FinancialNacon
Audited Consolidated Results for the Financial Year Closing on 31 March 2020
1 May 20203 pages~7 min full read
Nacon achieved 129.4 million euros in annual sales for the fiscal year ending March 31, 2020, a 14.4% increase driven largely by digital game sales accounting for 69% of gaming revenue.
Profitability grew significantly, with current operating profit rising 80.3% to 22.6 million euros and net profit increasing 41.8% to 15.3 million euros.
Following a 103 million euro IPO in March 2020, the company holds 110.9 million euros in cash and a negative net debt of 42.8 million euros.
The 'NACON 2023' strategic plan focuses on acquiring studios and developing AA games with budgets between 1 and 20 million euros to secure a global leadership position in that segment.
Management projects sales between 140 and 150 million euros for the 2020/21 fiscal year, with long-term targets of 200 million euros in sales and an operating margin exceeding 20% by 2022/23.
The Board of Directors has opted to reinvest all cash flows into growth initiatives—including GaaS, cloud gaming, and premium accessories—rather than issuing dividends.
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.
