PRESS RELEASE: NACON: 2019/20 ANNUAL RESULTS
Press release
Lesquin, 25 May 2020, 18 :00 hrs
Strong growth of profitability in
2019/20:
·Current Operating Profit: 22,6 M€
(+80,3%)
·Net Résult: 15,3 M€ (+41,8%)
Outlook 2020/21 :
·Sales between 140 and 150 M€
·Current Operating Profit Rate:
18%
NACON (ISIN FR0013482791) today releases its
audited consolidated results for the financial year closing on 31
March 2020 as approved by its Board of directors on 25 May
2020.
Consolidated in M€ IFRS |
03/2020 (4) |
03/2019 (3) |
Var. |
Sales |
129.4 |
113.1 |
+14.4% |
Gross margin (1) In % of Sales
EBITDA (2) In % of
Sales |
79.161.1%
48.437.4% |
62.455.2%
33.429.5% |
+26.7%
+45.0% |
Result from current operations In % of
Sales Non recurrent items (including Bonus
Shares) |
22.617.5%
(2.0) |
12.511.1%
0.8 |
+80.3% |
Operating result In % of
Sales |
20.615.9% |
13.411.8% |
+53.8% |
Financial result Including currency gain (loss) |
(0.6) |
(0.4) |
|
Earnings before tax
In % of Sales |
20.015.4% |
13.011.5% |
+53.6% |
Tax |
(4.7) |
(2.2) |
|
Net result for the period In % of
Sales |
15.311.8% |
10.89.5% |
+41.8% |
(1) Gross margin = Sales – Cost of goods
sold.(2) EBITDA = Current operating income before depreciation and
amortization of tangible and intangible assets.(3) The partial
asset contribution of the Gaming business to
Nacon by Bigben Interactive was carried out with an accounting
effect as of October 1, 2019. Assets and liabilities contributed
were recognized at their carrying amount. In order to ensure the
comparability of financial statements, comparative data is taken
from the "combined financial statements", which take into account
financial flows as well as income statement and balance sheet items
related to the Gaming business prepared from the accounting books
of Bigben Interactive and its Gaming subsidiaries. These financial
flows include acquisitions of studios from the date of
acquisition.(4) Following the creation of Nacon in July 2019 and
the start of its operations in October 2019, Nacon's consolidated
financial statements as of March 31, 2020 comprise six months of
combined financial statements for the Gaming business prepared on
the basis of the accounting records of Bigben Interactive and its
Gaming subsidiaries for the period April to September 2019, to
which the financial flows and items of the new entity for the
October 2019 to March 2020 period have been added. ‘
Strong rise in
profitability
Nacon recorded 129.4 M€ sales for its 2019/20
financial year (ending 31 March 2020), up 14.4% on the previous
financial year.
Gross margin (+26.7%) benefited from the
increase in digital sales to 48.9 M€ which represented 69% of the
Games business sales.
Thanks to a controlled increase in operating
expenses, EBITDA reached 48.4 M€, up 45.0%, and represented 37.4%
of sales.
After accounting for 25.7 M€ in depreciation and
amortization (up 23.6%, following additional investments related to
the development of new games), Current Operating Income increased
by 80.3% to 22.6 million M€. It represented 17.5% of sales, an
achievement that is higher than the 16% announced at the time of
the company's IPO.
After taking into account expenses related to
bonus share plans for 2.0 M€ posted as non-recurrent items, a
financial income of (0.6) M€ and a corporate income tax of (4.7)
M€, Net Profit reached 15.3 million M€, or 0.18 € per share (5), up
41.8% compared to the previous financial year.
Strengthened balance sheet
At March 31, 2020, Nacon's shareholders' funds
stood at 187.6 M€ compared with 67.5 M€ at March 31, 2019. They
take into account the capital increase carried out following the
company's IPO on March 4, 2020, which increased shareholders' funds
(capital and share premium) by 103 M€ after deducting the costs of
the IPO.
Thanks to the funds raised during the IPO, Nacon
had cash of €110.9 M€ at 31 March 2020. After deducting financial
debt of €68.1 M€ and excluding rental liabilities linked to IFRS
16, net debt is negative at €42.8 M€.
Outlook: continuation of the NACON 2023
plan
Nacon notes that the Covid-19 crisis no longer
has an impact on accessory sales and continues to boost digital
sales of games.
The company therefore anticipates sales of between 140 M€ and
150 M€ for the 2020/21 financial year and targets a Current
Operating Margin(6) of around 18%.
The Group is actively working on the deployment
of its "NACON 2023" plan in order to accelerate its change of size
in its two markets, Games and Accessories.
To this end, investments in new games will be
stepped up in order to optimize their quality and make them key
references in the target genres, enabling Nacon to become one of
the world's leading publishers of AA(7) games. Nacon intends to
pursue its strategy of acquiring studios in order to accelerate the
upmarket move for its games.
With the announced arrival of 5G which will
enable the advent of cloud gaming, and the deployment of the GaaS
(Game as a Service) business model which will increase the
operating life of games and generate recurrent revenues, Nacon will
also benefit from significant growth levers to boost its sales over
the next few years.
For accessories, the emphasis will be placed on
developing premium products that can be used by all types of
players, the recent acquisition of RIGTM headsets being an
illustration of this strategy.
Banking on this momentum, the Group reiterates
its financial targets for FY 2022/23 with sales between 180 M€ and
200 M€ and a Current Operating Margin (6) in excess of 20%.
Annual dividend
In accordance with its commitment to reinvest
its cash flows in the development of its activities, the Board of
Directors decided, at its meeting of May 25, 2020, not to submit to
the vote of the next Shareholders' Meeting the distribution of a
dividend in respect of the 2019/2020 financial year.
- Based on the number of shares as of March 31, 2020.
- Current Operating Income (COI) rate = Current Operating Income
as a percentage of sales = Current Operating Margin
(3) Nacon definition: All games selling
between 200,000 and 3 million units and with budgets of 1 to 20
M€.
Upcoming publication:
Sales for 1st quarter of FY 2020/2021:
Monday 27 July 2020, after close of business on Euronext
Paris stock market
ABOUT NACON
|
2019-20 ANNUAL SALES129.4 M€
HEADCOUNTOver 510 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 |
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