NACON - PRESS RELEASE: 2019/20 Annual sales up 14.4% to 129.4 M€ in line with targets
April 27 2020 - 11:55AM
NACON - PRESS RELEASE: 2019/20 Annual sales up 14.4% to 129.4 M€ in
line with targets
Nacon
Press release
Lesquin, 27 April 2020, 18:00
2019/20 Annual sales up 14.4% to
129.4 M€ in line with targets
Current operating margin (2) rate target
raised in excess of 16%
100 M€ cash available thanks to the
successful IPO
IFRS – M€
Sales |
2019/20 |
2018/19 |
Change |
1st Half (3)(4) |
63.7 |
48.6 |
+31.3% |
3rd Quarter(1) |
40.5 |
34.7 |
+16.4% |
4th Quarter(1) Of which GamesOf which AccessoriesOf
which Others(4) |
25.2
15.78.5 1.0 |
29.8 10.417.71.7 |
-15.5% +51.4% -52.2%
-41.6% |
2019/2020 (12 months)
Of which GamesOf which AccessoriesOf which Others(4) |
129.4
70.752.66.1 |
113.1 50.355.27.6 |
+14.4% +40.6%
-4.8% -20.1% |
- Non audited data
- Current Operating Margin = Current Operating Income rate =
Current Operating Income as a percentage of sales.
3) Sales flows for the Gaming business
prepared on the basis of Bigben Interactive's accounting records.
These flows integrate development studio acquisitions
as from their actual acquisition date.(4) The “Other” sales
come from the Mobile and Audio turnover remaining with the Nacon
subsidiaries which were not carved off during the partial asset
contribution from Bigben Interactive to Nacon. These are included
in the "Mobile" and "Audio" categories of Bigben's sales.
Business slowdown in the 4th
quarter
In the 4th quarter of the 2019/20 fiscal year
(from January 1 to March 31, 2020), business declined by 15.5%
adversely impacted by a product base effect on Accessories and to a
lesser extent to the exceptional consequences from the Covid-19
health crisis with the closing of points of sale.
GAMES
Turnover was up sharply at €15.7 million
(compared with €10.4 million for the 4th quarter 2018/19) thanks to
the boom in digital sales, benefiting in particular from the
"lockdown" effect, which “boosted” games sales. The latter were
multiplied 2.7 fold over the period and represented 11.0 M€ in
sales over the quarter compared to 4.1 M€ sales in the same quarter
of the previous financial year. This growth in digital sales relies
on a strong back catalogue growing over the years. Regarding
physical retail sales, the launches of AO Tennis 2, Rugby 20,
Overpass and TT Isle of Man 2 were in line with expectations.
ACCESSORIES
Accessories fell sharply (8.5 M€ vs. 17.7 M€ a
year earlier) due to a product base effect (release in Q4 2018/19
of the two controllers REVOLUTION Unlimited Pro Controller and
Asymmetric Wireless for PS4™). In addition, the mandatory closing
of numerous stores linked to the Covid-19 health crisis also
impacted sales of Accessories in the second half of March.
A 2019/20 year of growth driven by the
momentum of new games and digital sales
With 129.4 M€ sales and despite the drop in Q4
2019/20, Nacon reached the sales guidance set on its Initial Public
Offering (between 127 and 133 M€).
GAMES
Games generated 70.7 M€ sales, representing a
40.6% growth. This development was driven by the success of
numerous new games, including Warhammer®: Chaosbane and WRC8, which
achieved a Metacritic score of 79%. Digital sales continued to grow
strongly, reaching 48.9 M€ compared to 20.3 M€ for the previous
year. They thus represented 69% of Games sales, compared to 41% a
year earlier. This growth is in line with market evolution and
reached a peak at the end of March linked to the effects of
population lockdown.
ACCESSORIES
Accessories posted sales of 52.6 M€, down 4.8%
due to the absence of any major new accessory releases during the
financial year, with the exception of the REVOLUTION Pro Controller
3 for PS4TM.
2019/20 Current Operating Income target
raised
The health crisis impacted Accessory sales at
the end of the financial year but improved digital sales of games,
the slight decline in global sales being offset by a margin
improvement due to the growth in digital sales. Therefore Nacon
should exceed its target of a current operating margin (2) of 16%
for the full 2019/20 financial year.
(2) Current Operating Margin = Current Operating
Income rate = Current Operating Income as a percentage of
sales.
Outlook: a 1st quarter 2020/21
approached with confidence
The Covid-19 crisis has a double impact:
negative in the short term on the Accessories but positive on the
digital sales of games, the cumulative effect being slightly
negative in terms of turnover but positive in terms of operating
profit given the higher digital margins.
From an operations point of view, support
services and development teams have been largely asked to telework.
It has only been resorted to short-time working for employees whose
work has been suspended or deemed unsuitable for teleworking.
Procurement of accessories from Group suppliers
has returned to normal. Nacon can rely on the momentum of its
digital sales and has invested in the optimisation of its
e-commerce sites dedicated to its main product ranges.
No major delay is anticipated in the release
schedule of new games. The launch of TT Isle of Man 2 on SWITCHTM,
Tour de France, Pro Cycling Manager and Hunting Simulator 2 in the
first quarter and WRC9 in the second quarter should boost sales for
the 1st half of FY 2020/21 (from April 1 to September 30).
Further to the agreement reached with "Poly"
(Plantronics Inc.) in the last quarter of 2019/20 relating to the
purchase of its gaming headsets and the RIGTM premium brand, Nacon
will deploy RIGTM headsets in the USA and in Australia.
Nacon does not anticipate any cash-flow
difficulties in the coming months, as it has significant cash
resources related to its recent Initial Public Offering which
enabled it to raise 109 M€ in March 2020.
Finally, Nacon is maintaining the targets linked
to its "NACON 2023" plan, with sales of between €180 and €200
million and a Current Operating Margin (2) in excess of 20% for the
2022/23 financial year.
The company will disclose its targets for FY
2020/2021 while releasing its FY 2019/2020 year-end results on May
25, 2020.
(2) Current Operating Margin = Current Operating
Income rate = Current Operating Income as a percentage of
sales.
Next publication:
Annual results 2019/20: 25 May
2020Press release after close of the Paris Stock
Exchange
ABOUT NACON
|
2019-20 ANNUAL SALES129.4 M€
HEADCOUNTClose to 450 employees
INTERNATIONAL16 subsidiaries and a distribution
network across 100
countrieshttps://corporate.nacongaming.com/ |
NACON is a company of the BIGBEN Group founded in 2019 to
optimize its know-how through strong synergies in the video game
market. By bringing together its 8 development studios, the
publishing of AA video games, the design and distribution of
premium gaming devices, NACON focuses 20 years of expertise at the
service of players. This new unified business unit strengthens
NACON's position in the market, enables it to innovate by creating
new unique competitive advantages. Company listed on
Euronext Paris, compartment B ISIN : FR0013482791 ;
Reuters : NACON.PA ; Bloomberg : NACON:FP
PRESS CONTACTCap Value – Gilles Broquelet
gbroquelet@capvalue.fr - +33 1 80 81 50 01 |
- CP_Nacon_Sales_Q4_2019_20_ENG_Website
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