Don't Nod 2022 Results Presentation

Key insights

6 takeaways

01
Don't Nod is transitioning to an integrated model that combines internal development with self-publishing to retain intellectual property rights and improve long-term profitability.See it on page 19
02
The company is scaling its production pipeline to include nine original intellectual properties, with a strategic focus on the action-RPG segment for expansion after 2025.See it on page 20
03
2022 operating revenues reached €30.0 million, representing a 12.5% year-over-year increase driven by higher capitalized production costs.See it on page 12
04
The studio achieved an operating EBIT of €3.1 million in 2022, marking a recovery from the previous year's losses.See it on page 12
05
A €45.9 million capital raise completed in February 2023 provides the necessary liquidity to fund the company's ambitious release schedule.See it on page 13
06
Key operational milestones include the 2023 releases of 'Harmony: The Fall of Reverie' and 'Banishers: Ghosts of New Eden' for PC and console markets.See it on page 17

Summary

Don’t Nod’s 2022 results presentation outlines the company’s strategic transition toward an integrated model that combines internal game development with self-publishing. The primary thesis centers on leveraging a robust pipeline of nine original intellectual properties to drive long-term growth, specifically targeting the action-RPG segment for post-2025 expansion. By retaining intellectual property rights while utilizing co-production and minimum guarantee arrangements, the company aims to secure more profitable revenue streams and ensure sustainable commercial success.

Financial performance for 2022 reflects a period of intensive development investment. Total operating revenues reached €30.0 million, a 12.5% increase over the previous year, driven largely by a significant rise in capitalized production costs as the studio ramped up work on its upcoming game lineup. The company reported an operating EBIT of €3.1 million, marking a recovery from the previous year’s losses. As of year-end 2022, the company maintained a solid balance sheet with low debt levels, further bolstered by a €45.9 million capital raise in February 2023 to support its ambitious release schedule.

The company’s operational scope is global, focusing on PC and console markets. The current strategy emphasizes a diversified portfolio, with eight games released or in active development and a total of nine original creations in the pipeline. Key milestones include the 2023 releases of Harmony: The Fall of Reverie and Banishers: Ghosts of New Eden. The company continues to prioritize its narrative-driven identity while scaling its production capabilities through talent acquisition and strategic partnerships with major industry players. This approach is supported by a commitment to corporate social responsibility, including initiatives focused on gender equality and employee training.