Financial

First-Quarter 2023/24 Sales: Confirmation of 2023/24 Guidance

24 July 20232 pages556 words

Summary

NACON reported consolidated sales of €38.5 million for the first quarter of the 2023/24 financial year, representing a 9.3% decrease compared to the same period in the previous year. This performance reflects a transitional phase for the company, characterized by a stable gaming software segment and a significant decline in hardware accessories. While the gaming business remained relatively flat at €27.4 million, new game releases saw a 4.5% increase in revenue. This growth was driven by the strong performance of titles such as Ravenswatch, Tour de France, and TT Isle of Man Ride on Edge 3, which offset the underperformance of The Lord of the Rings: Gollum. The accessories division experienced a 25.5% drop in sales, falling to €10.4 million. This decline is attributed to market cycles, though management anticipates a recovery starting in the third quarter as the installed base of current-generation consoles grows and new premium peripherals are launched. Back catalogue sales also saw a slight contraction of 6.8%, totaling €11.8 million, which the company attributes to a high comparison base from the previous year’s exceptional growth. Despite the initial quarterly dip, the outlook for the remainder of the 2023/24 fiscal year remains positive. The company confirmed its annual guidance, projecting strong growth in both sales and operating income. This optimism is supported by an aggressive release schedule featuring approximately 20 new titles, including high-profile games like RoboCop: Rogue City and Gangs of Sherwood. The strategy focuses on leveraging a diverse portfolio of 16 development studios and a global distribution network to capitalize on upcoming software launches and a revitalized accessories market.

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