Atari (ATA) H1 24/25 earnings summary

Executive summary

• Revenue for H1 24/25 rose 114% year-over-year to €13.7M, driven by strong Games performance and the consolidation of Digital Eclipse and Nightdive Studios.

• Net loss widened to €8.3M from €6.6M, reflecting higher R&D and amortization expenses, and non-cash intangible asset impairments.

• Major acquisitions included Intellivision trademarks, Surgeon Simulator, Transport Tycoon, Roller Coaster Tycoon 3, and Totally Reliable Delivery Service, expanding the IP portfolio.

• New hardware initiatives included the Atari 7800+ console and expansion of the Atari "Plus" platform.

• Infogrames label launched, acquiring new titles and focusing on further IP growth.

Financial highlights

• Revenue: €13.7M (H1 24/25) vs €6.4M (H1 23/24), up 114%; games revenue rose to €11.9M from €5.3M.

• Gross margin: €10.5M vs €4.7M, more than doubling year-over-year.

• Current operating loss improved to -€2.7M from -€3.4M; operating loss at -€6.2M due to impairments.

• Net loss: -€8.3M vs -€6.6M; basic EPS: -€0.019.

• Cash and cash equivalents: €2.9M at period end, increased by €0.3M during the period.

Outlook and guidance

• H2 24/25 to benefit from key releases: Tetris Forever, Mighty Morphin Power Rangers: Rita's Rewind, Atari 50: Extended Edition, RCT Classic for Switch, and The Thing Remastered.

• FY25 revenue expected to exceed FY24's €20.6M, supported by new releases and seasonal holiday effects, despite challenging industry conditions.