FinancialNacon
First Half Fiscal Year 2020/21 Results
30 Nov 20202 pages~6 min full read
Nacon reported H1 2020/21 sales of 86.6 million euros, a 35.9% increase year-over-year driven by strong gaming accessory sales and back catalogue performance.
See it on page 1Current operating income rose 47.3% to 15.7 million euros, resulting in an 18.2% operating margin for the period ending September 30, 2020.
See it on page 2Net profit grew 46.7% year-over-year to 9.6 million euros, while the company maintained a net cash position of 50.7 million euros.
See it on page 1Annual sales targets for fiscal year 2020/21 have been revised upward to a range of 160 million to 170 million euros.
See it on page 2The company is leveraging the transition to next-generation consoles through cross-generation game development and the launch of new hardware, including Revolution X and Pro Compact controllers.
See it on page 2Long-term targets for fiscal year 2022/23 remain unchanged, aiming for 200 million euros in sales and an operating margin exceeding 20%.
See it on page 2Nacon’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.
