Lesquin, May 30, 2022 6:00 p.m.
RRESULTS IN LINE WITH EXPECTATIONS:
- Turnover: €275.7 million
- CURRENT OPERATING INCOME: €21.0 M
AMBITIOUS OBJECTIVES FOR 2022-23 DRIVEN BY GAMES MOMENTUM
- SALES OF €400M
- CURRENT OPERATING PROFIT OVER €55 M
BIGBEN INTERACTIVE (ISIN FR0000074072) publishes today its audited consolidated results for the 2021/22 financial year (from April 1, 2021 to March 31, 2022) as approved by its Board of Directors on May 30, 2022.
|Consolidated in M€ IFRS||2021-22||2020-21||To change|
|Current operating income running
As a % of sales
In % Sales
|Profit before tax
As a % of sales
|net networkresults for the period
As a % of sales
Results in line with the announced objectives
The Bigben group achieved revenue of €275.7 million for the 2021-22 financial year, down 5.8% compared to the previous year. This change is mainly due to 3 factors:
- A 2020-21 financial year which had benefited from an exceptional level of activity from Nacon Gaming in connection with the first confinements.
- Less sustained editorial activity, Nacon Gaming having decided to postpone several game releases to the 2022-23 financial year, in particular the highly anticipated Vampire: The Masquerade® – The Swan Song Title.
- Global tensions over the supply of consoles and smartphones.
The Gross Margin reached €109.2 million or 39.6% of turnover, thanks to rigorous management of transport and increases in raw materials.
Current Operating Income was €21.0 million, at the top of the target range of €19-21 million.
Net income for the period amounted to €10.3 million, or €0.53 per share (1)demonstrating the Group’s resilience in an unfavorable environment.
ach analysisI seements by business units
|NACON-GAMING||BIGBEN – AUDIOVIDEO/TELCO|
|Consolidated in M€ IFRS||2021-22||2020-21||To change||2021-22||2020-21||To change|
|In % Sales||49.9%||52.6%||26.2%||24.6%|
|As a % of sales||28.6%||33.9%||4.seven%||6.3%|
|Current operating income||19.0||32.5||-41.6%||2.0||3.seven||-46.1%|
|As a % of sales||12.2%||18.3%||1.seven%||3.2%|
Nacon Gaming achieved a turnover of €155.9 million in a full year. The Games activity, due to the decision to postpone the release of several games to the 2022-23 financial year, amounted to €54.4 million (-21.1%). The Accessories business held up well in a context of shortage of consoles and ended the year at €96.6 million (-6.3%).
The gross margin is €77.8 million, or 49.9% of turnover (52.6% in N-1). This change is explained by a different product mix from the previous year, with a greater share of accessories (62% of total sales compared to 58% the previous year). The rise in selling prices made it possible to offset the rise in transport and raw material costs and thus to maintain the margin rate of the accessories business.
Thanks to stable overheads, current operating profit for the year reached €19.0 million, or 12.2% of sales.
Bigben – AudioVideo/Telecom generated revenue of €119.8 million, up 4.2%. Annual sales benefited from the absence of original chargers and pedestrian kits (2) of most new smartphone shipments.
A product mix geared towards premium brands helped improve the gross margin to 26.2% of sales (vs. 24.6% in 2020/21).
Current Operating Income for the year amounted to €2.0 million. The entry of Metronic into the Group’s scope of consolidation temporarily weighed on the Group’s results, with future synergies expected in the 2022-23 financial year.
A solid financial structure including major investments in the Gaming business
As of March 31, 2022, Bigben has a solid balance sheet structure with €299.7 million in equity and €126.4 million in cash. Net debt thus stood at €53.7 million at the end of the year, i.e. a gearing of 18% (3).
The increase in anticipation stocks had a negative impact on the working capital requirement, which increased by €12.1 million. Operating cash flow for the period was positive at €35.6 million. Cash flow from investing activities (mainly studio acquisitions and game development costs) reached €94.3 million.
(1) Based on number of shares at March 31, 2022
(2) Headsets refer to wired headphones for smartphones
(3) excluding IFRS 16 lease debt and earn-ohUtahs ohnot acquisitions
Ambitious 2022-23 objectives driven by expected strong growth in the game business
After a year of transition marked by an unprecedented global economic context, Nacon will benefit in fiscal year 2022-23 from the significant investments made in recent years: over the past two years, Nacon has invested more than €100 million in game development and acquired nine studios. To date, 46 games are in development, compared to 33 as of March 31, 2021. The first returns on investment are expected in the current financial year with the release of many games.
Due to the strong editorial activity expected throughout the year (Vampire: The Masquerade® – Swansong, Lord of the Rings Gollum, Steelrising, Session Skate Sim, etc.), sales will be growing strongly with a marked increase in the first quarter. Nacon has decided to postpone Road test Unlimited Sun Corona to the next exercise in order to perfect the quality while aiming for an exit only in computer, PlayStation®5 and Xbox® X|S-Series sizes. This postponement does not call into question the annual objectives and should ensure continued growth in the 2023-24 financial year.
The Accessories business is still penalized by the global shortage of components but will see the release of several new products in Q3 2022-23.
Bigben AudioVidéo/Telco’s activity in 2022-23 will be marked by:
– growth in sales of the energy range and headphones, linked to the launch by manufacturers of new ranges of smartphones without chargers and pedestrian kits (2).
– an acceleration of the deployment of the 5G network accompanied by a renewal of the mobile telephone fleet, which will benefit “accessory” sales
– the full-year integration of Metronic and the positive impact of the synergies that are gradually being put in place.
In this context, the Bigben group is now aiming for revenue of €400 million for the 2022-23 financial year with current operating income of more than €55 million.
In view of the trends expected in the coming months, the Board of Directors of Bigben Interactive decided at its meeting of May 30, 2022, to submit to the vote of the General Meeting to be held on July 22, 2022:
- The payment of a cash dividend of €0.30 per share for fiscal year 2021-22;
- A distribution in kind in the form of Nacon shares at the rate of one (1) Nacon share for four (4) Bigben Interactive shares held, representing approximately 5.4% of Nacon’s share capital to date.
Subject to the approval of the Annual General Meeting on the foregoing, the ex-date and the payment dates for the cash dividend and the distribution in kind of Nacon shares should take place within two weeks following the date of the Annual General Meeting.
Bigben Interactive will issue a detailed press release when convening the Ordinary General Meeting specifying the technical terms of the distribution in kind of Nacon shares.
Gross Margin = Sales – Cost of Goods Sold
EBITDA = Current operating profit before depreciation of tangible and intangible fixed assets
ROC rate = Current Operating Income as a percentage of revenue = COM (Current Operating Margin)
Events to come:
Aannual general meeting: Friday 22 July 2022
Q1 2022-23 sbeers: Monday 25 July 2022, Press release after the closing of the Euronext Paris stock exchange
Bigben Interactive is a European player in the development and publishing of video games, the design and distribution of accessories for smartphones and games as well as audio-video products. The Group, recognized for its capacity for innovation and creativity, intends to become one of the European leaders in each of its markets.