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PRESS RELEASE: NACON: 24.5% SALES INCREASE IN Q1 DESPITE A STRONG COMPARISON BASIS
Press release
Lesquin, 27 July 2020 18:00 hrs
24.5% sales increase in Q1 despite a strong comparison basis
·Robust growth of gaming Accessories : +134.9%
·Stronger digital sales : 80.7% of Game sales
·Surge of back catalogue : +340%
Confirmation of financial targets for FY 2020/21
IFRS – M€ |
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Non audited data
(1) Mobile and Audio sales.
Success of the RIG premium headset range and solid performance of digital gaming sales
In the first quarter of the 2020/21 fiscal year (April 1 to June 30, 2020), Nacon's sales were up by 24.5%, driven by the success of premium headsets which contributed to a sales upturn in Accessories and by the acceleration of digital sales of Games.
GAMES
Due to a strong comparison basis resulting from the release of several major titles at the beginning of the previous fiscal year, Games were down at 14.5 M€ (compared to 20.0 M€ for Q1 2019/20). Thanks to the acceleration of digital sales during the lockdown period, Nacon was able to offset the reduction in the number of new game releases with a 340% surge in back catalogue sales to 10.8 M€, an amount already equivalent to back catalogue sales for the entire 2019/20 fiscal year. Digital sales accounted for 80.7% of Games turnover.
The releases of Hunting Simulator® 2 and Pro Cycling Manager/Tour de France® 2020 over the period under review fulfilled expectations.
ACCESSORIES
Accessory sales were supported by a thriving market. With a reinforced range of accessories (Controllers, Headsets, etc.) Nacon was fully capable of meeting consumer expectations. In particular, the headset segment grew strongly thanks to the success of the RIG premium brand acquired in March 2020 and the opening of a subsidiary in the United States.
Outlook
The 2nd quarter of FY 2020/21 should confirm the upward trend in Nacon's activity.
the expected releases of 2 new games (WRC®9 and Tennis World Tour®2) will contribute to the growth of Games sales and digital sales should maintain their momentum;
gaming accessories should confirm their growth potential thanks to restocking from customers (RIGs and controllers) generating a large order backlog.
Prospects for the second half are equally promising:
the momentum of digital sales and the releases of new games (Monster Truck Championship™, Warhammer Chaosbane® on PS5TM , Handball 21TM,Werewolf: the Apocalypse® - EarthbloodTM , Rogue LordsTM and Vampire: The MasqueradeTM - Swansong) are expected to make a positive contribution to the Group's sales growth;
the new partnership with Microsoft will also enable Nacon to launch a range of controllers compatible with their new console over this period.
For the full 2020/21 fiscal year, the Group is confident in its ability to meet its annual financial targets. Therefore Nacon confirms that it will achieve sales of between €140 and €150 million and a 18% Current Operating Income (2) rate.
The Group also reiterates the financial targets of its Nacon 2023 plan, with sales for the 2022/23 fiscal year ranging between 180 M€ and 200 M€ and a Current Operating Income (2) rate in excess of 20%.
(2) Current Operating Margin = Current Operating Income rate = Current Operating Income as a percentage of sales.
Next publication:
Sales for 2nd quarter of FY 2020/2021 : 26 October 2020
Press release after close of the Paris stock exchange
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