Nacon

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.

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.

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.

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.

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.

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.

NACON reported consolidated sales of €38.5 million for the first quarter of the 2023/24 financial year, representing a 9.3% decrease compared to the same period in the previous year. This performance reflects a transitional phase for the company, characterized by a stable gaming software segment and a significant decline in hardware accessories. While the gaming business remained relatively flat at €27.4 million, new game releases saw a 4.5% increase in revenue. This growth was driven by the strong performance of titles such as Ravenswatch, Tour de France, and TT Isle of Man Ride on Edge 3, which offset the underperformance of The Lord of the Rings: Gollum.

The accessories division experienced a 25.5% drop in sales, falling to €10.4 million. This decline is attributed to market cycles, though management anticipates a recovery starting in the third quarter as the installed base of current-generation consoles grows and new premium peripherals are launched. Back catalogue sales also saw a slight contraction of 6.8%, totaling €11.8 million, which the company attributes to a high comparison base from the previous year’s exceptional growth.

Despite the initial quarterly dip, the outlook for the remainder of the 2023/24 fiscal year remains positive. The company confirmed its annual guidance, projecting strong growth in both sales and operating income. This optimism is supported by an aggressive release schedule featuring approximately 20 new titles, including high-profile games like RoboCop: Rogue City and Gangs of Sherwood. The strategy focuses on leveraging a diverse portfolio of 16 development studios and a global distribution network to capitalize on upcoming software launches and a revitalized accessories market.

NACON’s financial results for the 2022/23 fiscal year, ending March 31, 2023, reveal a period of strategic transition characterized by stable revenue and improved profitability despite a challenging macroeconomic environment. Total sales remained flat at €156.0 million, but the company achieved a significant 29.8% increase in operating income to €17.3 million. This growth in profitability was primarily driven by a shift in the product mix toward software; gaming sales surged by 66.3% to €90.5 million, while the accessories segment declined by 36.6% to €61.2 million due to global console shortages.

The company’s gross margin improved substantially, rising from 49.9% to 59.1% of sales. This financial performance was supported by a growing back catalogue and the integration of new acquisitions, most notably Daedalic Entertainment. While operating expenses rose due to intensive development work and the full-year impact of recent acquisitions, EBITDA increased by 25.5% to €48.9 million. NACON maintained a solid balance sheet with €242.6 million in equity, though net debt rose to €67.3 million following €34.9 million in investment activities and the securing of new medium-term bank loans.

Looking ahead to the 2023/24 period, the company anticipates strong growth driven by an aggressive release schedule of approximately 20 games, compared to 13 in the previous year. Key titles include The Lord of the Rings: Gollum and several major sports franchises. The accessories division is also expected to recover as console supply stabilizes and new products enter the market. Management remains committed to a growth-oriented strategy, electing to reinvest cash flow into development rather than issuing a dividend. The company currently manages 16 development studios and has 53 games in its production pipeline.

Nacon reported consolidated sales of 156.4 million euros for the 2022-2023 financial year, representing a marginal increase of 0.3% compared to the previous period. The fiscal year, which concluded on March 31, 2023, was characterized by a significant divergence between the company’s two primary business segments. While the video games division experienced robust growth, the accessories division faced substantial headwinds due to global hardware shortages.

The video games segment saw revenue rise by 67.0% to 90.9 million euros, driven by a strong fourth quarter that featured releases such as Blood Bowl 3 and Chef Life. This momentum was further bolstered by a record-performing back catalogue, which grew by 44.9% over the full year. Conversely, the accessories business declined by 36.6% to 61.2 million euros. This downturn was attributed to the limited availability of new-generation consoles throughout much of the year, though a slowdown in this decline during the final quarter suggests a stabilizing market.

Looking ahead to the 2023-2024 financial year, Nacon anticipates strong growth supported by an ambitious release schedule of approximately twenty titles, including high-profile games like The Lord of the Rings: Gollum and RoboCop: Rogue City. The company expects the accessories segment to recover as console supply tensions ease and new products enter the market. While current operating income for the 2022-2023 period is expected to be lower than the previous year, Nacon forecasts an overall increase in both operating and net income.

Nacon, a prominent entity in the video game industry, executed a series of share buyback transactions throughout March 2023 as part of a program originally initiated on March 27, 2020. This regulatory filing, submitted in accordance with Autorité des Marchés Financiers standards, details the monthly fluctuations in the company’s treasury shares. At the beginning of the period, the issuer held a balance of 70,852 shares. Over the course of the month, the company acquired 56,177 shares and sold 57,471 shares, resulting in a slight net decrease in its total holdings.

The cumulative position at the time of the declaration stood at 69,558 shares, representing approximately 0.08% of the company’s total share capital. The data indicates that no shares were cancelled or transferred for employee stock options or debt securities during this specific timeframe. Furthermore, the issuer reported no buyback transactions involving individuals or entities holding more than 10% of the capital, nor any transactions involving company executives.

The scope of this activity is limited to the French equity market where Nacon is listed, focusing exclusively on the issuer's own ordinary shares. The methodology follows standard European financial reporting requirements for share repurchase programs, providing transparency regarding liquidity and capital management. These figures reflect a high volume of trading activity relative to the total treasury position, suggesting active management of the share buyback program to support market liquidity or stabilize share value during the first quarter of 2023.

NACON reported consolidated sales of 118.7 million euros for the first nine months of the 2022-23 financial year, representing a 4.5% decrease compared to the previous year. This performance was characterized by a significant divergence between the company’s two primary business segments: video game publishing and hardware accessories. While the third quarter specifically saw a 19.6% decline in overall sales to 41.1 million euros, the underlying data reveals a robust expansion in software offset by a sharp contraction in the accessories market.

The video games division experienced substantial growth, with nine-month sales rising 59.0% to 66.1 million euros. This surge was driven by both new releases and a strong back catalogue, which grew by 39.7%. Key contributors included titles such as WRC Generations, Steelrising, and Session Skate Sim. Conversely, the accessories segment fell by 37.8% over the nine-month period, totaling 49.0 million euros. This decline is attributed to the global shortage of new-generation consoles and cautious inventory management by distributors, which suppressed demand for peripherals.

Geographically and operationally, the results cover NACON’s global distribution network across 100 countries from April 1 to December 31, 2022. Despite the hardware headwinds and the delayed release of several major titles, the company expects full-year sales and operating income to be slightly higher than the previous year. Looking ahead to the 2023-24 financial year, growth is expected to accelerate through a pipeline of approximately twenty new games, including high-profile releases like The Lord of the Rings Gollum and RoboCop: Rogue City, alongside a projected rebound in the accessories market as console supply stabilizes.

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