FinancialNacon
Interim Financial Report: Six Months Ended 30 September 2024
1 Sept 202427 pages~51 min full read
NACON reported a 13.6% year-on-year revenue increase to €77.0 million for the first half of fiscal year 2024/25, driven by a 27.1% surge in back-catalogue sales and a 16.6% rise in the accessories division.
See it on page 4Net income declined 32.4% to €2.2 million due to increased operating expenses, asset impairments at Daedalic studio, and the absence of non-recurring income from the previous period.
See it on page 23The accessories division now represents 38% of total revenue, though the company remains exposed to exchange-rate risks from USD-denominated procurement.
See it on page 26The company strengthened its financial position through a €19.0 million rights issue and a reduction in debt owed to parent company Bigben Interactive, bringing total equity to €288.3 million.
See it on page 22Intangible assets reached €239.4 million, with the company adopting a five-year diminishing balance amortization method to reflect the longer digital lifespans of modern game titles.
See it on page 17Export markets continue to dominate the company's performance, accounting for 86.9% of total sales for the period ending 30 September 2024.
See it on page 16Management expects growth in operating income for the second half of the fiscal year, supported by a new release schedule and the launch of premium racing and Xbox-compatible peripherals.
See it on page 7NACON achieved a consolidated revenue of €77.0 million for the first half of the 2024/25 fiscal year ending September 30, 2024, representing a 13.6% year-on-year increase. This growth was primarily fueled by a 27.1% surge in back-catalogue sales and a 16.6% rise in the accessories division, which now accounts for 38% of total revenue. Despite the top-line expansion, net income fell 32.4% to €2.2 million, and EBITDA dipped slightly to €28.3 million. These declines were attributed to higher operating expenses, asset impairments at Daedalic studio, and the absence of non-recurring income present in the previous period.
The financial structure was significantly bolstered by a €19.0 million rights issue and a reduction in debt owed to parent company Bigben Interactive. While the group ended the period with a net cash decrease of €10.8 million, total equity rose to €288.3 million. Intangible assets, largely comprised of game development costs, reached €239.4 million, reflecting a strategic shift toward a five-year diminishing balance amortization method to account for the extended digital lifespans of modern titles. Export markets remain the primary revenue driver, contributing 86.9% of total sales, though the company faces ongoing exchange-rate risks due to USD-denominated accessory procurement.
Management maintains a positive outlook for the remainder of the fiscal year, anticipating further growth in operating income. This optimism is supported by a robust release schedule across four specialist gaming genres and the introduction of premium racing and Xbox-compatible peripherals. Recent corporate milestones, including the final earn-out payment for Big Ant Studios and the resolution of a significant intellectual property dispute with a Canadian publisher, position the company to focus on its core operational segment, NACON Gaming, throughout the second half of the year.
