FinancialNacon
HY 2021/22 Audited Consolidated Results
29 Nov 20213 pages~6 min full read
Nacon reported a significant downturn for H1 2021/22, with sales falling 15.7% to 73.0 million euros and current operating income dropping 46.3% to 8.4 million euros compared to the previous year.
The company lowered its full-year 2021/22 guidance to 150–180 million euros in sales and approximately 20 million euros in operating income following the postponement of major titles like Vampire: The Masquerade – Swansong and Blood Bowl 3.
Nacon projects a strong recovery for 2022/23, targeting sales between 250 and 300 million euros and an operating margin exceeding 20%, supported by a pipeline of over 15 game releases.
Video game revenue declined by 16.9% in H1, though the back catalogue remained a key stabilizer, accounting for nearly 60% of total game sales.
The accessories segment faced headwinds from logistical challenges in the U.S. and rising raw material and transport costs, though gross margins remained stable at 52.1%.
Nacon maintains a solid financial position with 219.0 million euros in equity and continues to expand its development capabilities, most recently through the acquisition of Ishtar Games.
Nacon’s financial results for the first half of the 2021/22 fiscal year, covering April 1 to September 30, 2021, reflect a significant downturn compared to the previous year’s exceptional performance. Sales fell by 15.7% to 73.0 million euros, while current operating income dropped 46.3% to 8.4 million euros. This decline is attributed to an unfavorable basis of comparison, as the prior year benefited from a surge in demand for video games and accessories during global lockdowns. Additionally, the accessories segment faced logistical challenges in the United States and rising costs for raw materials and transport, though gross margins remained relatively stable at 52.1%.
The video game division saw a 16.9% decrease in revenue due to lower editorial activity, though the back catalogue remained resilient, accounting for nearly 60% of game sales. To optimize long-term quality and commercial performance, several major titles, including Vampire: The Masquerade – Swansong and Blood Bowl 3, were postponed to the following fiscal year. Consequently, the company adjusted its 2021/22 full-year targets downward, now projecting sales between 150 and 180 million euros and current operating income of approximately 20 million euros.
Despite the immediate slowdown, the long-term outlook has been revised upward. For the 2022/23 fiscal year, Nacon expects sales to reach between 250 and 300 million euros with an operating margin exceeding 20%. This optimism is driven by a robust pipeline of over 15 game releases and the continued expansion of its development capabilities, highlighted by the recent acquisition of Ishtar Games. The company maintains a solid balance sheet with 219.0 million euros in equity, supported by increased investments in its games catalogue and studio infrastructure.
