Nacon

Game Co.

106 documents

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

Documents

Financial

Universal Registration Document: Including the 2021/22 Annual Financial Report

Nacon’s 2021/22 Universal Registration Document details the company’s strategic evolution into a leading "AA" video game publisher and premium accessory manufacturer. Covering the fiscal year ending March 31, 2022, the report outlines a period of aggressive vertical integration and portfolio diversification. The primary thesis centers on securing the global gaming value chain by acquiring 16 in-house development studios and leveraging synergies between high-performance hardware and specialized software niches, such as racing, RPGs, and simulations. Financial performance for the period reflected significant investment despite macroeconomic headwinds. Consolidated revenue fell 12.3% to €155.9 million, and net income decreased to €9.97 million, primarily due to the strategic postponement of four major titles and global console shortages affecting accessory sales. However, the company significantly strengthened its long-term asset base, with intangible assets rising to €137.4 million and the successful acquisition of five studios, including Big Ant Studios and Daedalic Entertainment. To fund this expansion, Nacon transitioned from a net cash position to a net debt of €10.4 million, supported by €52.5 million in new bank loans while remaining compliant with all financial covenants. The scope of operations is global, with a strong emphasis on the European and North American markets. Digital sales now dominate the software segment, accounting for 73% of video game revenue, while the accessories division remains the largest overall revenue driver at 62%. Personnel growth was substantial, with the headcount rising to 852 employees. Looking forward, the "Nacon 2023" strategy targets revenues exceeding €250 million for the 2022/23 fiscal year, driven by a robust release pipeline of nearly 50 games in development and continued leadership in the premium controller and headset markets.

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NaconJun 2022

Financial

2021‑22 Annual Sales in Line with Expectations

Nacon’s audited consolidated results for the 2021-22 fiscal year, ending March 31, 2022, characterize the period as a transition year defined by strategic investments and a shifting product mix. Annual sales reached 155.9 million euros, a 12.3% decrease from the previous year. This decline was primarily driven by the Games business segment, which saw a 21.1% drop in revenue to 54.4 million euros following the decision to postpone several major titles. The Accessories segment remained more resilient, contributing 96.6 million euros despite global console shortages. Profitability metrics reflected these transitional pressures, with current operating income falling 41.6% to 19.0 million euros and net profit landing at 10.0 million euros. The gross margin rate decreased slightly to 49.9%, influenced by a higher proportion of accessory sales. However, the company successfully mitigated rising shipping and raw material costs through price increases. To fund its aggressive expansion, Nacon invested over 100 million euros in game development and studio acquisitions over a two-year period, increasing its pipeline from 33 to 46 games in development. Looking ahead to the 2022-23 fiscal year, the company anticipates a significant growth acceleration fueled by a robust publishing schedule, including titles such as The Lord of the Rings Gollum and Steelrising. Management projects annual sales to exceed 250 million euros with a current operating margin surpassing 50 million euros. While some delays persist, such as the postponement of Test Drive Unlimited Solar Crown to optimize quality, the company maintains a strong balance sheet with 228.4 million euros in equity and plans to continue its external growth strategy through further studio acquisitions.

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NaconMay 2022

Financial

FY 2021/22, a Transition Year

Nacon’s financial performance for the 2021/22 fiscal year reflects a strategic transition period characterized by a deliberate shift in release schedules and external expansion. Total annual sales reached €155.9 million, representing a 12.3% decline compared to the previous year. This downturn was primarily driven by the publishing segment, where revenue fell 21.2% to €54.4 million. The fourth quarter was particularly impacted by the postponement of major titles, such as Vampire: The Masquerade – Swansong, resulting in a 25.6% quarterly revenue drop. Despite these delays, the back-catalogue business remained resilient, growing 12.7% during the final quarter. The accessories division, which remains the company's largest revenue contributor at €96.6 million, saw a modest 6.3% decline over the full year. This segment faced significant headwinds, including global console shortages and a challenging geopolitical and economic environment. Consequently, current operating income for the fiscal year is projected to fall between €17 million and €19 million, reflecting the lower-than-anticipated sales volume in the final quarter. Looking forward to the 2022/23 fiscal year, the outlook remains highly optimistic with a projected sales target between €250 million and €300 million. This anticipated growth is supported by a robust pipeline of upcoming releases and the integration of newly acquired entities, including Midgar Studio and Daedalic Entertainment. Management expects a sharp acceleration in business activity and aims for a current operating margin exceeding 20%. The company continues to pursue an external growth strategy to bolster its internal development capabilities and solidify its position in the AA video game publishing and premium gaming device markets.

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NaconApr 2022

Financial

Return to Growth for Q3 2021-22 (+5,2%) Confirmation of 2021/22 & 2022/23 Targets

Nacon reported a return to revenue growth during the third quarter of the 2021-22 fiscal year, following two consecutive quarters of decline. Sales for the period between October and December reached 51.2 million euros, representing a 5.2% increase compared to the previous year. This rebound was driven by both the video games and accessories segments, which grew by 3.4% and 7.4% respectively. Key contributors included the successful launch of Cricket 22 and the release of the Revolution X Pro Controller for Xbox. Despite this quarterly growth, cumulative nine-month sales remained down 8.2% at 124.2 million euros, largely due to high year-over-year comparisons from pandemic-related lockdowns in the prior period. The accessories division performed strongly with 34.9 million euros in quarterly revenue, though growth was tempered by the global shortage of PlayStation 4 and next-generation consoles. In the games segment, the back catalogue remained resilient, contributing 5.5 million euros to the quarterly total. Looking toward the final quarter of the fiscal year, a sharp decline in publishing revenue is anticipated due to the postponement of the high-profile title Vampire: The Masquerade – Swansong to the following fiscal year. Despite these short-term shifts in release schedules, financial targets for the full 2021-22 fiscal year remain unchanged, with projected sales between 150 million and 180 million euros and operating income of approximately 20 million euros. The outlook for the 2022-23 fiscal year is highly optimistic, supported by a pipeline of over 15 game releases, including major titles such as The Lord of the Rings: Gollum and Test Drive Unlimited Solar Crown. Long-term targets for 2022-23 anticipate sales between 250 million and 300 million euros with an operating margin exceeding 20%, supported by a strategy of selective acquisitions to strengthen the company’s position in the AA gaming market.

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NaconJan 2022

Financial

HY 2021/22 Audited Consolidated Results

Nacon’s financial results for the first half of the 2021/22 fiscal year, covering April 1 to September 30, 2021, reflect a significant downturn compared to the previous year’s exceptional performance. Sales fell by 15.7% to 73.0 million euros, while current operating income dropped 46.3% to 8.4 million euros. This decline is attributed to an unfavorable basis of comparison, as the prior year benefited from a surge in demand for video games and accessories during global lockdowns. Additionally, the accessories segment faced logistical challenges in the United States and rising costs for raw materials and transport, though gross margins remained relatively stable at 52.1%. The video game division saw a 16.9% decrease in revenue due to lower editorial activity, though the back catalogue remained resilient, accounting for nearly 60% of game sales. To optimize long-term quality and commercial performance, several major titles, including Vampire: The Masquerade – Swansong and Blood Bowl 3, were postponed to the following fiscal year. Consequently, the company adjusted its 2021/22 full-year targets downward, now projecting sales between 150 and 180 million euros and current operating income of approximately 20 million euros. Despite the immediate slowdown, the long-term outlook has been revised upward. For the 2022/23 fiscal year, Nacon expects sales to reach between 250 and 300 million euros with an operating margin exceeding 20%. This optimism is driven by a robust pipeline of over 15 game releases and the continued expansion of its development capabilities, highlighted by the recent acquisition of Ishtar Games. The company maintains a solid balance sheet with 219.0 million euros in equity, supported by increased investments in its games catalogue and studio infrastructure.

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NaconNov 2021

Financial

First Half Year 2021/22 Sales

Nacon reported consolidated sales of 72.8 million euros for the first half of the 2021/22 fiscal year, representing a 15.9% decline compared to the same period in the previous year. This performance was primarily attributed to a high basis of comparison from the prior year, which had been significantly bolstered by pandemic-related lockdowns, and substantial logistical disruptions. Global supply chain issues, particularly affecting sea and land transport between Asia and North America, led to the postponement of several accessory deliveries originally scheduled for the second quarter. The games segment generated 27.1 million euros in the first half, down 17.5% year-over-year, despite positive critical and commercial receptions for titles such as WRC 10 and Rogue Lords. The back catalogue remained resilient, contributing stable revenue even as editorial activity fluctuated. The accessories division saw a 15.1% decline to 43.7 million euros, with strong inventory management in Europe partially offsetting the logistical delays experienced in the American market. Despite the first-half contraction, the outlook remains positive for the remainder of the fiscal year. Growth is expected to accelerate in the second half driven by a robust release schedule including Blood Bowl 3 and Vampire: The Masquerade – Swansong, alongside new hardware launches like the Revolution X Pro controller for Xbox. Consequently, the company confirmed its full-year targets of 180 to 200 million euros in sales with a 20% current operating margin. Looking further ahead to the 2022/23 fiscal year, the company anticipates sales between 230 and 260 million euros, supported by major upcoming releases and a continued strategy of studio acquisitions to expand its intellectual property portfolio.

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NaconOct 2021

Financial

Interim Financial Report for the Six Months Ended 30 September 2021

NACON experienced a transitional first half for the 2021/22 fiscal year, characterized by a strategic pivot toward long-term development despite immediate financial headwinds. Revenue for the period reached €73.0 million, representing a 15.7% year-on-year decline from a high comparison base established during the 2020 lockdowns. Net income fell to €3.8 million, down from €9.6 million in the prior year, as the company navigated a lighter release schedule and normalized operating expenses. Gaming accessories remained the primary revenue driver, accounting for 60% of total sales, while the hardware segment successfully mitigated global electronic component shortages through proactive stock procurement. The company aggressively expanded its internal development ecosystem through the total acquisition of Passtech Games, Big Ant Holding, Crea-ture Studios, and Ishtar Games. These business combinations, along with the full integration of RaceWard, increased total goodwill to €73.8 million and net intangible assets to €111.6 million. This expansionary phase led to a significant reduction in cash and cash equivalents, which dropped from €111.5 million to €57.3 million, reflecting heavy investment in studio acquisitions and rising game development costs. Financial liabilities were further impacted by earn-out structures totaling over €26 million, contingent on future performance and critical reception. Management adjusted its short-term outlook by lowering 2021/22 revenue guidance to €150–180 million following the strategic delay of four major titles. However, these delays are intended to ensure product quality and have resulted in an increased revenue target of €250–300 million for the 2022/23 fiscal year. Despite ongoing legal disputes regarding intellectual property and the operational uncertainties posed by the pandemic, the company maintains a robust financial position with no new provisions required. The focus remains on scaling internal production capabilities to drive future growth across the global gaming market.

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NaconOct 2021

Financial

Q1 2021/22 Sales

Nacon achieved sales of 33.7 million euros during the first quarter of the 2021/22 fiscal year, representing an 11.3% decline compared to the same period in the previous year. This decrease is attributed primarily to an exceptionally high comparison basis from the first quarter of 2020/21, when global lockdowns significantly inflated consumer demand for digital entertainment and gaming hardware. Despite the year-over-year dip, the results demonstrate a structural growth trend when compared to pre-pandemic levels, particularly within the digital back catalogue. The video games segment generated 12.2 million euros, a 16% decrease from the prior year. However, back catalogue sales remained resilient at 9.2 million euros, nearly four times higher than the 2.4 million euros recorded during the same period in 2019/20. New releases such as Roguebook and Pro Cycling Management 2021 contributed to this performance. In the accessories division, sales fell 8.8% to 20.6 million euros. While the initial launch of RIG helmets in the United States created a difficult year-over-year comparison, other accessory lines grew by 19%, driven by strong demand for PlayStation 4 and Xbox Pro Compact controllers. Management maintains a positive outlook for the remainder of the fiscal year, anticipating growth in the second half driven by a robust release schedule including titles such as WRC 10 and Vampire: The Masquerade – Swansong. Financial targets for 2021/22 remain unchanged, with projected sales between 180 and 200 million euros and a current operating margin of 20%. Looking further ahead to 2022/23, the company expects to reach sales between 230 and 260 million euros, supported by major upcoming releases such as The Lord of the Rings: Gollum and Test Drive Unlimited Solar Crown.

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NaconJul 2021

Financial

Universal Registration Document

This analysis synthesizes the 2020/2021 fiscal performance and strategic positioning of Nacon, a global leader in the "AA" video game publishing and premium gaming accessory markets. Following its 2019 spin-off from Bigben Interactive and a successful 2020 IPO, the company has transitioned into a vertically integrated developer-publisher. The reporting period, ending March 31, 2021, covers a year of significant expansion across Europe, North America, and Oceania, marked by the integration of 11 in-house development studios and a workforce that grew to 631 employees. The primary thesis centers on Nacon’s "AA" and "Triple i" (3i) strategy, which targets niche audiences with high-quality titles aiming for sales between 200,000 and 3 million copies. This software strategy is balanced by a robust hardware division, which saw a 96.1% surge in revenue following the acquisition of the RIG headset brand and strengthened licensing partnerships with Sony and Microsoft. Financially, the company reported a 37.4% increase in consolidated revenue to €177.8 million and a net income of €18.3 million. Digital sales now represent 73.3% of software revenue, significantly improving margins and reducing seasonal dependency. Operational risks are characterized by high materiality regarding talent retention and potential product delays, though the latter is mitigated by increasing in-house development (growing from 5 to 22 internal projects). While the COVID-19 pandemic necessitated a shift to remote work, it acted as a growth catalyst for the industry. Nacon maintains a strong financial position with €96.7 million in cash and a net cash surplus of €41.9 million, supporting an aggressive acquisition strategy and an increased 2022/23 revenue target of €230–260 million. Governance remains closely tied to Bigben Interactive, which retains a 76.67% stake, while the company has begun implementing formal CSR frameworks focusing on "zero plastic" packaging and supply chain transparency.

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NaconJul 2021

Financial

Strong Increase in FY 2020/21 Annual Results

Nacon reports a significant increase in financial performance for the fiscal year 2020/21, ending March 31, 2021. Sales reached 177.8 million euros, representing a 37.4% increase over the previous year. This growth was primarily driven by the successful expansion into the United States market, strong demand for premium gaming accessories, and a tripling of back-catalogue software sales. Current operating income rose by 43.8% to 32.5 million euros, yielding an operating margin of 18.3%. Net profit for the period grew by 19.6% to 18.2 million euros, despite non-recurrent expenses related to bonus share plans and increased tax obligations. The financial position remains robust with operating cash flow rising 146% to 55.7 million euros, which effectively funded 56.4 million euros in capital expenditures. While cash and cash equivalents decreased slightly to 96.7 million euros following bank loan repayments and heavy investment in game development, the company maintains a high level of liquidity. To support continued growth and studio acquisitions, the Board of Directors elected to reinvest all cash flows into the business rather than issuing a dividend for the fiscal year. Looking forward, the outlook is highly optimistic due to the transition to new console generations and a strong pipeline of upcoming titles such as Blood Bowl 3 and WRC 10. Consequently, management has accelerated its long-term financial goals. The sales target for FY 2021/22 has been raised to a range of 180 to 200 million euros with a 20% operating margin. Furthermore, the FY 2022/23 sales guidance was revised upward to between 230 and 260 million euros, supported by the anticipated release of major intellectual properties including The Lord of the Rings: Gollum and Test Drive Unlimited Solar Crown.

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NaconMay 2021

Financial

FY 2020/21 Sales Target Exceeded

Nacon achieved record financial results for the 2020/21 fiscal year, generating 177.9 million euros in sales. This performance represents a 37.5% increase over the previous year and exceeds the company’s upwardly revised targets. Growth was particularly robust in the fourth quarter, which saw a 68.7% surge in revenue driven by the resilience of the gaming accessories market and the steady performance of the software publishing division. The accessories segment emerged as the primary growth engine, nearly doubling its revenue to 103.2 million euros. This success was attributed to the integration of premium RIG headsets, strong demand for licensed controllers on the established PlayStation 4 base, and the launch of new peripherals for the Xbox Series X|S. Despite global component shortages, proactive supply chain management allowed for consistent delivery to retail channels. In the gaming division, while overall sales remained stable at 69.1 million euros, back-catalogue revenue tripled to 31.0 million euros. Digital sales continued their upward trajectory, accounting for 75% of total game revenue in the final quarter. Strategically, the period was defined by aggressive expansion following a 2020 IPO. The company acquired three development studios—Neopica, Passtech Games, and BigAnt Studios—and established a direct presence in the United States. With a confirmed current operating income rate of 18%, the company anticipates further momentum as it integrates these new studios and releases a pipeline of titles scheduled through 2024. Consequently, management intends to revise its long-term 2023 strategic plan upwards to reflect this accelerated growth and increased operating margins.

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NaconApr 2021

Legal

Monthly Disclosure of Treasury Share Transactions: April 2021

Nacon, a prominent French video game publisher and hardware manufacturer, executed a series of treasury share transactions during April 2021 as part of a buyback program initiated on March 27, 2020. These activities were conducted in compliance with French financial market regulations and reported to the Autorité des Marchés Financiers. The primary objective of these transactions was the management of the company’s own equity through the acquisition and disposal of ordinary shares on the market. The data indicates a net increase in treasury shareholdings over the thirty-day period. Nacon began the month with a balance of 31,885 shares and proceeded to purchase 23,805 additional shares. During the same timeframe, the company sold 10,906 shares. No shares were cancelled, transferred for employee stock option exercises, or used for debt securities during this specific window. Furthermore, no transactions were conducted with individuals or entities holding more than 10% of the company’s capital, nor with any members of the executive leadership team. By the end of April 2021, the cumulative total of directly and indirectly held treasury shares reached 44,784. This total represents approximately 0.05% of the company’s total share capital. The reporting reflects a period of active liquidity management within the French gaming sector, demonstrating a controlled use of buyback mechanisms to stabilize or manage equity without significant dilution or large-scale capital restructuring. The scope of the disclosure is limited to the French domestic market and focuses exclusively on the movement of Nacon’s ordinary shares.

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NaconApr 2021