ReportNacon
HY 1 2021/22 Consolidated Results: Impacted by an Unfavourable Basis Comparison
3 pages~6 min full read
Nacon reported a 15.7% decline in HY 2021/22 sales to €73.0 million, with net profit contracting 60.4% to €3.8 million compared to the previous year.
See it on page 2The company lowered its 2021/22 financial targets, now projecting sales of €150–180 million and current operating income near €20 million.
See it on page 1Performance was impacted by a 16.9% drop in video-game sales to €27.3 million and a 15.1% decline in accessory sales to €43.7 million.
See it on page 2Nacon postponed several high-profile titles to fiscal year 2022/23 to prioritize development quality, while simultaneously raising its 2022/23 sales guidance to €250–300 million.
See it on page 2The balance sheet remains stable with €219.0 million in shareholders’ equity and €62.6 million in cash reserves, despite investment outflows rising to €45.6 million.
See it on page 2Nacon expanded its studio portfolio through the acquisition of Ishtar Games, which was finalized on 25 November 2021.
See it on page 2Nacon released audited consolidated results for the first half of fiscal year 2021/22, reporting sales of €73.0 million, a 15.7 % decline from the comparable period in 2020/21. Gross margin fell to €38.0 million (52.1 % of sales) and EBITDA dropped 29.7 % to €21.4 million (29.3 % of sales). Current operating income fell 46.3 % to €8.4 million, representing 11.6 % of sales, while net profit contracted 60.4 % to €3.8 million (5.2 % of sales). The decline is attributed mainly to a weaker editorial portfolio—video‑game sales fell 16.9 % to €27.3 million—and a high comparison basis for accessory sales, which decreased 15.1 % to €43.7 million.
The balance sheet remained solid, with shareholders’ equity at €219.0 million and cash reserves of €62.6 million, reflecting recent studio acquisitions and catalogue development. Working‑capital requirements increased by €2.5 million due to inventory build‑up, while operating cash flow reached €17.7 million and investment outflows rose to €45.6 million.
In response, Nacon revised its 2021/22 targets downward (sales €150–180 million; current operating income near €20 million) and lifted 2022/23 expectations (sales €250–300 million; operating‑income rate >20 %). The company postponed several high‑profile releases to 2022/23, citing a need for additional development time to enhance quality. The acquisition of Ishtar Games was completed on 25 November 2021, expanding Nacon’s studio portfolio. The outlook highlights a strong editorial pipeline for 2022/23, with over fifteen new titles and continued growth of the back‑catalogue.
