Don't Nod 2024 Half-Year Results

Key insights

6 takeaways

01
DON'T NOD reported a consolidated net loss of €42.4 million for H1 2024, a significant decline from the €0.9 million loss recorded in H1 2023.See it on page 2
02
The company recorded €40 million in non-cash charges, including a €31.6 million impairment of fixed assets tied to the titles Jusant and Banishers: Ghosts of New Eden and the suspension of two development projects.See it on page 3
03
Operating revenues fell by 11% to €14.6 million during the first half of 2024, driven by a decrease in development-related income.See it on page 2
04
Cash and cash equivalents dropped from €54.8 million at the end of 2023 to €45.5 million as of June 30, 2024.See it on page 4
05
Management has initiated a reorganization project that includes a potential workforce reduction of up to 69 positions in France to restore organizational agility.See it on page 4
06
The studio is shifting its strategy to rationalize production lines and prioritize resources toward its most promising development titles through 2027 while maintaining the release of Lost Records: Bloom & Rage.See it on page 5

Summary

The 2024 half-year results for DON'T NOD reveal a significant financial downturn driven by the commercial underperformance of recent game launches in a highly competitive market. The company reported a consolidated net loss of €42.4 million for the first half of 2024, a sharp decline from the €0.9 million loss recorded in the same period of 2023. This result was heavily influenced by €40 million in non-cash charges, including a €31.6 million impairment of fixed assets related to the titles Jusant and Banishers: Ghosts of New Eden, as well as the suspension of two development projects.

Operating revenues fell by 11% to €14.6 million, reflecting a decrease in development-related income despite steady sales from the company’s back catalog. While the studio successfully reduced operating expenses and staff costs, these measures were insufficient to offset the impact of market saturation and the high costs of production. As of June 30, 2024, the company held €45.5 million in cash and cash equivalents, down from €54.8 million at the end of 2023.

In response to these financial challenges, management has initiated a reorganization project aimed at restoring organizational agility and long-term competitiveness. This project includes a potential workforce reduction affecting up to 69 positions in France, alongside plans to rationalize production lines and strengthen the editorial committee to better align with market expectations. Despite these structural changes, the studio remains committed to its upcoming release schedule, including Lost Records: Bloom & Rage, while prioritizing resources toward its most promising development titles through 2027.