FinancialDon't Nod

Rapport Financier Annuel 2022

2023141 pages~322 min full read

Read Cite

Key insights

7 takeaways · ~3 min read

01
DON'T NOD plans to release two new intellectual properties in 2023: "Harmony: The Fall of Reverie" in June (self-published on PC, PS5, Xbox Series X|S, Switch) and "Banishers: Ghosts of New Eden" in late 2023 (co-produced with Focus Entertainment on PC, PS5, Xbox Series X|S).See it on page 11
02
The company is actively developing five other projects (Project 9, 10, 11, M1, and 12, an Action-RPG) for release between 2023 and 2025, in addition to supporting projects from TOLIMA and TINY BULL studios.See it on page 11
03
Tencent is the largest shareholder, holding 41.9% of shares and 33.7% of voting rights as of March 31, 2023, while Kostadin YANEV and affiliates hold 21.8% of shares and 35.0% of voting rights.See it on page 45
04
DON'T NOD's capital increased from €260,694.48 to €261,170.68 on March 27, 2023, due to the issuance of 23,810 free shares to employees.See it on page 79
05
The game "Life is Strange 2" was released on Nintendo Switch on February 2, 2023, aiming to expand its audience and revitalize sales for the entire franchise.See it on page 9
06
The company's stock closed at €9.62 on December 31, 2022, with a market capitalization of €81 million, down from its first listing price of €19.76.See it on page 47
07
DON'T NOD has a Canadian subsidiary, Studios DONTNOD Inc., which is 100% owned and located in Montreal.See it on page 129

Read the full report

Summary

The 2022 Annual Financial Report details a pivotal transformation for DON’T NOD as it shifts from a traditional development studio toward an integrated publisher. The company’s primary thesis centers on long-term value creation through the retention of intellectual property rights, supported by a strategic move into self-publishing and high-growth action-RPG development. This transition is underpinned by a robust financial foundation, evidenced by a return to profitability and a significant capital injection of €45.9 million in early 2023, largely backed by key investor Tencent.

Financially, the company achieved a net profit of €2.55 million in 2022, marking a substantial recovery from the €3.26 million loss in 2021. While annual revenue from game sales saw a decline, the firm’s economic performance was bolstered by a 13% increase in economic operating products and a strong reliance on French video game tax credits (CIJV), which contributed approximately €6 million. The company maintains a solid balance sheet with €34.9 million in cash and €88.07 million in equity, allowing it to capitalize €22.7 million in development costs as it prepares for an ambitious 2023–2025 release pipeline, including titles like Banishers: Ghosts of New Eden.

Operationally, the studio has scaled its workforce by over 25% to support its expanded publishing capabilities and internal production needs. Governance and corporate social responsibility remain central to this growth, with the company implementing flexible "FROG" work policies, formalizing a new code of ethics, and conducting its first carbon footprint assessment. By balancing rigorous technical compliance and intellectual property protection with a commitment to sustainable, non-predatory game design, the company aims to mitigate the inherent risks of the gaming market while fostering long-term talent retention and operational excellence.