Lesquin, 26 October 2020 18:00
Sales for first half of FY 2020/21: 86.6 M€ (+35.9 %)
·gaming accessories: 51.6 M€ (+ 118 %)
·back catalogue: 18.0 M€ (+242%)
IFRS – M€
Non audited data
(1) Mobile and Audio sales.
Acceleration of activity growth in the 2nd quarter 2020/2021: + 46.4%.
In Q2 FY 2020/2021 (1 July to 30 September 2020), Nacon generated a 48.6 M€ turnover, up 46.4%, driven by sales of premium headsets and increased digital gaming sales.
Over the period, the Games business posted 18.3 M€ sales, up 3.0% when compared with Q2 2019/2020. The business benefited from the launch of the WRC® 9 game (Metacritic average score: 82) and the Tennis World Tour® 2 game. A significant proportion of WRC® 9 sales is expected in November with the release of the new Next Gen consoles, PlayStation®5 and Xbox Series X|S. Digital sales remained at a high level, with a strong increase in the contribution from the back catalogue (7.0 M€ compared with 2.8 M€ in Q2 2019/2020).
In Q2 2020/2021, Nacon's Accessories business recorded a stronger-than-expected growth with 29.0 M€ sales, up 106.5%, in a very active market. This achievement mainly resulted from the successful marketing of RIG headsets in the USA and sustained sales of official controllers for PlayStation®4 consoles.
A very brisk first half
Over the first half of FY 2020/2021 (from 1 April to 30 September 2020), despite a high basis of comparison in Q1 2020/2021 (several major titles were released in Q1 2019/2020), sales rose 35.9% to 86.6 M€. Over the period as a whole, the business was driven in particular by growth in digital sales of games (72% of total games sales) and by a range of accessories that benefited from strong demand for premium headsets.
Business in the second half of FY 2020/2021 (from 1 October 2020 to 31 March 2021) is expected to be bustling thanks to:
the concomitance of two generations of consoles (Current Gen: PlayStation®4 and Xbox one, and Next Gen: PlayStation®5 and Xbox Series X|S) on which Nacon will simultaneously operate almost all of its future productions;
the growth in digital sales and the release of Next Gen versions of WRC® 9, Tennis World Tour® 2, and Hunting Simulator® 2, as well as the launch of 5 new games (Warhammer: Chaosbane®, Monster Truck Championship, Blood Bowl 3, Handball 21, Werewolf: the Apocalypse® - Earthblood, Rogue Lords);
the order book for headsets from major American retailers for the Christmas season;
the release of the Revolution X and Pro Compact controller range for the new Microsoft console, and a special MG-X Series for Cloud Gaming.
Improvement expected in Current Operating Income(2) in FY first half
For the first half of FY 2020/2021, Nacon anticipates a sharp rise in Current Operating Income thanks to sales growth and tight control of operating expenses.
Annual targets and 2023 Nacon Plan
Nacon has revised upwards (press release dated 1 September 2020) its FY 2020/2021 sales target to between 150 M€ and 160 M€ and has confirmed a Current Operating Income rate(2) of 18% for this financial year.
Should the trend of good first-half results be confirmed in the coming weeks, Nacon may once again revise upwards its full-year sales target, which will be specified upon release of the 2020/21 half-year results.
Nacon also reiterates the financial targets of its Nacon 2023 plan, with sales of between 180 M€ and 200 M€ and a Current Operating Income rate(2) for FY 2022/23 in excess of 20%.
(2) COI rate = Current Operating Income as a percentage of sales = Current Operating Margin.
First-half results for FY 2020/21:
Monday 30 November 2020: Press release after close of the Paris stock exchange
Tuesday 1 December 2020: Presentation to the financial community (SFAF meeting)