Atari (ATA) H2 23/24 earnings summary

Executive summary

• Revenue doubled to €20.6M for FY24, driven by acquisitions and a focus on classic gaming.

• Major acquisitions included Nightdive Studios, Digital Eclipse, GTI retro games catalog, and publishing rights for Rollercoaster Tycoon 3.

• Strategic shift towards retro gaming, hardware launches (Atari 2600+, 400 Mini), and expansion of licensing and e-commerce.

• Terminated token project, provided claims to eligible ATRI token holders, and invested in tinyBuild and Playmaji.

Financial highlights

• Revenue rose 104% year-over-year to €20.6M, with Games revenue at €14.4M (up from €7.2M).

• Hardware revenue increased to €4.2M (from €0.7M), Licensing to €1.8M (from €1.3M), while Atari X declined to €0.2M.

• Gross margin improved to €14.9M (from €7.9M), but net loss widened to €13.5M (from €9.5M).

• Operating loss was €12.8M, impacted by €3.6M impairment and €4.0M bad debt loss; excluding accelerated amortization, current operating loss would have been €3.7M.

• Net financial debt increased to €41.6M (from €6.2M), reflecting new convertible bonds and acquisition-related liabilities.

Outlook and guidance

• Plans to monetize IP across all business lines, leveraging recent acquisitions for new game releases and hardware expansion.

• Continued development of Infogrames label, new hardware launches, and expansion of licensing and Web3 initiatives.

• Selective acquisitions and minority investments to complement IP portfolio.