Don't Nod Financial Results Presentation: TP ICAP Midcap Conference

Key insights

6 takeaways

01
DONTNOD is transitioning from a traditional developer model to a self-publishing strategy to capture a larger share of the video game value chain.See it on page 26
02
The company has a pipeline of eight games in production scheduled for release between 2022 and 2025, which is expected to more than double its existing catalog.See it on page 28
03
2021 financial results showed total operating revenues of €26.7 million (a 13% increase) and operating EBITDA of €5.8 million (a 33% increase).See it on page 20
04
Despite revenue growth, the company reported a €3.3 million consolidated net loss in 2021, primarily attributed to the amortization of development costs for titles like Twin Mirror.See it on page 20
05
A €50 million capital increase in January 2021 and a 22.3% equity stake acquisition by Tencent have provided the liquidity required to fund internal production and external publishing.See it on page 14
06
The company employs over 320 staff members as of March 2022 and has formalized its ESG commitments through a dedicated committee and sustainability reporting.See it on page 17

Summary

DONTNOD Entertainment, a Paris and Montreal-based developer and publisher of narrative-driven "AA" video games, focuses on a value-creating strategy centered on intellectual property (IP) retention and the transition toward self-publishing. By shifting from a traditional developer model to one that emphasizes co-production and self-publishing, the company aims to capture a larger share of the video game value chain. This strategic evolution is supported by a robust pipeline of eight games currently in production, scheduled for release between 2022 and 2025, which is expected to more than double the company’s existing catalog.

Financial performance in 2021 reflected this transition, with total operating revenues reaching €26.7 million, a 13% increase over the previous year. Operating EBITDA grew by 33% to €5.8 million, driven by strong back-catalog performance and increased royalty income. While the company reported a consolidated net loss of €3.3 million—largely due to the amortization of development costs for titles like Twin Mirror—it maintains a healthy financial position. A €50 million capital increase in January 2021, alongside a 22.3% stake acquisition by Tencent, has provided the liquidity necessary to fund internal production lines and expand external publishing activities.

The company’s methodology relies on leveraging the global shift toward digital distribution and the growing demand for narrative-focused, immersive experiences. With a workforce of over 320 talents as of March 2022, DONTNOD emphasizes a culture of excellence and responsible corporate governance, formalizing its environmental, social, and governance (ESG) commitments through a dedicated committee and the publication of its first sustainability report. By maintaining creative independence while scaling production capacity, the company seeks to optimize the risk-reward profile of its projects, targeting significant leverage in profitability through the disintermediation of traditional publishing channels.