Financial

First Half 2023/24 Results

27 November 20232 pages939 words

Summary

Nacon’s financial results for the first half of the 2023/24 fiscal year, covering the period from April 1 to September 30, 2023, reflect a transitional phase characterized by a back-weighted release schedule. Total IFRS sales reached €67.8 million, a decline from €77.5 million in the previous year. This decrease was primarily driven by a 9% drop in new game sales due to a limited release calendar during the first six months. Despite lower top-line revenue, the company achieved a significant improvement in margin rates, with EBITDA rising 20.1% to €29.3 million and the EBITDA margin expanding from 31.4% to 43.2%. The publishing segment saw resilient back-catalogue performance, contributing €21.2 million, while the accessories division generated €24.9 million. Accessories experienced a late-period surge attributed to the expanding installed base of current-generation consoles. However, operating income fell 62.7% to €3.7 million, largely due to a substantial increase in depreciation and amortization charges related to non-current assets, which rose to €25.6 million. Net income for the period was €3.2 million, impacted by higher interest rates and unfavorable foreign exchange fluctuations. Management maintains a positive outlook for the full fiscal year, anticipating strong growth in both sales and operating income. This optimism is supported by a robust second-half pipeline featuring over ten new titles, including the successful launch of RoboCop: Rogue City and the upcoming Test Drive Unlimited: Solar Crown. With 50 games currently in development and a carrying value of €118.1 million in related assets, the company is leveraging its 16 internal studios and new premium peripherals, such as the Revolution 5 Pro controller, to drive performance through the remainder of the year.

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First Half 2023/24 Results

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