FinancialNacon
25.8% Sales Growth in Q1 2022-2023 (42.4 M€): Confirmation of FY 2022-23 Targets
25 Jul 20222 pages~3 min full read
Nacon reported Q1 2022-2023 revenue of 42.4 million euros, a 25.8% increase year-over-year, confirming full-year targets of over 250 million euros in sales and 50 million euros in operating income.
The video game publishing segment grew 126.2% to 27.6 million euros, driven by new releases like 'Vampire: The Masquerade - Swansong', annual sports franchises, and a 38.7% increase in back-catalogue revenue.
The accessories division experienced a 31.8% decline in sales to 14.0 million euros, attributed to global console shortages, inventory adjustments, and a high year-over-year comparison base.
The acquisition of Daedalic Entertainment and expanded platform distribution deals were key factors in maximizing the value of the company's older game titles.
Despite the rescheduling of 'The Lord of the Rings: Gollum' to the second half of the fiscal year, Nacon maintains a positive outlook supported by a pipeline of upcoming releases.
Nacon continues to operate with over 900 employees across 16 development studios, focusing on synergies between its premium peripheral business and AA game development.
Nacon achieved significant revenue growth during the first quarter of the 2022-2023 fiscal year, reporting sales of 42.4 million euros. This represents a 25.8% increase compared to the same period in the previous year, driven primarily by a surge in the video game publishing segment. While the company experienced a contraction in its hardware division, the overall financial performance remains aligned with long-term strategic goals, leading to the confirmation of full-year targets including sales exceeding 250 million euros and current operating income surpassing 50 million euros.
The video game segment served as the primary growth engine, with sales rising 126.2% to 27.6 million euros. This performance was bolstered by successful new releases such as Vampire: The Masquerade - Swansong and annual sports franchises, alongside a 38.7% increase in back-catalogue revenue. The integration of Daedalic Entertainment and expanded platform distribution deals significantly enhanced the value of older titles. Conversely, the accessories division saw a 31.8% decline in sales to 14.0 million euros. This downturn is attributed to a high year-over-year comparison base, ongoing global console shortages, and inventory adjustments within retail distribution networks, though the company noted market share gains in the United States headset market.
Looking ahead to the remainder of the fiscal year, the outlook remains positive despite the rescheduling of high-profile titles like The Lord of the Rings: Gollum to the second half of the year. The upcoming pipeline includes several key releases intended to maintain momentum. Headquartered in France and operating globally with over 900 employees, Nacon continues to leverage synergies between its 16 development studios and its premium peripheral business to solidify its position in the AA gaming market.
