Nacon

Game Co.

106 documents

French game publisher and accessory maker. Test Drive, RoboCop: Rogue City, WRC. Also Bigben gaming controllers.

Documents

Financial

First Half 2024/25 Results

Nacon’s financial results for the first half of the 2024/25 fiscal year, covering the six-month period ending September 30, 2024, reveal a period of revenue growth alongside a slight contraction in profitability. Total sales reached €77.0 million, representing a 13.6% increase compared to the previous year. This growth was driven by a 10.7% rise in gaming sales and a robust 16.6% increase in the accessories segment. Gross profit margins improved to 65.8%, primarily due to optimized purchasing strategies within the accessories division. Despite the rise in revenue, EBITDA fell by 3.2% to €28.3 million, and operating income declined by 12.9% to €3.2 million. These decreases are attributed to a high comparative base in the prior year, which had been bolstered by non-recurring income from the release of earn-out provisions. Net income for the period settled at €2.2 million. The company’s balance sheet was strengthened by an €18.6 million capital increase in July 2024, bringing total equity to €288.3 million, though net debt rose to €101.5 million as cash positions decreased to €17.4 million. The outlook for the remainder of the fiscal year remains optimistic, supported by a pipeline of 45 games currently under development. Growth is expected to be driven by the release of major titles such as Test Drive Unlimited: Solar Crown and MXGP, alongside new premium hardware including the REVOSIM steering wheel and Xbox Revolution X Unlimited controller. Management anticipates that higher volumes from year-end sales and new product launches will result in overall growth for both sales and operating income for the full 2024/25 financial year.

market-analysis france mergers-acquisitions

NaconNov 2024

Financial

Strong Sales Growth in the Second Quarter of 2024/25

Nacon achieved significant financial momentum during the second quarter of the 2024/25 fiscal year, reporting consolidated sales of €44.7 million. This represents a 38.5% increase compared to the same period in the previous year. For the full first half of the year, spanning April to September 2024, total sales reached €77.0 million, a 13.6% year-over-year improvement. This growth was primarily driven by a surge in the gaming division, which saw a 65.4% increase in quarterly revenue, bolstered by both new releases and a robust back catalogue. The publishing segment benefited from the launch of Test Drive Unlimited: Solar Crown, which ranked among the top five best-selling games in its distribution territories despite initial server stability issues. Additionally, the PC release of Ravenswatch met with a positive reception, building a community of over 600,000 active players. The back catalogue grew by 38.8%, sustained by the continued performance of titles like Robocop: Rogue City and Taxi Life. Meanwhile, the accessories division maintained steady growth of 8.7% for the quarter, led by strong demand for premium controllers and headsets in the United States and Australian markets. Looking ahead to the remainder of the 2024/25 fiscal year, the outlook remains positive with a busy release schedule across sport, racing, adventure, and simulation genres. New hardware launches, including racing peripherals and Xbox-compatible controllers, are expected to further diversify revenue streams. Based on these results, the company has confirmed its full-year growth targets and anticipates a continued increase in operating income, supported by its integrated model of game publishing and peripheral design.

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NaconOct 2024

Financial

Interim Financial Report: Six Months Ended 30 September 2024

NACON achieved a consolidated revenue of €77.0 million for the first half of the 2024/25 fiscal year ending September 30, 2024, representing a 13.6% year-on-year increase. This growth was primarily fueled by a 27.1% surge in back-catalogue sales and a 16.6% rise in the accessories division, which now accounts for 38% of total revenue. Despite the top-line expansion, net income fell 32.4% to €2.2 million, and EBITDA dipped slightly to €28.3 million. These declines were attributed to higher operating expenses, asset impairments at Daedalic studio, and the absence of non-recurring income present in the previous period. The financial structure was significantly bolstered by a €19.0 million rights issue and a reduction in debt owed to parent company Bigben Interactive. While the group ended the period with a net cash decrease of €10.8 million, total equity rose to €288.3 million. Intangible assets, largely comprised of game development costs, reached €239.4 million, reflecting a strategic shift toward a five-year diminishing balance amortization method to account for the extended digital lifespans of modern titles. Export markets remain the primary revenue driver, contributing 86.9% of total sales, though the company faces ongoing exchange-rate risks due to USD-denominated accessory procurement. Management maintains a positive outlook for the remainder of the fiscal year, anticipating further growth in operating income. This optimism is supported by a robust release schedule across four specialist gaming genres and the introduction of premium racing and Xbox-compatible peripherals. Recent corporate milestones, including the final earn-out payment for Big Ant Studios and the resolution of a significant intellectual property dispute with a Canadian publisher, position the company to focus on its core operational segment, NACON Gaming, throughout the second half of the year.

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NaconSept 2024

Financial

First-Quarter 2024/25 Sales: €32.3 Million Confirmation of Full-Year 2024/25 Growth Targets

Nacon reported consolidated sales of €32.3 million for the first quarter of the 2024/25 financial year, covering the period from April to June 2024. This represents a 9.0% decrease compared to the same period in the previous year, primarily driven by a high base of comparison in the gaming segment. While overall gaming sales fell 27.1% to €17.8 million due to a lighter release schedule for new titles, the company saw significant growth in other areas. Back-catalogue sales rose 17.9% to €14.0 million, bolstered by the continued performance of titles like Robocop: Rogue City, while the accessories division grew 27.5% to €13.3 million, fueled by strong demand for premium controllers and headsets in the United States and Australia. The strategic outlook remains optimistic as the company expects to resume growth in the second quarter. This confidence is supported by a robust release pipeline featuring approximately 15 games for the full year, including high-profile titles such as Test Drive Unlimited: Solar Crown, which has already set internal records for pre-orders. Additionally, the accessories segment is expected to benefit from the launch of the new REVOSIM brand, positioning the company as a comprehensive provider of both software and hardware for the motor racing market. Despite the initial quarterly dip in revenue, management has confirmed its full-year targets for growth and increased operating income. The company’s financial position was further strengthened by a successful capital increase in July 2024, providing additional resources to develop its gaming pipeline. With 16 development studios and a distribution network spanning 100 countries, the group aims to leverage synergies between its AA publishing activities and its premium peripheral business to maintain its competitive advantage in the global video game market.

market-analysis europe monetization

NaconJul 2024

Legal

Monthly Declaration of Transactions Realized by an Issuer on Its Own Shares: July 2024

Nacon, a prominent player in the video game publishing and peripheral industry, executed a series of share buyback transactions throughout July 2024 as part of a long-standing program initiated in March 2020. These activities were conducted in accordance with French financial market regulations and reported via the standard AMF framework. The primary objective of these transactions is the management of the company’s own equity, a common practice for stabilizing share price or fulfilling obligations related to employee share schemes and debt instruments. The data indicates a high level of liquidity management during the period, with the company purchasing 50,668 shares while simultaneously selling 56,217 shares. This net reduction in treasury holdings resulted in a closing balance of 71,083 shares by the end of July, down from the 76,632 shares held at the end of June. Consequently, the total direct and indirect self-held capital represented a marginal 0.07% of the company’s total share capital. The scope of the reporting is limited to the issuer's activities on the French market during the single month of July 2024. Notably, there were no share transfers related to the exercise of employee options or debt conversions, nor were any shares cancelled during this timeframe. Furthermore, the company reported zero transactions involving individuals or entities holding more than 10% of the capital or members of the executive leadership team. This suggests that the monthly activity was focused on routine market liquidity rather than significant structural changes to ownership or capital reduction.

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NaconJul 2024

Financial

Universal Registration Document 2023/24: Including the Annual Financial Report

The 2023/24 Universal Registration Document for Nacon outlines the company’s strategic evolution into a leading "pure player" in the global video game and premium accessories markets. Established as a standalone entity from Bigben Interactive in 2019, Nacon operates a vertically integrated model as a developer, publisher, and accessory designer. The company specifically targets the "AA" gaming segment—niche titles with budgets between €1 million and €20 million—focusing on the Racing, Sport, Simulation, and Adventure genres. Financially, the fiscal year ending March 31, 2024, saw revenue grow to €167.7 million, driven by an 11.5% increase in video game sales and a record EBITDA of €70.9 million. While the company faced non-recurring charges from the commercial underperformance of *The Lord of the Rings: Gollum*, it maintained a strong balance sheet with €24.6 million in available cash. A significant shift in operations is evident as Nacon moves toward in-house production; 16 internal studios now develop 80% of its titles, reducing reliance on third-party developers. The accessories division remains a core pillar, supported by over 130 patents and high-level licensing partnerships with Sony and Microsoft. The geographic scope is global, with 89.1% of sales derived from export markets and a workforce of 1,113 employees spread across studios in France, Australia, Canada, and Europe. Looking ahead to 2024/25, the strategy emphasizes "Live Ops" to extend game lifespans and the launch of the "Revosim" brand to capture the growing simulation racing market. Risk management remains focused on mitigating product delays and supply chain volatility, while a voluntary CSR strategy targets a 30% reduction in carbon emissions by 2030. Parent company Bigben Interactive retains a 60.23% stake, ensuring stability as Nacon pursues its goal of becoming a global leader in the AA segment.

investment mergers-acquisitions market-analysis+2

NaconJun 2024

Financial

Strong Earnings Growth in 2023/24

Nacon’s consolidated financial results for the 2023/24 fiscal year, ending March 31, 2024, demonstrate significant growth in profitability and operational efficiency. The company achieved a 45% increase in EBITDA to €70.9 million and a 37.3% rise in net income to €17.5 million. Total sales grew by 9.4% to €170.7 million on a non-IFRS basis, driven by a robust release schedule of 19 titles and a strong performance from the back catalogue. The accessories segment also returned to growth in the second half of the year, supported by new product launches and an expanding console install base. The financial position remains stable, characterized by a 54.4% increase in cash flow from operating activities, totaling €73.1 million. While net debt decreased slightly to €85.2 million, the company opted not to issue a dividend, prioritizing the reinvestment of cash flow into its development pipeline. Currently, Nacon has 45 games in development, representing a carrying value of €129.5 million. Operational margins improved across the board, with gross margin reaching 62.1% and operating income rising 20.5% to €20.9 million. Looking toward the 2024/25 fiscal year, the company anticipates continued growth in sales and operating income. The strategy focuses on "business convergence," specifically within the racing market through the creation of a dedicated racing department and the "Revosim by Nacon" brand. This initiative aims to integrate game publishing with premium peripherals like steering wheels and headsets. With approximately 15 games scheduled for release, including major titles like Test Drive Unlimited: Solar Crown and Greedfall II, the company expects to leverage its unified business model to strengthen its competitive position in the global gaming market.

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NaconJun 2024

Financial

Fourth Quarter 2023/24 Sales

NACON reported a significant increase in financial performance for the 2023/24 fiscal year, ending March 31, 2024. Annual non-IFRS sales reached €170.7 million, representing a 9.5% increase over the previous year. This growth was particularly evident in the fourth quarter, where sales rose 9.8% to €41.0 million. The company’s gaming division served as the primary driver of this expansion, with annual gaming sales increasing 14.9% to €104.0 million. This performance was bolstered by a heavy release schedule of 19 titles, including the commercial success of Robocop: Rogue City and Cricket 24. The gaming segment's growth was fueled by a 21.2% rise in new catalogue sales over the full year, while the back-catalogue remained resilient with a 7.4% increase. In the fourth quarter specifically, new game sales rose 16.3% following the release of titles such as Taxi Life and War Hospital. The accessories division also showed momentum, growing 13.1% in the final quarter to €13.8 million. This surge was attributed to the successful launch of premium peripherals like the RIG 600 PRO headset and the REVOLUTION 5 PRO controller, which saw particularly strong adoption in the United States. Looking ahead to the 2024/25 fiscal year, the company anticipates continued growth in operating income that outpaces sales increases. The strategy involves a pipeline of approximately 15 new releases, including high-profile titles such as Test Drive Unlimited: Solar Crown and early-access launches for Greedfall II and Terminator: Survivors. With a global presence across 100 countries and a workforce of over 1,000 employees, the company expects its expanding installed base of consoles and a strengthening back-catalogue to provide a solid foundation for the upcoming financial period.

market-analysis marketing france

NaconApr 2024

Legal

Monthly Disclosure of Share Buyback Operations: March 2024

Nacon, a prominent player in the video game industry, executed a series of share buyback operations throughout March 2024 as part of a long-standing program initiated in March 2020. These transactions were conducted under the regulatory framework of the Autorité des Marchés Financiers, specifically adhering to instructions regarding the disclosure of treasury share transactions and stabilization operations. The primary objective of these activities is the management of the company's own equity securities, a common practice for listed entities seeking to optimize capital structure or fulfill obligations related to employee share schemes. During the month of March, the company acquired 27,705 shares while simultaneously selling 37,861 shares. No shares were transferred for purposes such as the exercise of employee stock options or debt securities, and no shares were canceled during this period. Furthermore, the data indicates that no buybacks were conducted from individuals holding more than 10% of the capital or from company executives. These movements resulted in a net decrease in the total number of treasury shares held compared to the previous month's closing balance. As of the end of March 2024, the total direct and indirect self-held capital amounted to 87,063 shares, representing approximately 0.10% of the company's total share capital. This is a slight reduction from the 97,219 shares held as of February 29, 2024. The scope of this disclosure is limited to the French market and the specific activities of Nacon, providing a transparent snapshot of its monthly liquidity and equity management strategies within the broader gaming sector.

investment market-analysis france+1

NaconMar 2024

Financial

Sales Up 43.3% to €59.0 Million in the Third Quarter of 2023/24

Nacon experienced significant financial expansion during the third quarter of the 2023/24 fiscal year, with consolidated sales rising 43.3% to reach €59.0 million. This performance contributed to a nine-month sales total of €126.7 million, representing a 6.8% increase under IFRS standards compared to the previous year. The growth was primarily driven by the gaming division, which saw a 74.3% surge in revenue to €33.3 million. This spike was fueled by the commercial success of new releases, specifically Robocop: Rogue City and Cricket 24, alongside a 42.1% increase in back-catalogue sales supported by rising console ownership and strategic contracts. The accessories segment also demonstrated positive momentum, growing 17.1% to €23.9 million during the quarter. This uptick was attributed to the successful market entry of premium peripherals, including the RIG 600 PRO headset and the REVOLUTION 5 PRO controller. While the nine-month performance for accessories remained essentially flat with a marginal 0.3% decline, the recent product launches have stabilized the division's trajectory heading into the final quarter. Looking forward, the outlook remains optimistic for the remainder of the fiscal year ending March 31, 2024. A robust release schedule featuring over ten new titles, such as Test Drive Unlimited: Solar Crown and Taxi Life, is expected to sustain revenue growth. Management confirms expectations for strong increases in both annual sales and operating income, supported by a diversified portfolio of 16 development studios and a global distribution network. The results underscore a successful integration of AA game publishing and premium hardware manufacturing within the broader video game market.

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NaconJan 2024

Financial

First Half 2023/24 Results

Nacon’s financial results for the first half of the 2023/24 fiscal year, covering the period from April 1 to September 30, 2023, reflect a transitional phase characterized by a back-weighted release schedule. Total IFRS sales reached €67.8 million, a decline from €77.5 million in the previous year. This decrease was primarily driven by a 9% drop in new game sales due to a limited release calendar during the first six months. Despite lower top-line revenue, the company achieved a significant improvement in margin rates, with EBITDA rising 20.1% to €29.3 million and the EBITDA margin expanding from 31.4% to 43.2%. The publishing segment saw resilient back-catalogue performance, contributing €21.2 million, while the accessories division generated €24.9 million. Accessories experienced a late-period surge attributed to the expanding installed base of current-generation consoles. However, operating income fell 62.7% to €3.7 million, largely due to a substantial increase in depreciation and amortization charges related to non-current assets, which rose to €25.6 million. Net income for the period was €3.2 million, impacted by higher interest rates and unfavorable foreign exchange fluctuations. Management maintains a positive outlook for the full fiscal year, anticipating strong growth in both sales and operating income. This optimism is supported by a robust second-half pipeline featuring over ten new titles, including the successful launch of RoboCop: Rogue City and the upcoming Test Drive Unlimited: Solar Crown. With 50 games currently in development and a carrying value of €118.1 million in related assets, the company is leveraging its 16 internal studios and new premium peripherals, such as the Revolution 5 Pro controller, to drive performance through the remainder of the year.

investment market-analysis france

NaconNov 2023

Financial

First Half 2023/24 Interim Financial Report: Six Months Ended 30 September 2023

NACON experienced a transitional first half for the 2023/24 fiscal year, characterized by a strategic shift toward higher-margin digital sales despite a contraction in top-line results. Non-IFRS revenue for the six months ended September 30, 2023, reached €70.8 million, representing an 8.7% year-on-year decline. This downturn was primarily driven by a 12.7% drop in gaming accessory sales and a 9.0% decrease in new software releases. However, the company successfully expanded its gross margin to 64.2%, fueling a 20.1% increase in EBITDA to €29.3 million. Net income fell significantly to €3.2 million from €8.4 million in the prior year, largely due to increased depreciation and financing costs associated with a heavy investment cycle. The financial structure reflects a high level of ongoing investment in the software pipeline, with €187.8 million currently held in net game development costs and €138.3 million in goodwill across acquired studios. To better align with the extended lifespans of digital titles, the accounting methodology for game amortization was updated to a five-year diminishing balance method. Cash flow from operating activities improved to €26.3 million, supported by a €3 million partial disposal of future revenue rights for the title Gollum. While net cash positions decreased to €18.3 million, the group secured additional liquidity through a €5 million loan from BPI France and subsequent post-balance sheet financing totaling €10 million. Operating as a single "NACON - Gaming" segment, the group maintains a robust international footprint, with export sales accounting for 86.9% of total revenue. Management remains optimistic for the full fiscal year, anticipating strong growth in both sales and operating income. This outlook is underpinned by a dense release schedule featuring high-profile titles such as RoboCop: Rogue City and the introduction of new premium gaming accessories. Despite the temporary dip in net earnings and the settlement of various intellectual property disputes, the group’s focus on back-catalogue performance and strategic studio acquisitions positions it for a stronger second-half performance.

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NaconNov 2023