Universal Registration Document 2022/23: Including the Annual Financial Report

Nacon’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.