FinancialNacon
Strong Increase in FY 2020/21 Annual Results
31 May 20212 pages~6 min full read
Nacon achieved 177.8 million euros in sales for FY 2020/21, a 37.4% increase driven by U.S. market expansion, premium accessory demand, and a tripling of back-catalogue software sales.
See it on page 1Current operating income grew 43.8% to 32.5 million euros, resulting in an 18.3% operating margin, while net profit rose 19.6% to 18.2 million euros.
See it on page 1Management raised the FY 2021/22 sales target to 180–200 million euros with a 20% operating margin, and increased the FY 2022/23 guidance to 230–260 million euros.
See it on page 1Operating cash flow surged 146% to 55.7 million euros, enabling 56.4 million euros in capital expenditures and the decision to reinvest all cash flows rather than pay a dividend.
See it on page 2Future growth is anchored by a strong development pipeline, including major titles such as Blood Bowl 3, WRC 10, The Lord of the Rings: Gollum, and Test Drive Unlimited Solar Crown.
See it on page 2Despite a slight decrease in cash and cash equivalents to 96.7 million euros due to loan repayments and development investments, the company maintains a robust financial position and high liquidity.
See it on page 2Nacon 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.
