Nacon projects a significant revenue increase to between €250 million and €300 million for the 2022/23 fiscal year, driven by a robust release pipeline and recent acquisitions.
Total annual sales for FY 2021/22 fell 12.3% to €155.9 million, largely due to a 21.2% decline in the publishing segment following the postponement of major titles like Vampire: The Masquerade – Swansong.
The accessories division, Nacon's primary revenue driver at €96.6 million, experienced a 6.3% annual decline attributed to global console shortages and economic headwinds.
Management expects a sharp acceleration in business activity for the upcoming year, targeting a current operating margin exceeding 20%.
The company is executing an external growth strategy through the integration of Midgar Studio and Daedalic Entertainment to strengthen its AA publishing and premium hardware capabilities.
Despite publishing delays, the company's back-catalogue business demonstrated resilience with 12.7% growth during the fourth quarter of the 2021/22 fiscal year.
Current operating income for FY 2021/22 is projected to land between €17 million and €19 million, reflecting lower-than-anticipated sales volume in the final quarter.
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.
