Don't Nod 2020 H1 Results: Investor Presentation

Key insights

7 takeaways

01
Consolidated net income rose 64% to €667k in the first half of 2020, while revenues fell to €6,993k from €7,810k.See it on page 12
02
Capitalized production rose to €3,825k from €1,214k, reflecting the ramp-up of games under development.See it on page 12
03
Cash and cash equivalents reached €20,002k at June 30, 2020, up from €16,955k at December 31, 2019.See it on page 13
04
Borrowings increased to €4,488k at June 30, 2020, including a €3,570k state-guaranteed loan.See it on page 13
05
Operating EBITDA fell to €1,739k from €2,323k, with the company citing a 27.4% increase in staff costs to support six ongoing productions.See it on page 12
06
Tell Me Why and Twin Mirror were delivered as scheduled despite the COVID-19 health crisis, and the company rolled out work-from-home arrangements.See it on page 16
07
Shareholders' equity was strengthened by €6.7m after the period end, in July 2020.See it on page 13

Summary

Dontnod Entertainment, a video game studio, presented its 2020 first-half results on September 29, 2020. The studio creates original intellectual property, develops PC and console games with budgets of €10-20m, and earns income from publisher fees and royalties, using classic, co-production and self-publishing contracts. It opened a Montreal location for a new narrative IP, and it set up Marketing and Publishing departments to publish more of its own games.

For the six months to June 30, 2020, consolidated net income rose to €667k from €406k, up 64%, while revenues fell to €6,993k from €7,810k. Capitalized production increased to €3,825k from €1,214k, and operating EBITDA declined to €1,739k from €2,323k. Cash and cash equivalents reached €20,002k at June 30, 2020, compared with €16,955k at December 31, 2019, and borrowings rose to €4,488k, including a €3,570k state-guaranteed loan.

The company reported that Tell Me Why and Twin Mirror were delivered as scheduled during the COVID-19 health crisis. Tell Me Why was released on Xbox in August and September 2020 in three chapters, and Twin Mirror was scheduled for release on December 1, 2020. Post-closing, shareholders' equity was strengthened by €6.7m in July 2020.