FinancialNacon
Return to Growth for Q3 2021-22 (+5,2%) Confirmation of 2021/22 & 2022/23 Targets
1 Jan 20222 pages~4 min full read
Nacon returned to growth in Q3 2021-22 with 51.2 million euros in revenue, a 5.2% increase year-over-year.
See it on page 1Full-year 2021-22 targets remain unchanged, with projected sales between 150 million and 180 million euros and an operating income of approximately 20 million euros.
See it on page 2The 2022-23 fiscal year outlook projects sales between 250 million and 300 million euros and an operating margin exceeding 20%, driven by a pipeline of over 15 game releases.
See it on page 2Quarterly growth was fueled by a 3.4% increase in video games and a 7.4% increase in accessories, despite global console shortages impacting the latter.
See it on page 1Cumulative nine-month sales for 2021-22 are down 8.2% to 124.2 million euros, primarily due to difficult comparisons against pandemic-boosted periods from the previous year.
See it on page 1The postponement of 'Vampire: The Masquerade – Swansong' to the next fiscal year will cause a sharp decline in publishing revenue for the final quarter of 2021-22.
See it on page 2Growth in the current fiscal year was supported by the launch of 'Cricket 22' and the 'Revolution X Pro Controller' for Xbox.
See it on page 1Nacon reported a return to revenue growth during the third quarter of the 2021-22 fiscal year, following two consecutive quarters of decline. Sales for the period between October and December reached 51.2 million euros, representing a 5.2% increase compared to the previous year. This rebound was driven by both the video games and accessories segments, which grew by 3.4% and 7.4% respectively. Key contributors included the successful launch of Cricket 22 and the release of the Revolution X Pro Controller for Xbox. Despite this quarterly growth, cumulative nine-month sales remained down 8.2% at 124.2 million euros, largely due to high year-over-year comparisons from pandemic-related lockdowns in the prior period.
The accessories division performed strongly with 34.9 million euros in quarterly revenue, though growth was tempered by the global shortage of PlayStation 4 and next-generation consoles. In the games segment, the back catalogue remained resilient, contributing 5.5 million euros to the quarterly total. Looking toward the final quarter of the fiscal year, a sharp decline in publishing revenue is anticipated due to the postponement of the high-profile title Vampire: The Masquerade – Swansong to the following fiscal year.
Despite these short-term shifts in release schedules, financial targets for the full 2021-22 fiscal year remain unchanged, with projected sales between 150 million and 180 million euros and operating income of approximately 20 million euros. The outlook for the 2022-23 fiscal year is highly optimistic, supported by a pipeline of over 15 game releases, including major titles such as The Lord of the Rings: Gollum and Test Drive Unlimited Solar Crown. Long-term targets for 2022-23 anticipate sales between 250 million and 300 million euros with an operating margin exceeding 20%, supported by a strategy of selective acquisitions to strengthen the company’s position in the AA gaming market.
