PCF Group S.A. and Square Enix Limited signed a new agreement on 19 June 2024 that transitions the European development of Project Gemini to a work-for-hire model.
The revised contract eliminates previous commercial terms, restricting future Project Gemini revenues to the recovery of direct costs incurred by PCF Group.
The updated financial structure will lower both unit and consolidated sales revenue, as well as the net profit attributable to the project.
The board of PCF Group expects a reduction in the overall margin earned on the production-publishing agreement due to the new cost-recovery pricing model.
The financial impact of these changes is governed by International Financial Reporting Standard 15 (IFRS 15).
This update is limited exclusively to the European development segment of Project Gemini and follows previous disclosures made on 24 November 2023 and 30 January 2024.
The purpose of the current report is to confirm the finalized plan for Project Gemini and to document the execution of a new content‑rider agreement that amends the existing production‑publishing contract between PCF Group S.A. and Square Enix Limited. The agreement, signed on 19 June 2024, establishes a work‑for‑hire development model for the European team of PCF Group and revises the commercial terms that previously governed the project.
Key findings indicate that the revised contract eliminates the prior commercial conditions, resulting in future revenues from Project Gemini covering only the direct costs incurred by PCF Group. Consequently, the updated valuation under International Financial Reporting Standard 15 will lower both the unit and consolidated sales revenue as well as the net profit attributable to the contract. The board estimates a reduction in the margin earned on the entire production‑publishing agreement, reflecting the new cost‑recovery pricing structure.
The scope of the update is limited to the European development segment of Project Gemini, with the legal basis anchored in Article 17(1) of the MAR Regulation. The report references earlier updates issued on 24 November 2023 (Report 58/2023) and 30 January 2024 (Report 2/2024), and clarifies that further content‑rider disclosures will be made only when legally required. No additional methodological details are required, as the information derives from internal contractual negotiations and financial reporting standards.
