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Focus Entertainment Announces its FY 2021/22 Earnings, Slightly Above Expectations, and Key Achievements on Its Strategic Roadmap

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PARIS, June 16, 2022--(BUSINESS WIRE)--Regulatory News:

FOCUS ENTERTAINMENT (FR0012419307 - ALFOC) (Paris:ALFOC) announces its 2021/22 audited earnings for the full year ending March 31, 2022.

Key highlights:

  • FY 2021/22 Revenue standing at €142.6 million, €136.9 million at constant perimeter

  • FY 2021/22 EBITA1 slightly above the expectations at €13.2 million

  • FY 2021/22 EBITDA at €42.1 million maintaining a 30% EBITDA margin

  • Confirmed strategy to move up the value chain and be a developer/publisher, supported by the most ambitious ever line-up of new games over the next 3 years

FY 2021/22 Results

Audit reports not yet issued

French GAAP - Audited

FY

FY

Var.

In million euros

2021/22

2020/21

Revenue

142,6

171,0

-17%

Gross margin

42,2

51,1

-17%

% of revenue

30%

30%

-.3 pts

EBITA1

13,2

24,8

-47%

% of revenue

9%

15%

-5.3 pts

Amortization of goodwill

(4,0)

EBIT

9,1

24,8

-63%

% of revenue

6%

15%

-8.1 pts

Financial income (expenses)

(1,7)

(1,7)

3%

Exceptional income (expenses)

(1,3)

(3,0)

-57%

Income tax

(3,0)

(6,8)

-56%

Minority interests

(0,1)

-

Group net income

3,0

13,3

-78%

% of revenue

2%

8%

-5.7 pts

EBIT

9,1

24,8

-63%

D&A and provisions

(33,0)

(25,7)

30%

EBITDA

42,1

50,5

-16%

% of revenue

30%

30%

.0 pts

2021/22 Revenue at €142.6 million

After FY 2020/21 during which the video game industry benefited from the worldwide lockdown, Focus Entertainment FY 2021/22 revenue reached €142.6 million, including a €5.6 million contribution from Dotemu. In terms of revenue breakdown 88% of the sales were made through digital partners and 95% are derived internationally.

At constant perimeter, revenues for the full-year 2021/22 amount to €136.9 million.

SnowRunner, Insurgency: Sandstorm and A Plague Tale: Innocence strongly contributed to the fiscal year revenues thanks to additional contents and one-off deals, demonstrating the Group’s ability to generate revenues from strongly anchored franchises and titles over the long-term. The fiscal year benefited as well from the performance of Necromunda: Hired Gun developed by Streum On, a Focus Entertainment studio, and of Aliens: Fireteam Elite.

FY 2021/22 EBITA at €13.2 million slightly above expectations, maintained 30% EBITDA margin

FY 2021/22 Gross Margin reached €42.2 millions of euros, a 30% gross margin comparable to FY 2020/21 despite (i) an unfavorable basis effect with record sales registered over FY 2020/21 and (ii) the accelerated amortization of two games during the exercise.

FY 2021/22 EBITA amounted to €13.2 millions of euros slightly above expectations, reflecting the decrease in revenues and gross margin evolution. Sales and marketing expenses were driven up by the higher number of launches over the year. Nonetheless, it benefited from a tight cost control on general and administration expenses that decreased by -3% representing 6% of total revenues.

Amortization of Goodwill amounted to €(4.0) million over FY 2021/22.

FY 2021/22 Financial Result mainly consisted in interest expenses linked to the debt raised in July 2021, amounting to €(1.7) million.

FY 2021/22 EBIT stood at €9.1 million.

The Group Net Income for the full year 2021/22 reached €3.0 million.

EBITDA reached €42.1 million for the full fiscal year 2021/22, representing a 30% EBITDA margin in line with the 2020/21 fiscal year.

Cash-Flows

The Group has invested €35 million in the development of new games over the year, compared to a €39.5 million game investment over FY 2020/21. It is worth noting that due to game delays during the year, some milestone payments have been postponed to 2022/23. After financing the game development, operating cash flows stands at €(8.6) million over FY 2021/22.

Focus Entertainment pursued over the year its external growth strategy to expand and diversify its expertise towards new high-potential segments. After acquiring Deck13 Interactive in 2020, the Group completed the acquisition of four additional studios: Streum On Studio, Dotemu, Douze Dixièmes and lastly, Leikir Studio on February 14, 2022. These acquisitions represented a disbursement of €59.1 million.

In the meantime, the Group secured significant financial resources, raising capital in May 2021 for a net amount of €68.8 million and banking debt for €130 million of which €52 million net amount has been drawn as of March 31, 2022.

As of March 31, 2022, cash and cash equivalent represented €62.6 million.

Outlook: Confirmed strategy to move up the value chain supported by the most ambitious ever line-up of new games

Focus Entertainment aims at building a federation of talents and become a Worldwide Leading Integrated Video Game player. The strategy of the Group is to move up the value chain, shifting from publisher/distributor to developer/publisher, and thus to increase the share of owned IP in its portfolio, with a long-term objective to reach 50% of its revenue coming from own IP games.

Christophe Nobileau, Chief Executive Officer, comments "Over the next three years, Focus Entertainment will benefit from the most ambitious line-up of games ever. We expect to launch 31 games by March 2025. Out of the lifetime revenue expected from these games, 30% is expected to come from games whose IP is owned (15%) or co-owned (15%) by Focus Entertainment."

In the nearer term, after a very successful PC early-access, Hardspace: Shipbreaker has been launched on PC on May 24th and around 500,000 copies have been sold so far. Today, Dotemu, releases the long-awaited Teenage Mutant Ninja Turtles: Shredder’s Revenge. Coming next, Evil West, a new franchise developed by Flying Wild Hog, will be launched for both consoles and PC on September 20th, 2022. Later in the year, the sequel to the multi-million seller A Plague Tale: Innocence will be released, A Plague Tale: Requiem, developed by Asobo, a worldwide renown studio.

In addition, an ambitious game developed by Deck13 Interactive, a Focus Entertainment Studio, will be released at the end of the fiscal year 2022/23. Lastly, at the Summer Game Fest held on June 9th, Focus Entertainment revealed Aliens: Dark Descent a project developed by Tindalos Interactive and based on the iconic movie license, that will be released in 2023.

John Bert, Managing Director, comments: "We have very ambitious and exciting new projects to be launched over the coming months at Focus Entertainment. In the meantime, we will also rely on our solid back-catalogue and keep on delivering new content through live ops over 2022/23 on existing titles. In addition to this short-term line-up, we are proud to have secured key partnerships with renown studios whilst keeping investing in our own IP, paving the way for future growth."

Financial calendar

Q1 2022/23 Sales will be published on July 21th, 2022.

2021/2022 Annual Financial report, including CSR report, will be released on July 29th, 2022, and posted on the company's website.

Event

Date

2022/23 – Q1 Sales

2022/23 – Annual General Meeting

2022/23 – Q2 Sales

2022/23 – Half-Year Results

2022/23 – Q3 Sales

2022/23 – Q4 Sales and FY Sales

Thursday July 21, 2022

Thursday September 22, 2022

Thursday October 20, 2022

Thursday December 15, 2022

Thursday January 19, 2023

Thursday April 20, 2023

About Focus Entertainment

FOCUS ENTERTAINMENT is one of Europe’s leading video game publishers and developers. Its vocation is to support leading international studios in the development, production monitoring, marketing, sales and financing of their projects. As a publisher of strong brands such as The Surge, Vampyr, and A Plague Tale: Innocence, the Group generated revenues of €142,6 million in 2021/22. FOCUS ENTERTAINMENT generates 95% of its sales internationally. For additional information, visit www.focusent.com

For more information follow us on:
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APPENDICES

CONSOLIDATED INCOME STATEMENT – AUDITED
Audit reports not yet issued

(in millions of euros)

FY 2021 2022
31/03/2022

FY 2020 2021
31/03/2021

Variation %

Revenue

142,6

100%

171,0

100%

-17%

Gross margin

42,2

30%

51,1

30%

-17%

Production costs

(7,7)

-5%

(7,4)

-4%

3%

Sales and marketing expenses

(13,1)

-9%

(10,3)

-6%

27%

General and administration expenses

(8,4)

-6%

(8,6)

-5%

-3%

Other operating income (expenses)

0,1

0%

0,1

0%

EBITA1

13,2

9%

24,8

15%

-47%

Amortization of goodwill

(4,0)

EBIT

9,1

6%

24,8

15%

-63%

Financial income (expenses)

(1,7)

(1,7)

Exceptional income (expenses)

(1,3)

(3,0)

Income tax

(3,0)

(6,8)

Consolidated net income

3,1

2%

13,3

8%

-77%

Minority interests

(0,1)

-

Group net income

3,0

2%

13,3

8%

-78%

EBIT

9,1

24,8

-63%

D&A and provisions

(33,0)

(25,7)

30%

EBITDA

42,1

30%

50,5

30%

-16%

[1] EBITA: Adjusted EBIT, EBIT before amortization and depreciation of goodwill

CONSOLIDATED BALANCE SHEET – AUDITED
Audit reports not yet issued

(in millions of euros)

31/03/2022

31/03/2021

ASSETS

Intangible assets

81,1

67,7

Goodwill

68,7

6,2

Property, plant & equipment

0,8

0,7

Financial assets

1,2

1,4

Total Non-Current Assets

151,9

76,0

Inventory and works in progress

0,9

1,5

Trade receivables

13,4

15,4

Other receivables, accruals and deferrals

22,4

6,7

Investment securities

0,6

-

Cash and cash equivalents

62,0

19,5

Total Current Assets

99,2

43,1

Total Assets

251,0

119,2

EQUITY & LIABILITIES

Capital

7,8

6,4

Share premium

90,2

22,4

Reserves

32,7

26,5

Profit(loss) for the year

3,0

13,3

Total Equity (attributable to the group)

133,7

68,5

Minority Equity

1,6

-

Provisions

0,9

1,7

Borrowings and financial debt

66,1

12,5

Trade payables

19,0

23,4

Other payables, accruals and deferrals

29,7

13,0

Total Liabilities

251,0

119,2

CONSOLIDATED CASH FLOWS – AUDITED
Audit reports not yet issued

CASH FLOWS

31/03/2022

31/03/2021

(in millions of euros)

Net income of consolidated companies

3,1

13,3

Net change in D&A and provisions

33,1

25,8

Gains (losses) from disposals

0,0

0,0

Interests charges

0,6

-

Intangible assets acquisition

(36,4)

(40,2)

Change in deferred taxes

0,3

(0,5)

Change in working capital

(9,3)

(1,7)

Operating cash flow

(8,6)

(3,3)

Purchases of property, plant, equipment and financial assets

(0,4)

(1,4)

Other purchases net of disposed financial assets

0,3

-

Net cash resulting from acquisitions of subsidiaries

(59,1)

(6,2)

Investing cash flow

(59,2)

(7,6)

Capital increase

68,8

0,1

Debt increase/(decrease)

50,0

10,8

Other changes in shareholders’ equity

(7,9)

0,0

Financing cash flow

110,9

10,9

Effect of exchange rate changes

0,0

(0,2)

Net Increase (decrease) in cash and cash equivalents

43,1

(0,1)

Cash and cash equivalents at beginning of period

19,5

19,6

Cash and cash equivalents at end of period

62,6

19,5

1 EBITA: Adjusted EBIT, EBIT before amortization and depreciation of goodwill

View source version on businesswire.com: https://www.businesswire.com/news/home/20220616005717/en/

Contacts

Investor Relations
Laure d’Hauteville
Tél : + 33 (0) 1 55 26 85 00
Mail : IR@focusent.com

Press Relations
Clémence Bigeon
Tél : + 33 (0) 1 55 26 85 00
Mail : Clemence.BIGEON@focusent.com

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