Don't Nod Investor Presentation

Key insights

7 takeaways

01
Consolidated total operating income rose from €15,185k in 2018 to €18,017k in 2019, while royalties fell from €3,811k to €2,062k.See it on page 14
02
Consolidated net income moved from €490k in 2018 to a loss of €(86)k in 2019.See it on page 14
03
Cash and cash equivalents decreased from €24,415k at December 31, 2018 to €16,955k at December 31, 2019.See it on page 16
04
The Twin Mirror partnership with Epic Games has DONTNOD retaining intellectual property rights and receiving a minimum guaranteed portion of royalties, with a revenue breakdown of 88% for DONTNOD before third-party payments.See it on page 15
05
The Life is Strange 2 episodes were rated between 78 and 83 on Metacritic at March 31, 2020, and the publisher's cost recoupment was in progress with royalties due in 2020.See it on page 9
06
Average headcount rose to 212 from 171, which the company links to supporting ongoing production.See it on page 14
07
Operating EBIT fell from €1,890k in 2018 to €780k in 2019.See it on page 14

Summary

This is a 2020 investor presentation from Don't Nod Entertainment, a French video game studio based in Paris, covering its business model, portfolio, and financial results for 2018 and 2019 (French GAAP, consolidated figures). The company describes itself as a creator of original intellectual property with a leading position in narrative games, developing PC and console games with budgets between €10-20m. Its revenue comes from publisher fees and royalties, and it uses classic, co-production and self-publishing contracts. The presentation reports consolidated total operating income rising from €15,185k in 2018 to €18,017k in 2019, with royalties falling from €3,811k to €2,062k and fees rising from €10,520k to €11,883k. Operating EBIT fell from €1,890k to €780k, and consolidated net income moved from €490k to a loss of €(86)k. Cash and cash equivalents declined from €24,415k at December 31, 2018 to €16,955k at December 31, 2019. The company also reports a partnership with Epic Games for Twin Mirror, under which it retains intellectual property rights and receives 88% of revenue before third-party payments.