Financial · July 30, 2024

First-Quarter 2024/25 Sales: €32.3 Million Confirmation of Full-Year 2024/25 Growth Targets

Published by Nacon

Summary

Nacon reported consolidated sales of €32.3 million for the first quarter of the 2024/25 financial year, covering the period from April to June 2024. This represents a 9.0% decrease compared to the same period in the previous year, primarily driven by a high base of comparison in the gaming segment. While overall gaming sales fell 27.1% to €17.8 million due to a lighter release schedule for new titles, the company saw significant growth in other areas. Back-catalogue sales rose 17.9% to €14.0 million, bolstered by the continued performance of titles like Robocop: Rogue City, while the accessories division grew 27.5% to €13.3 million, fueled by strong demand for premium controllers and headsets in the United States and Australia. The strategic outlook remains optimistic as the company expects to resume growth in the second quarter. This confidence is supported by a robust release pipeline featuring approximately 15 games for the full year, including high-profile titles such as Test Drive Unlimited: Solar Crown, which has already set internal records for pre-orders. Additionally, the accessories segment is expected to benefit from the launch of the new REVOSIM brand, positioning the company as a comprehensive provider of both software and hardware for the motor racing market. Despite the initial quarterly dip in revenue, management has confirmed its full-year targets for growth and increased operating income. The company’s financial position was further strengthened by a successful capital increase in July 2024, providing additional resources to develop its gaming pipeline. With 16 development studios and a distribution network spanning 100 countries, the group aims to leverage synergies between its AA publishing activities and its premium peripheral business to maintain its competitive advantage in the global video game market.

From the report

Press release Lesquin, 30 July 2024, 6 p.m. CEST FIRST-QUARTER 2024/25 SALES: €32.3 MILLION CONFIRMATION OF FULL-YEAR 2024/25 GROWTH TARGETS NACON (ISIN FR0013482791) today publishes its consolidated sales for the first quarter of its 2024/25 financial year (period from 1 April 2024 to 31 March 2025). IFRS – € MILLION 2024/25 2023/24(1) Change Sales (unaudited) First quarter (April-June) 32.3 35.5 -9.0% Gaming 17.8 24.4 -27.1% of which: Catalogue 3.8 12.6 -69.4% Back Catalogue 14.0 11.8 +17.9% Accessories 13.3 10.4 +27.5% Other(2) 1.1 0.6 +93.0% (1) Adjusted by €3 million for the partial disposal of Gollum. (2) Mobile and Audio sales Strong momentum in the Back Catalogue and Accessories businesses

5% Other(2) 1.1 0.6 +93.0% (1) Adjusted by €3 million for the partial disposal of Gollum. (2) Mobile and Audio sales Strong momentum in the Back Catalogue and Accessories businesses Gaming sales totalled €17.8 million in the first quarter of 2024/25. Catalogue sales (new games) amounted to €3.8 million. Those figures reflect the impact of the following factors: - A high base for comparison, since the first quarter of 2023/24 saw the release of The Lord of the Rings GollumTM , TT Isle of Man Ride on Edge 3TM and RavenswatchTM on early access. - Some new games were released in the first quarter of 2024/25: Crown WarsTM : The Black Prince in May and Tour de France 2024TM / Pro Cycling Manager in June. The Group expects growth in the Gaming business to resume in the second quarter, with several major new games scheduled for release in September and October. Back Catalogue sales (games released in previous years) were strong again at €14.0 million. They were supported by the large number of games released in 2023/24 and particularly Robocop: Rogue CityTM and other hits such as Taxi LifeTM and Welcome to ParadizeTM .

€14.0 million. They were supported by the large number of games released in 2023/24 and particularly Robocop: Rogue CityTM and other hits such as Taxi LifeTM and Welcome to ParadizeTM . Accessories: sales of RIG 600 PRO headsets and REVOLUTION 5 PRO controllers were particularly strong in the United States and Australia. As a result, Accessories sales rose 27.5% to €13.3 million. Positive outlook for the coming months GAMING: Busy release schedule NACON will release a large number of games in the second quarter of 2024/25, including Tiebreak: Official game of the ATP and WTA on 22 August, Test Drive Unlimited: Solar CrownTM on 12 September (which has broken NACON’s previous record in terms of preorders) and Greedfall II: The Dying World on early access. The 2024/25 line-up will therefore be impressive, with around 15 games in total slated for release during the period including Terminator: SurvivorsTM and Endurance, but also Ravenswatch, which is already out on early access for PC, Rugby25, MXGP: The Official Motocross Videogame, Ambulance Life, and Hell is Us.

ACCESSORIES: The Accessories business should remain buoyant, driven by growth in the installed base of consoles and the release of innovative new products in the third quarter of the financial year. With the creation of the REVOSIM by Nacon brand and the launch of new premium products (REVOSIM steering wheel, RIG 900 headset, etc.), in a few months’ time NACON will be 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. The success of the July 2024 capital increase has strengthened NACON’s financial position and given it new resources with which to develop its Gaming pipeline. Next event: Publication of second quarter 2024/25 sales on 28 October 2024 after the market close ABOUT NACON 2023/24 IFRS SALES€167.7MILLION NACON is part of the Bigben group and was formed in 2019 to optimise itsareas of expertise and generate 2023/24 OPERATING INCOME: synergies between them in the video game market. Combining its 16 development studios, AA video game €20.9MILLION publishing and the design and distribution of premium gaming peripherals, NACON has 30 years of expertise in serving gamers.

s between them in the video game market. Combining its 16 development studios, AA video game €20.9MILLION 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 to innovate by creating new and unique competitive advantages. Listed on Euronext Paris, Compartment B–Index: CACMid&Small WORKFORCE ISIN: FR0013482791; Reuters: NACON.PA; Bloomberg: NACON:FP Over 1,000 employees CONTACT: Cap Value–Gilles [email protected]+33 (0)1 80 81 50 01 INTERNATIONAL PRESENCE 23subsidiaries and a distribution network in 100 countries https://corporate.nacongaming.com/

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Format: PDF
Type: Financial

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