The 2018 half-year results for DONTNOD Entertainment highlight a period of significant organizational scaling and financial strengthening for the independent French video game studio. The primary objective of this period was the simultaneous production of five titles, supported by a successful initial public offering on Euronext Growth that raised €30.5 million. This capital infusion significantly bolstered the company’s balance sheet, resulting in shareholders' equity of €31.6 million and cash equivalents of €27.7 million by the end of June 2018.
Financial performance during the first half of the year reflected the intensive investment required to maintain this production pipeline. Revenues reached €4.7 million, representing a 5% increase compared to the previous year, driven by royalties from existing titles and the initial release of Vampyr. Despite this growth, the company reported a net loss of €1.03 million, a shift from the profit recorded in the first half of 2017. This result is attributed to the costs associated with structuring five production teams and the ramp-up of games under development. Operating EBITDA, including the video game tax credit, remained near breakeven at a loss of €159,000.
The studio’s operational focus remains on a long-term roadmap extending through 2022. Key milestones during the reporting period included the releases of Vampyr, The Awesome Adventures of Captain Spirit, and the first episode of Life is Strange 2. Looking forward, the company expects these titles to generate substantial revenue in the second half of 2018 and beyond. The development pipeline remains robust, with the narrative adventure game Twin Mirror scheduled for 2019 and additional confidential projects, labeled as projects 6, 7, and 8, planned for release between 2020 and 2022.
