Don't Nod 2022 Annual Results: A Year Focused on Development

Key insights

6 takeaways

01
DON'T NOD is executing a multi-year release strategy featuring eight titles scheduled for launch between 2023 and 2025.See it on page 1
02
The company secured a strong financial foundation for its development pipeline through a €45.9 million capital increase in early 2023, which included investment from Tencent Holdings Limited.See it on page 3
03
Fiscal year 2022 operating revenues rose 12.5% to €30.0 million, driven by a 42% increase in capitalized production totaling €23.0 million.See it on page 2
04
The studio achieved a financial turnaround in 2022 with a consolidated net income of €2.6 million, recovering from a €3.3 million loss in 2021.See it on page 3
05
As of year-end 2022, the company maintained a solid liquidity position with €34.9 million in cash and cash equivalents.See it on page 3
06
The 2023 release slate is anchored by two primary titles: Harmony: The Fall of Reverie and the action-RPG Banishers: Ghosts of New Eden.See it on page 4

Summary

The 2022 fiscal year for DON'T NOD served as a transitional period focused on scaling production capacity and building a robust intellectual property pipeline. The studio, which operates out of France and Canada with a workforce of over 360 employees, successfully transitioned from a period of limited major releases to a phase of intensive development. This strategic shift is designed to support a multi-year release cycle spanning 2023 through 2025, featuring eight distinct titles.

Financial performance in 2022 reflected this development-heavy focus, with total operating revenues rising 12.5% to €30.0 million. This growth was primarily driven by a 42% increase in capitalized production, totaling €23.0 million, as the studio invested heavily in its upcoming portfolio. While sales revenues from the back catalog were modest at €0.9 million, the company achieved an operating EBIT of €3.1 million and a consolidated net income of €2.6 million, marking a significant recovery from the €3.3 million loss recorded in 2021.

The studio’s operational strategy emphasizes the action-RPG segment, leveraging past successes to secure future growth. To support this, the company maintained a strong financial position with €34.9 million in cash and cash equivalents at year-end. This liquidity was further bolstered by a €45.9 million capital increase in early 2023, which included a significant investment from Tencent Holdings Limited. These resources are earmarked to sustain the development of six in-house and two externally produced titles, ensuring a consistent release cadence beyond 2025. The 2023 calendar is highlighted by the releases of Harmony: The Fall of Reverie and the action-RPG Banishers: Ghosts of New Eden.