 2023/24, with consolidated IFRS sales rising to €167.7 million from €156.0 million, a 7.5 % increase. Gross profit climbed to €104.2 million, up 13.1 %, pushing the gross margin to 62.1 % of sales. EBITDA surged by 45 % to €70.9 million, translating into a margin of 42.3 %. Operating income grew 20.5 % to €20.9 million, representing 12.5 % of sales, while net income rose 37.3 % to €17.5 million, or 10.5 % of sales. The company’s equity strengthened to €263.6 million, and net debt fell to €85.2 million, reflecting disciplined borrowing and repayment. Key drivers included a heavy new‑game release schedule of 19 titles, notably the successful Robocop: Rogue City™ which lifted catalogue sales by 21.2 % to €59.3 million. Back‑catalogue sales increased 7.4 % to €44.7 million, and accessories revenue rebounded to €62.7 million, buoyed by new hardware launches such as the RIG 600 PRO headset and REVOLUTION 5 PRO controller. Inventory levels were trimmed by €8.2 million, and operating cash flow rose 54.4 % to €73.1 million. Looking ahead, NACON plans a busy 2024/25 release calendar of around 15 games and aims to consolidate its racing‑market presence through a dedicated Racing department, the Revosim by Nacon brand, and new premium peripherals. The strategy positions NACON as a unique provider of integrated racing games and accessories worldwide, with expectations of continued sales and operating‑income growth.

From the report

Press release Lesquin, 3 June 2024, 6pm CET STRONG EARNINGS GROWTH IN 2023/24 • EBITDA: €70.9 MILLION, UP 45% • OPERATING INCOME: €20.9 MILLION, UP 20.5% • NET INCOME: €17.5 MILLION, UP 37.3% 2024/25: CONTINUING GROWTH IN BUSINESS LEVELS AND OPERATING INCOME NACON (ISIN FR0013482791) is today announcing consolidated results for its 2023/24 financial year (from 1 April 2023 to 31 March 2024) as finalised by the Board of Directors in its meeting of 3 June 2024. Consolidated IFRS figures (€ million) 2023/24 2022/23 Change Sales (non-IFRS) 170.7 156.0 +9.4% Adjustment for the partial disposal of Gollum (3.0) IFRS sales 167.7 156.0 +7.5% Gross profit 104.2 92.1 +13.1% % of sales 62.1% 59.1% Ebitda 70.9 48.9 +45.0% % of sales 42.3% 31.4% Operating income 20.9 17.3 +20.5% % of sales 12.5% 11.1% Net financial expense (4.8) (2.3) Pre-tax income 16.1 15.0 +7.0% % of sales 9.6% 9.6% Income tax 1.5 (2.2) Net income for the period 17.5 12.8 +37.3% % of sales 10.5% 8.2% Strong earnings growth in 2023/24 During the year, Catalogue sales (new games) were boosted by a heavy release schedule consisting of 19 games, including the highly successful Robocop: Rogue CityTM. Catalogue sales amounted to €59.3 million (non-IFRS), up 21.2% relative to 2022/23. The Back Catalogue (games released in previous years) performed very well, with sales rising 7.4% to €44.7 million. The Accessories business generated sales of €62.7 million and returned to growth in the second half of the year, driven by an increase in the installed base of new consoles and new product releases (the RIG 600 PRO headset and the REVOLUTION 5 PRO controller).

h sales rising 7.4% to €44.7 million. The Accessories business generated sales of €62.7 million and returned to growth in the second half of the year, driven by an increase in the installed base of new consoles and new product releases (the RIG 600 PRO headset and the REVOLUTION 5 PRO controller). Gross margin was 62.1%, an increase of 3 points year-on-year. Ebitda rose by 45% to €70.9 million, giving Ebitda margin of 42.3% as opposed to 31.4% in the previous year. Operating income rose 20.5% to €20.9 million, equal to 12.5% of sales. The increase in net financial expense was due to higher interest rates. Exchange differences remained stable (foreign exchange loss of €0.8 million, as in the previous year).

Firm financial position at a time of major development At 31 March 2024, NACON had equity of €263.6 million as opposed to €242.6 million at 31 March 2023. It also had €26.2 million of cash and cash equivalents versus €47.6 million at 31 March 2023. Net debt amounted to €85.2 million as opposed to €88.6 million at 30 September 2023. The total amount of NACON’s new borrowings during the year was much lower than the amount of borrowings it repaid. Inventory management efforts and stocking operations reduced inventories by €8.2 million year-on-year to €27.1 million. With funds from operations rising by 27.3% to €58.0 million during the year and a €17.9 million decrease in the WCR, cash flow from operating activities totalled €73.1 million as opposed to €47.4 million in 2022/23, an increase of 54.4%. Currently, 45 games are under development, and the related assets have a carrying amount of €129.5 million. Dividend: in accordance with its policy of using cash flow to fund business development, the Board of Directors decided in its 3 June 2024 meeting not to propose a dividend with respect to the 2023/24 financial year in its upcoming Shareholders’ General Meeting. 2024/25: business convergence and continuing growth in sales and operating income

g cash flow to fund business development, the Board of Directors decided in its 3 June 2024 meeting not to propose a dividend with respect to the 2023/24 financial year in its upcoming Shareholders’ General Meeting. 2024/25: business convergence and continuing growth in sales and operating income The release schedule will be busy in 2024/25, with around 15 games due to be released during the year including Test Drive Unlimited: Solar CrownTM, scheduled for 12 September 2024, Tour de France 2024, Tiebreak, Ravenswatch (of which almost 500,000 copies have already been sold via early access on PC), Rugby24 and Endurance, along with Greedfall II: The Dying World and Terminator: SurvivorsTM, which will be released via early access. The Back Catalogue will automatically benefit from the large number of games released in 2023/24, including Robocop: Rogue CityTM, which should lead to significant growth. In Accessories, NACON will continue to reap the rewards of successful product launches in 2023, including the RIG 600 PRO headset and the REVOLUTION 5 PRO controller. The main development in 2024/25 will be the Group’s initiative to bring together its games and accessories activities in the Racing market, along with its new ambitions in this area: - Creation of the dedicated NACON Racing department and the ”Revosim by Nacon” brand, building on 10 years of expertise in this market; - Launches of new premium products (Revosim steering wheel, RIG 900 headset etc.); - New licences currently being negotiated. This will make NACON the only company in the world to offer a comprehensive range of games and accessories for motor racing fans.

g on 10 years of expertise in this market; - Launches of new premium products (Revosim steering wheel, RIG 900 headset etc.); - New licences currently being negotiated. This will make NACON the only company in the world to offer a comprehensive range of games and accessories for motor racing fans. In 2024/25, because of the expected momentum in its two business areas, NACON is confident that it will continue to generate growth, accompanied by a further increase in operating income. ABOUT NACON 2023/2024 IFRS SALES: NACON is part of the Bigben group and was formed in 2019 to optimise its areas of expertise and generate €167.7million synergies between them in the video game market. Combining its 16 development studios, AA video game publishing and the design and distribution of premium gaming peripherals, NACON has 30 years of expertise in serving gamers. This new unified business gives NACON a stronger position in its market and enables it WORKFORCE to innovate by creating new and unique competitive advantages. More than 1,000 people Listed on Euronext Paris, compartment B–Index: CAC Mid&Small ISIN: FR0013482791; Reuters: NACON.PA; Bloomberg: NACON:FP). INTERNATIONAL PRESENCE 23 subsidiaries and adistribution network CONTACT: in 100 countries Cap Value–Gilles [email protected]+33 1 80 81 50 01 https://corporate.nacongaming.com/

xt Paris, compartment B–Index: CAC Mid&Small ISIN: FR0013482791; Reuters: NACON.PA; Bloomberg: NACON:FP). INTERNATIONAL PRESENCE 23 subsidiaries and adistribution network CONTACT: in 100 countries Cap Value–Gilles [email protected]+33 1 80 81 50 01 https://corporate.nacongaming.com/ GLOSSARY Back Catalogue: games released in previous years Gross profit: sales minus purchases used in the business. Ebitda: earnings before interest, tax, depreciation of property, plant and equipment and amortisation of intangible assets

Pages: 2
Words: 1,130
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

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

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

2019/20 Annual Sales Report

Nacon reported a 14.4 % increase in annual sales, reaching €129.4 million for the 2019/20 fiscal year, in line with its IPO guidance of €127–133 million. Total revenue rose from €113.1 million in 2018/19, driven largely by a 40.6 % jump in game sales to €70.7 million, while accessory revenue fell 4.8 % to €52.6 million and other categories declined 20.1 %. Digital game sales surged, accounting for 69 % of game revenue versus 41 % the previous year, a trend amplified by lockdown‑induced consumer behaviour. The fourth quarter saw a 15.5 % drop in overall sales, largely due to a product‑base effect on accessories and temporary store closures from the COVID‑19 crisis, though game sales remained robust. Operating performance improved, with a current operating margin target of 16 % raised above expectations thanks to higher digital margins. Cash reserves stood at €100 million following a successful IPO that raised €109 million in March 2020, ensuring liquidity for the upcoming fiscal year. Nacon maintains its “NACON 2023” plan, targeting €180–200 million in sales and a margin above 20 % for FY 2022/23. The company projects continued momentum in Q1 2020/21, with new game releases and expanded headset distribution through a partnership with Poly (Plantronics Inc.). Operations have largely shifted to telework, and procurement has returned to normal levels. The company’s 16 subsidiaries operate across 100 countries, supporting a workforce of nearly 450 employees.

market-analysis investment ipo+4

Nacon