NACON, a video game company, reported significant financial growth, with revenue increasing from €95.568 million in 2017/18 to €129.427 million in 2019/20, and recurring operating income rising from €3.728 million to €22.620 million over the same period.
02
NACON's gross margin improved substantially, from 41.7% in 2017/18 to 61.1% in 2019/20, indicating increased profitability per sale.
03
The company capitalised R&D costs for games, amounting to €30.1 million in 2018/19 and €32.8 million in 2019/20, and benefited from a French video game tax credit (CIJV) of €3.0 million in 2019/20 due to an increase from 20% to 30% of development expenditure.
04
NACON has a broad editorial positioning through recent studio acquisitions, including Cyanide (cycling simulations, RPGs), Kylotonn Racing and RaceWard (racing games), Eko Software (Action/RPG, Hack’n Slash, team sports), and Spiders (RPG and action games).
05
NACON focuses on digital sales due to their elimination of manufacturing and inventory costs, improved publisher margins, and increased visibility through commercial campaigns with platforms like Steam, Epic Store, PlayStation Store, Xbox Live, and Nintendo eShop.
06
The company successfully completed its IPO, issuing 19,810,931 shares, representing 23.33% of its capital and raising €109 million, with Bigben Interactive SA retaining a 76.67% stake.
07
NACON leverages extensive licensing partnerships with major brands (e.g., Sony, Microsoft, Nintendo, prestige car marques, Winchester®) for authenticity and promotional benefits in its niche games like rugby, racing, cycling, fishing, and hunting.
Insights
01
NACON, a video game company, reported significant financial growth, with revenue increasing from €95.568 million in 2017/18 to €129.427 million in 2019/20, and recurring operating income rising from €3.728 million to €22.620 million over the same period.
02
NACON's gross margin improved substantially, from 41.7% in 2017/18 to 61.1% in 2019/20, indicating increased profitability per sale.
03
The company capitalised R&D costs for games, amounting to €30.1 million in 2018/19 and €32.8 million in 2019/20, and benefited from a French video game tax credit (CIJV) of €3.0 million in 2019/20 due to an increase from 20% to 30% of development expenditure.
04
NACON has a broad editorial positioning through recent studio acquisitions, including Cyanide (cycling simulations, RPGs), Kylotonn Racing and RaceWard (racing games), Eko Software (Action/RPG, Hack’n Slash, team sports), and Spiders (RPG and action games).
05
NACON focuses on digital sales due to their elimination of manufacturing and inventory costs, improved publisher margins, and increased visibility through commercial campaigns with platforms like Steam, Epic Store, PlayStation Store, Xbox Live, and Nintendo eShop.
06
The company successfully completed its IPO, issuing 19,810,931 shares, representing 23.33% of its capital and raising €109 million, with Bigben Interactive SA retaining a 76.67% stake.
07
NACON leverages extensive licensing partnerships with major brands (e.g., Sony, Microsoft, Nintendo, prestige car marques, Winchester®) for authenticity and promotional benefits in its niche games like rugby, racing, cycling, fishing, and hunting.