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PRESS RELEASE: NACON: Q3 2020/21 Sales: 48.7 M€, + 20.3%
Press release
Lesquin, 25 January 2021 17:45hrs
Q3 2020/21 Sales: 48.7 M€, + 20.3%
·Gaming Accessories : 32.5 M€, + 59%
·Games Back catalogue : 6.9 M€, + 216%
·Confirmation of annual targets
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(1) Non audited data
(2) Mobile and Audio sales
Further strong growth in Q3 2020/21: +20.3%
In Q3 2020/21 (1 October to 31 December 2020), Nacon posted 48.7 M€ sales up 20.3%, driven by the performance of RIG® headsets and increased back catalogue sales.
GAMES
Due to Q3 publishing releases limited to just two new games targetting profitable but narrow niches (Monster Truck®, Handball 21), sales were down by 19.7%.
The share of digital sales grew further to represent 74.4% of quarterly sales.
The contribution of the back catalogue (3), a source of high margins, was up very sharply to 6.9 M€ (+ 216% compared to Q3 2019/20).
ACCESSORIES
Accessories continued their strong growth with 32.5 M€ sales up 58.7%, thanks to the growing success of RIG® headsets and sustained sales of Nacon accessories, particularly of licensed controllers and headsets.
Sales for the first nine months up 29.9%
Over the first nine months of the financial year (from 1 April to 31 December 2020), sales rose by 29.9% to 135.3 M€. This achievement resulted from strong growth in the back catalogue (3) (24.9 M€ compared to 7.5 M€ over the same period in 2019/20) and from the momentum of premium headsets in the Accessories business.
(3) back catalogue : video games released on previous fiscal years
Prospects: confirmation of targets
Nacon is again anticipating growth in Q4 2020/21 thanks to:
the highly anticipated release of Werewolf® : the Apocalypse - Earthblood, and the release of PlayStation®5 / Xbox Series X|S versions of Monster Truck®, Tennis World Tour®2 and Hunting Simulator® 2 ;
contributions from digital sales and the back catalogue;
the order book for RIG® headphones, which remains high;
the release of the first accessories dedicated to the new Xbox Series X|S console.
At the same time, the release of Blood Bowl® III, the first game in the catalogue to feature the live ops(4) model, has been postponed to the first half of 2021/22 in order to optimise its quality, satisfy this franchise’s large community and maximise the title's commercial potential.
Despite this postponement, Nacon is confident that it will achieve its annual targets: sales are expected to be at the top end of the 160-170 M€ forecast range with an 18% COI rate(5).
Nacon has also just announced the signature of an exclusive agreement for the acquisition in full of its 10th studio, the Australian company Big Ant, an expert developer of individual and team sports games (tennis, rugby, cricket, etc.). This transaction considerably strengthens this mainstay of Nacon's portfolio by giving it exclusive access to Big Ant's productions in this strategic segment.
Dedicating all of its available funds to the acquisition of studios and game development, Nacon therefore confirms that no dividend will be paid for the 2020/21 financial year.
Nacon also reiterates the financial targets of its Nacon 2023 plan, with sales of between 180 M€ and 200 M€ and a COI rate(5) in excess of 20% for the 2022/23 financial year. The sales target will probably be revised upwards when the annual results are published on 31 May 2021.
(4) Extension of the game's commercial life after its launch via animations and micro-transactions.
(5) COI rate = Current Operating Margin
Next publication:
Q4 2020/21 sales: 26 April 2021,
Press release after close of the Paris stock exchange
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