Financial

Focus Home Interactive Annual Financial Report 2019/20

1 October 202083 pages35,861 words

Summary

Focus Home Interactive achieved record financial performance during the 2019/20 fiscal year, characterized by a 13% increase in consolidated revenue to €142.8 million and a 63% rise in net income to €13 million. This growth was underpinned by the commercial success of key titles such as World War Z, which sold over two million copies, and million-selling releases including A Plague Tale: Innocence, Greedfall, and SnowRunner. A robust back catalogue further stabilized the business, accounting for 40% of total sales. Geographically, the Americas emerged as a primary growth driver, while the revenue mix shifted decisively toward digital distribution, which rose from 66% to 82% of total turnover. The Group utilized this period of profitability to accelerate its "Enhance-Evolve-Explore" (EEE) long-term strategy. To secure greater control over intellectual property and development capacity, the company completed the €7.1 million acquisition of Deck13 Interactive and renewed strategic partnerships with Saber Interactive and DONTNOD. Financial flexibility was significantly enhanced through the procurement of €46 million in new credit facilities, intended to fund future acquisitions and IP development. Consequently, advances to development studios rose to €48 million, with future commitments to partners doubling to €78.4 million. Despite the challenges posed by the COVID-19 pandemic, the Group maintained a solid financial structure with a net cash position of approximately €19.6 million and consolidated equity of €54.7 million. Operational risks were managed through digital sales strategies that mitigated physical retail disruptions and currency hedging to address the fact that 61% of sales are denominated in US dollars. While the Group faces an ongoing European Commission antitrust investigation regarding Steam distribution, the overall fiscal health remains strong, supported by an unqualified opinion from statutory auditors and a successful transition to remote work.

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Focus Home Interactive Annual Financial Report 2019/20

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