Nacon (NACON) H2 23/24 earnings summary

Executive summary

• Revenue (IFRS) reached €167.7M for FY 2023-24, up 7.5% year-over-year, driven by strong new game releases and accessories.

• EBITDA rose 45% to €70.9M, with net income up 37.3% to €17.5M compared to the previous year.

• Operational performance benefited from a robust release schedule, notably Robocop: Rogue City, and renewed growth in accessories.

Financial highlights

• Gross margin improved to 62.1% of revenue, up 3 points year-over-year.

• Operating income increased 20.5% to €20.9M, representing 12.5% of revenue.

• Cash flow from operations grew 54.4% to €73.1M, supported by a 27.3% rise in self-financing capacity.

• Net debt stood at €85.2M, down from €88.6M at September 2023.

• Equity increased to €263.6M as of March 31, 2024.

Outlook and guidance

• Confident in continued revenue and operating income growth for FY 2024-25, supported by a strong game and accessory pipeline.

• Fifteen new games planned for release, including Test Drive Unlimited: Solar Crown and several high-profile titles.

• Back-catalogue sales expected to benefit from recent successful launches.

• Strategic focus on racing segment with new dedicated department and premium product launches.