Home Interactive H1 2018/2019 Earnings and Q3 2018/2019 Revenue Presentation

Key insights

7 takeaways

01
Focus Home Interactive achieved year-to-date revenue exceeding €100 million by December 2018, representing a 55% increase over the previous year.See it on page 1
02
Management raised the fiscal year 2019 revenue outlook to over €110 million, with long-term targets set between €130 million and €150 million by March 2022.See it on page 37
03
H1 2018/2019 revenue reached €44.3 million, a 33.3% increase year-over-year, with operating income rising to €7.0 million or 15.8% of revenue.See it on page 1
04
The company’s revenue is heavily reliant on international markets (91% of revenue) and digital platforms (65% of total sales).See it on page 12
05
Financial growth was driven by the commercial success of titles including Vampyr, Farming Simulator 19, and Insurgency: Sandstorm.See it on page 6
06
The company maintains a highly selective publishing model, greenlighting fewer than 1% of proposed projects to focus on high-potential licenses and original concepts.See it on page 2
07
Organizational restructuring and new leadership appointments in creative and business development roles were implemented to support ongoing growth objectives.See it on page 5

Summary

Focus Home Interactive’s H1 2018/2019 earnings and Q3 revenue presentation details a period of significant financial growth and operational success driven by a selective publishing model. The company focuses on high-potential licenses and original concepts, maintaining a rigorous project selection process where fewer than 1% of proposed projects are greenlit. This strategy is supported by a robust production team and extensive global marketing efforts, including digital promotions and trade show presence.

Financial performance for the first half of the 2018/2019 fiscal year reflects strong momentum, with revenue reaching €44.3 million, a 33.3% increase compared to the same period in the previous year. This growth was bolstered by the commercial success of titles such as Vampyr, which achieved global best-seller status on both retail and digital platforms, and a strong back catalog of established franchises. International markets accounted for 91% of revenue, while digital platforms contributed 65% of total sales. Operating income rose to €7.0 million, representing 15.8% of revenue, compared to 11.6% in the prior year.

The company’s positive trajectory continued into the third quarter, with year-to-date revenue exceeding €100 million by the end of December 2018, marking a 55% increase over the comparable period. This performance was driven by successful releases like Farming Simulator 19 and Insurgency: Sandstorm. Based on these results, management has raised its outlook, projecting revenue to exceed €110 million for the fiscal year ending March 2019, with long-term targets set between €130 million and €150 million by the fiscal year ending March 2022. The company also underwent organizational restructuring to support these growth objectives, including key leadership appointments in creative and business development roles.