PRESS RELEASE: NACON: HALF-YEAR RESULTS 2021/22
November 29 2021 - 12:56PM
PRESS RELEASE: NACON: HALF-YEAR RESULTS 2021/22
Nacon
Press
release
Lesquin, 29 November 2021, 18:00 hrs
HY 1
2021/22
impacted by an unfavourable basis
comparison:
- Sales: 73.0 M€ (-15.7%)
- Current Operating Income: 8.4 M€
(-46.3%), i.e. 11,6% of sales
- Net profit: 3.8 M€ (-60.4%)
Ajustment of
2021/22
targets:
- Sales between 150 and 180 M€
- Current Operating Income close to
20 M€
Upward revision
of 2022/23
targets:
- Sales between 250 and 300 M€ with a
COI rate* > 20%
NACON (ISIN FR0013482791) today releases its
audited consolidated results for the first half of fiscal year
2021/22 (from April 1 to September 30) as approved by its Board of
directors on 29 November 2021.
Consolidated in M€ - IFRS |
09/2021 |
09/2020 |
Change |
Sales |
73,0 |
86,6 |
-15,7% |
Gross margin (1)In % of
SalesEBITDA
(2)In % of Sales |
38,052,1%21,429,3% |
45,352,3%30,435,1% |
-16,0%-29,7% |
Current operating
incomeEBITAIn % of
SalesNon recurrent items (including Bonus Shares) |
8,411,6%(4,0) |
15,718,2%(1,8) |
-46,3% |
Operating resultIn % of
Sales |
4,56,1% |
13,916,1% |
-67,8% |
Financial resultIncluding currency gain (loss) |
0,0 |
(0,8) |
|
Earnings before tax In % of
Sales |
4,56,2% |
13,115,2% |
-65,6% |
Tax |
(0,7) |
(3,6) |
|
Net result for the periodIn % of
Sales |
3,8 5,2% |
9,611,0% |
-60,4% |
(1) Gross Margin = Sales - Cost
of goods sold; other operating revenues posted between Gross Margin
and EBITDA
(2) EBITDA = Current Operating
Income before depreciation and amortization of tangible and
intangible assets
Sales
evolution penalised by a
high H1 2020/21 comparison basis
Nacon posted 73.0 M€ sales in H1 2021/22, down
15.7% on the same period last year. The H1 2020/21 business had
benefited from the exceptional momentum of the video game and
accessories market during the early lockdowns.
Video Game sales for H1 2021/22 amounted to 27.3
M€, down 16.9%, due to a lower editorial activity. The back
catalogue showed its resilience with sales of 16.2 M€ sales,
representing almost 60% of Games revenue.
Accessories sales for H1 2021/22 were 43.7 M€,
down 15.1% due to the high comparison basis and logistical
difficulties in delivering goods to US customers.
Gross Margin for H1 2021/22 was 38.0 M€ or 52.1%
of sales. Despite the sharp rise in transport costs and raw
materials over the period, the margin rate remained at a
near-equivalent level compared to H1 2020/21.
A weak editorial business and receding Accessory
sales during the half-year resulted in a drop in Current Operating
Income to 8.4 M€ or 11.6% of sales.
After deducting 4.0 M€ in expenses related to
bonus share plans and 0.7 M€ in income tax, Net Profit for the
period reached 3.8 M€ or 5.2% of sales.
A solid balance sheet and a strong
increase in investments
At the end of September 2021, shareholders'
equity amounted to 219.0 M€, up 8.5 M€ compared to the end of March
2021. Cash and cash equivalents amounted to 62.6 M€, compared with
96.7 M€ at the end of March 2021, following the acquisition of
several studios and the development of the games catalogue.
The anticipation of orders in order to secure
seasonal sales generated an increase in inventories, which had an
unfavourable impact on the change in Working Capital Requirments,
which reached (2.5 M€). Operating cash-flow for the period was 17.7
M€. Cash-flow from investments amounted to 45.6 M€, a significant
increase compared to previous periods.
Outlook:
adjustments to 2021/22 and
2022/23 targets
In order to optimise future revenues, Nacon has
decided to postpone the release of Vampire: The Masquerade®-
Swansong, Blood Bowl 3®, Train Life and Hotel Life to FY 2022/23.
This additional development time will allow the quality of the
games to be improved and thus their commercial performance. Nacon
therefore no longer anticipates the expected improvement in its
business in the 2nd half of FY 2021/22.
The second half of the year will benefit from
the release of Cricket 2022 (1.5 billion followers worldwide) and
Roguebook for consoles (PlayStation ™ et Xbox ®). It will also be
marked by the launch of the Revolution X Pro controller for
Xbox®.
Given the postponement of the release of the 4
above mentioned games, NACON is adjusting its targets:
- downward revision of the FY 2021/22
targets with sales between 150 and 180 M€ and a Current Opearting
Profit around 20 M€;
- upward revision of the FY 2022/23
targets with sales between 250 and 300 M€ and a Current Opearting
Profit rate over 20%. This new financial year will benefit from a
very strong editorial activity including more than 15 video game
releases, including, Vampire: The Masquerade®- Swansong,
SteelrisingTM, The Lord of the Rings™: Gollum™, SessionTM, Blood
Bowl 3® and Test Drive Unlimited Solar Crown. FY 2023-24 will also
benefit from this momentum again with over 15 games expected as
well as a strong growth of the back catalogue.
Completion of the acquisition of the
Ishtar Games studio
Following the fulfillment of conditions
precedent, NACON announces that it has signed the share purchase
agreement for the acquisition of 100% of the capital of Ishtar
Games on 25 November 2021.
* COI rate = Current Operating Income as a percentage of
sales
Next
publication:
Q3
2021/22
sales: 24
January
2022after closure of Paris stock
exchange
ABOUT
NACON |
2020-21
ANNUAL SALES177.8
M€ HEADCOUNTOver 700
employees INTERNATIONAL20 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 14 development studios, the
publishing of AA video games, the design and distribution of
premium gaming devices, NACON focuses 30 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_RS_2021_22 - ENG
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