DON'T NOD Reports on Activity in the First Half of 2024

Key insights

6 takeaways

01
DON'T NOD reported an 11% decline in H1 2024 operating revenues to €14.6 million, resulting in an expected operating EBITDA loss of approximately €1.0 million.See it on page 1
02
The studio recognized €40.1 million in total charges, consisting of a €31.6 million impairment of fixed assets and €8.5 million in non-recurring expenses.See it on page 2
03
Commercial underperformance of 'Jusant' and 'Banishers: Ghosts of New Eden' triggered a €24 million write-down, while the suspension of two Paris-based development projects led to an additional €7.6 million write-down.See it on page 2
04
Despite the financial downturn, the company maintains a cash position of €45.5 million as of June 2024.See it on page 1
05
The studio is pivoting its development roadmap to focus on high-potential IP, with the next major release, 'Lost Records: Bloom & Rage', scheduled for early 2025.See it on page 2
06
Future development efforts are being streamlined to prioritize two internal projects slated for release by 2027.See it on page 2

Summary

DON'T NOD, an independent French video game developer and publisher, reports a challenging financial period for the first half of 2024, characterized by commercial underperformance in a highly competitive market. Despite critical acclaim for recent titles, the studio experienced an 11% decline in total operating revenues, which fell to €14.6 million from €16.5 million in the same period of 2023. This downturn, coupled with an expected operating EBITDA loss of approximately €1.0 million, has prompted a strategic reassessment of the company’s development roadmap and asset valuation.

The financial results reflect a significant divergence between the studio's creative output and market reception. While back-catalog titles like Vampyr and the Life is Strange franchise provided some stability, the commercial returns for Jusant and Banishers: Ghosts of New Eden fell well below internal expectations. Consequently, the company is implementing a €31.6 million impairment of fixed assets and recognizing €8.5 million in non-recurring expenses. These measures include a €24 million write-down for Jusant and Banishers, alongside a €7.6 million write-down following the temporary suspension of two development projects in Paris.

To restore financial stability and focus resources on high-potential intellectual property, the studio is pivoting its strategy toward projects with broader audience appeal. Key priorities include the upcoming release of Lost Records: Bloom & Rage, scheduled for early 2025, and the advancement of two internal projects slated for release by 2027. By streamlining its portfolio and pausing non-essential development, the studio aims to optimize its cash position—projected at €45.5 million as of June 2024—while exploring further options to enhance long-term value creation and maintain its competitive standing in the global gaming industry.