FinancialNacon
Universal Registration Document 2022/23: Including the Annual Financial Report
1 Jan 2023308 pages~705 min full read
Nacon achieved €156.0 million in consolidated revenue for the 2022/23 fiscal year, balancing a 66.3% surge in video game sales against a 36.6% decline in the accessories segment.
See it on page 216The company is aggressively pursuing vertical integration, having acquired 16 studios since 2019 and grown its workforce to over 1,000 employees to capture 100% of product value.
See it on page 57Digital distribution now accounts for 80% of total game sales, contributing to a 25.5% increase in EBITDA to €48.9 million.
See it on page 52The €32 million acquisition of Daedalic Entertainment has expanded the company's development pipeline to 53 active projects.
See it on page 75Despite a net debt increase to €67.3 million driven by R&D and acquisitions, the company maintains a manageable gearing ratio of 27.7%.
See it on page 132Operational risk management focuses on talent retention for a workforce where 32% of employees joined via recent acquisitions, utilizing studio autonomy and bonus share programs.
See it on page 22The company projects growth for the 2023/24 cycle supported by an upcoming release schedule of 20 games and an expected recovery in the hardware market.
See it on page 141Nacon’s 2022/23 Universal Registration Document details the company’s strategic evolution into a vertically integrated developer and publisher of "AA" video games and premium gaming accessories. Covering the fiscal year ending March 31, 2023, the report highlights a stable consolidated revenue of €156.0 million. A significant 66.3% surge in video game sales, driven by a doubling of back-catalogue revenue and a shift toward high-margin digital distribution (now 80% of game sales), successfully offset a 36.6% decline in the accessories segment caused by global semiconductor shortages and console stock outages.
The primary thesis centers on Nacon’s aggressive expansion of its internal development capabilities to capture 100% of product value. Since its 2019 spin-off from Bigben Interactive, the Group has acquired 16 specialized studios and grown its workforce to over 1,000 employees. A landmark achievement during this period was the €32 million acquisition of Daedalic Entertainment, which bolstered a pipeline of 53 active projects. This growth is supported by a robust financial structure, with EBITDA rising 25.5% to €48.9 million and a manageable gearing ratio of 27.7%, despite a net debt increase to €67.3 million following heavy R&D and acquisition investments.
Operational risks are characterized by high materiality regarding talent retention and potential product delays. With 32% of the workforce joining via recent acquisitions, the Group emphasizes studio autonomy and bonus share programs to mitigate turnover. Geographically, Nacon maintains a global footprint with 88.4% of revenue derived from export markets, particularly North America. Looking forward, the Group anticipates strong growth for the 2023/24 cycle, fueled by an ambitious release schedule of 20 games and the recovery of the hardware market. Governance remains centralized under Chairman and CEO Alain Falc, with a focus on reinvesting profits into content development rather than dividend distribution.
