Financial

Audited Consolidated Results for the Financial Year Closing on 31 March 2020

1 May 20203 pages1,357 words

Summary

Nacon’s audited consolidated financial results for the fiscal year ending March 31, 2020, reveal a period of significant growth and successful structural transition following its initial public offering. The company reported annual sales of 129.4 million euros, representing a 14.4% increase over the previous year. This growth was primarily driven by a surge in digital game sales, which accounted for 69% of total gaming revenue. Profitability metrics showed even stronger momentum, with current operating profit rising 80.3% to 22.6 million euros and net profit increasing 41.8% to 15.3 million euros. The financial data reflects Nacon’s evolution from a division of Bigben Interactive into a standalone entity. Following its March 2020 IPO, which raised 103 million euros, the company significantly strengthened its balance sheet, ending the period with 110.9 million euros in cash and a negative net debt of 42.8 million euros. This capital injection is intended to fund the "NACON 2023" plan, which focuses on studio acquisitions and the development of AA games—defined as titles with budgets between 1 and 20 million euros—to establish the company as a global leader in that segment. Looking forward, the outlook remains positive as the company anticipates sales between 140 and 150 million euros for the 2020/21 fiscal year. Management noted that while the Covid-19 pandemic disrupted some operations, it simultaneously boosted digital software sales. Strategic priorities include expanding the Games as a Service (GaaS) model, leveraging 5G for cloud gaming, and growing the premium accessories business through brands like RIG. Long-term targets for the 2022/23 financial year include reaching sales of up to 200 million euros with an operating margin exceeding 20%. To support these growth initiatives, the Board of Directors elected to reinvest all cash flows rather than issuing a dividend.

Pages

View all

Citation

Generating citation...

Similar Documents

Financial

Strong Increase in FY 2020/21 Annual Results

Nacon reports a significant increase in financial performance for the fiscal year 2020/21, ending March 31, 2021. Sales reached 177.8 million euros, representing a 37.4% increase over the previous year. This growth was primarily driven by the successful expansion into the United States market, strong demand for premium gaming accessories, and a tripling of back-catalogue software sales. Current operating income rose by 43.8% to 32.5 million euros, yielding an operating margin of 18.3%. Net profit for the period grew by 19.6% to 18.2 million euros, despite non-recurrent expenses related to bonus share plans and increased tax obligations. The financial position remains robust with operating cash flow rising 146% to 55.7 million euros, which effectively funded 56.4 million euros in capital expenditures. While cash and cash equivalents decreased slightly to 96.7 million euros following bank loan repayments and heavy investment in game development, the company maintains a high level of liquidity. To support continued growth and studio acquisitions, the Board of Directors elected to reinvest all cash flows into the business rather than issuing a dividend for the fiscal year. Looking forward, the outlook is highly optimistic due to the transition to new console generations and a strong pipeline of upcoming titles such as Blood Bowl 3 and WRC 10. Consequently, management has accelerated its long-term financial goals. The sales target for FY 2021/22 has been raised to a range of 180 to 200 million euros with a 20% operating margin. Furthermore, the FY 2022/23 sales guidance was revised upward to between 230 and 260 million euros, supported by the anticipated release of major intellectual properties including The Lord of the Rings: Gollum and Test Drive Unlimited Solar Crown.

investment france game-publishing+1

NaconMay 2021

Financial

First Half Fiscal Year 2020/21 Results

Nacon’s financial results for the first half of fiscal year 2020/21, covering the period from April 1 to September 30, 2020, demonstrate a period of significant growth and increased profitability. The company reported sales of 86.6 million euros, representing a 35.9% increase compared to the previous year. This growth was primarily driven by strong momentum in gaming accessories, specifically RIG premium headsets and official PlayStation 4 controllers, alongside a robust performance from the games back catalogue. Profitability metrics showed substantial improvement, with current operating income rising 47.3% to 15.7 million euros, achieving an 18.2% margin. Net result for the period reached 9.6 million euros, a 46.7% increase year-over-year. The company also reported a healthy cash position, generating 8.2 million euros in free cash flow after self-financing 25.9 million euros in capital expenditures. Net cash stood at 50.7 million euros at the end of September, despite ongoing investments in studio acquisitions and game development. The outlook for the remainder of the fiscal year is optimistic, leading to an upward revision of annual sales targets to between 160 million and 170 million euros. This positive forecast is supported by the transition to next-generation consoles, which Nacon intends to leverage through simultaneous cross-generation game development and new hardware releases, such as the Revolution X and Pro Compact controllers. Long-term targets for fiscal year 2022/23 remain firm, with the company aiming for sales up to 200 million euros and an operating margin exceeding 20%. These results reflect Nacon's integrated strategy of combining development studios with premium device distribution following its formation within the Bigben Group.

market-analysis investment france

NaconNov 2020

Financial

2021‑22 Annual Sales in Line with Expectations

Nacon’s audited consolidated results for the 2021-22 fiscal year, ending March 31, 2022, characterize the period as a transition year defined by strategic investments and a shifting product mix. Annual sales reached 155.9 million euros, a 12.3% decrease from the previous year. This decline was primarily driven by the Games business segment, which saw a 21.1% drop in revenue to 54.4 million euros following the decision to postpone several major titles. The Accessories segment remained more resilient, contributing 96.6 million euros despite global console shortages. Profitability metrics reflected these transitional pressures, with current operating income falling 41.6% to 19.0 million euros and net profit landing at 10.0 million euros. The gross margin rate decreased slightly to 49.9%, influenced by a higher proportion of accessory sales. However, the company successfully mitigated rising shipping and raw material costs through price increases. To fund its aggressive expansion, Nacon invested over 100 million euros in game development and studio acquisitions over a two-year period, increasing its pipeline from 33 to 46 games in development. Looking ahead to the 2022-23 fiscal year, the company anticipates a significant growth acceleration fueled by a robust publishing schedule, including titles such as The Lord of the Rings Gollum and Steelrising. Management projects annual sales to exceed 250 million euros with a current operating margin surpassing 50 million euros. While some delays persist, such as the postponement of Test Drive Unlimited Solar Crown to optimize quality, the company maintains a strong balance sheet with 228.4 million euros in equity and plans to continue its external growth strategy through further studio acquisitions.

market-analysis market-forecast france+1

NaconMay 2022

Financial

2019/20 Annual Sales Up 14.4% To 129.4 M€ In Line With Targets

Nacon reported annual sales of 129.4 million euros for the 2019/20 fiscal year, representing a 14.4% increase over the previous year. This growth was primarily driven by the software segment, where game sales rose 40.6% to 70.7 million euros. A significant shift toward digital distribution occurred during the period, with digital sales accounting for 69% of total game revenue compared to 41% in the prior year. This transition was accelerated in the fourth quarter by global lockdown measures, which saw digital game sales multiply 2.7 times over the same period in the previous year. The accessories segment experienced a 4.8% decline, totaling 52.6 million euros. This decrease was attributed to a high comparison base from major controller releases in the prior year and the closure of physical retail locations due to the health crisis. Despite a 15.5% decline in total fourth-quarter business, the company raised its current operating margin target to exceed 16%. Management noted that the higher margins associated with digital game sales effectively offset the revenue slowdown in physical accessories. Nacon maintains a strong liquidity position with 100 million euros in available cash following a successful initial public offering in March 2020. The company’s geographic footprint includes 16 subsidiaries and distribution across 100 countries. Looking forward, the organization remains confident in its 2022/23 strategic plan, targeting sales between 180 and 200 million euros. Operational stability is supported by normalized procurement from suppliers and a transition to teleworking for development teams, with no major delays anticipated for upcoming titles such as WRC9 and the expansion of the newly acquired RIG headset brand into the United States and Australia.

market-analysis investment france

NaconApr 2020

Financial

HY 2021/22 Audited Consolidated Results

Nacon’s financial results for the first half of the 2021/22 fiscal year, covering April 1 to September 30, 2021, reflect a significant downturn compared to the previous year’s exceptional performance. Sales fell by 15.7% to 73.0 million euros, while current operating income dropped 46.3% to 8.4 million euros. This decline is attributed to an unfavorable basis of comparison, as the prior year benefited from a surge in demand for video games and accessories during global lockdowns. Additionally, the accessories segment faced logistical challenges in the United States and rising costs for raw materials and transport, though gross margins remained relatively stable at 52.1%. The video game division saw a 16.9% decrease in revenue due to lower editorial activity, though the back catalogue remained resilient, accounting for nearly 60% of game sales. To optimize long-term quality and commercial performance, several major titles, including Vampire: The Masquerade – Swansong and Blood Bowl 3, were postponed to the following fiscal year. Consequently, the company adjusted its 2021/22 full-year targets downward, now projecting sales between 150 and 180 million euros and current operating income of approximately 20 million euros. Despite the immediate slowdown, the long-term outlook has been revised upward. For the 2022/23 fiscal year, Nacon expects sales to reach between 250 and 300 million euros with an operating margin exceeding 20%. This optimism is driven by a robust pipeline of over 15 game releases and the continued expansion of its development capabilities, highlighted by the recent acquisition of Ishtar Games. The company maintains a solid balance sheet with 219.0 million euros in equity, supported by increased investments in its games catalogue and studio infrastructure.

market-analysis investment france

NaconNov 2021

Financial

2022/23 Full-Year Results

NACON’s financial results for the 2022/23 fiscal year, ending March 31, 2023, reveal a period of strategic transition characterized by stable revenue and improved profitability despite a challenging macroeconomic environment. Total sales remained flat at €156.0 million, but the company achieved a significant 29.8% increase in operating income to €17.3 million. This growth in profitability was primarily driven by a shift in the product mix toward software; gaming sales surged by 66.3% to €90.5 million, while the accessories segment declined by 36.6% to €61.2 million due to global console shortages. The company’s gross margin improved substantially, rising from 49.9% to 59.1% of sales. This financial performance was supported by a growing back catalogue and the integration of new acquisitions, most notably Daedalic Entertainment. While operating expenses rose due to intensive development work and the full-year impact of recent acquisitions, EBITDA increased by 25.5% to €48.9 million. NACON maintained a solid balance sheet with €242.6 million in equity, though net debt rose to €67.3 million following €34.9 million in investment activities and the securing of new medium-term bank loans. Looking ahead to the 2023/24 period, the company anticipates strong growth driven by an aggressive release schedule of approximately 20 games, compared to 13 in the previous year. Key titles include The Lord of the Rings: Gollum and several major sports franchises. The accessories division is also expected to recover as console supply stabilizes and new products enter the market. Management remains committed to a growth-oriented strategy, electing to reinvest cash flow into development rather than issuing a dividend. The company currently manages 16 development studios and has 53 games in its production pipeline.

investment market-analysis france

NaconMay 2023

Audited Consolidated Results for the Financial Year Closing on 31 March 2020

Summary

Tags

Pages

Citation

Citation

Similar Documents

Strong Increase in FY 2020/21 Annual Results

First Half Fiscal Year 2020/21 Results

2021‑22 Annual Sales in Line with Expectations

2019/20 Annual Sales Up 14.4% To 129.4 M€ In Line With Targets

HY 2021/22 Audited Consolidated Results

2022/23 Full-Year Results