FY 2021/22, a Transition Year

Nacon’s financial performance for the 2021/22 fiscal year reflects a strategic transition period characterized by a deliberate shift in release schedules and external expansion. Total annual sales reached €155.9 million, representing a 12.3% decline compared to the previous year. This downturn was primarily driven by the publishing segment, where revenue fell 21.2% to €54.4 million. The fourth quarter was particularly impacted by the postponement of major titles, such as Vampire: The Masquerade – Swansong, resulting in a 25.6% quarterly revenue drop. Despite these delays, the back-catalogue business remained resilient, growing 12.7% during the final quarter.

The accessories division, which remains the company's largest revenue contributor at €96.6 million, saw a modest 6.3% decline over the full year. This segment faced significant headwinds, including global console shortages and a challenging geopolitical and economic environment. Consequently, current operating income for the fiscal year is projected to fall between €17 million and €19 million, reflecting the lower-than-anticipated sales volume in the final quarter.

Looking forward to the 2022/23 fiscal year, the outlook remains highly optimistic with a projected sales target between €250 million and €300 million. This anticipated growth is supported by a robust pipeline of upcoming releases and the integration of newly acquired entities, including Midgar Studio and Daedalic Entertainment. Management expects a sharp acceleration in business activity and aims for a current operating margin exceeding 20%. The company continues to pursue an external growth strategy to bolster its internal development capabilities and solidify its position in the AA video game publishing and premium gaming device markets.