- Revenue standing at an all-time high of €194.1 million, +36%
YoY
- Record EBITA1 at €28.4 million, above market consensus
- EBITDA2 at €60.3 million driven by an improved 37% Gross
Margin3 rate
- Continuous investments fueling future organic growth while
delivering positive operating cash flow
Regulatory News:
FOCUS ENTERTAINMENT (FR0012419307 - ALFOC) announces its
2022/23 (audited, audit report not yet issued) results for the full
year ending March 31, 2023.
Revenue standing at an all-time high of €194.1
million.
Full year 2022/23 revenue reached a historical high of €194.1
million, at the higher end of the expected range published by the
Group, in comparison with €142.6 million for the same period
2021/22. FY 2022/23 revenue represented a total growth of +36.2%
compared to FY 2021/22 and was mostly driven by the performance of
six major titles.
Four of these games have been released during the year and
confirm the AA and indie strategic positioning and the high-quality
experience of Focus’ games: A Plague Tale: Requiem, Evil
West and Teenage Mutant Ninja Turtles: Shredder’s
Revenge – the latter coming from the successful acquisition of
Dotemu. Lastly, developed by Mundfish and released during the last
quarter of the fiscal year, Atomic Heart has performed above
the Group’s initial expectations.
Two other games have also proven their long-lasting revenue
contribution thanks to additional sales generated by live content
updates made available to gamers: SnowRunner, released in
April 2020, and Insurgency: Sandstorm, released back
in December 2018.
In addition, Focus Entertainment is very proud to be ranked 4th
position in the Metacritic 2023 Annual Video Game Publisher
Rankings behind Sony, Paradox Interactive, and Activision
Blizzard.
Highest operational profit ever: EBITA at €28.4 million,
above market consensus and strong improvement in EBITDA at €60.3
million.
FY 2022/23 Gross Margin reached €72.6 million, a substantial
improvement compared to FY2021/22 (37% vs. 30%), driven by the
performance of six major titles.
Sales and marketing costs were driven by a higher number of
releases (11 this year versus 8 in 2021/22) alongside an increased
average spend per game (in particular for Atomic Heart, which
benefited from an significant marketing budget), while general and
administration expenses rose, boosted by the strengthening of
production, marketing and data teams to support the Group’s
ambitions, and by the impact of the integration of the studios
acquired since September 30, 2021.
FY 2022/23 EBITA amounted to €28.4 million, a 15% margin,
reflecting the increase in revenue and gross margin evolution. This
EBITA margin represents a remarkable achievement for Focus
Entertainment, with profitability rate at its highest ever while
supporting the evolution of the Group’s strategy and the
significant strengthening of its organization.
EBITDA reached €60.3 million for the full fiscal year
2022/23, representing a 31% EBITDA margin, a slight improvement
over the 2021/22 fiscal year. Amortization of Goodwill and
intangible assets identified in connection with business
combinations amounted to (€9.3) million for FY 2022/23.
FY 2022/23 interest expenses linked to the debt raised since
July 2021 are the main constituents of the financial result of
(€3.3) million, while income tax amounted to (€5.3) million.
The Group Net Income for FY 2022/23 reached €7.3 million.
FY 2022/23 Consolidated Financial Results followed by
Management (closed March 31, 2023) – Audited.
Audit report not yet issued.
(in millions of euros)
FY 2022 2023
31/03/2023
FY 2021 2022
31/03/2022
Variation %
Revenue
194.1
100%
142.6
100%
36%
Gross margin3
72.6
37%
42.2
30%
72%
Production costs
(12.3)
(7.7)
60%
Sales and marketing costs
(23.6)
(13.1)
79%
General and administration expenses
(10.0)
(8.4)
19%
Other operating income (expenses)
1.7
0.1
EBITA1
28.4
15%
13.2
9%
116%
Amortization of goodwill and of intangibleassets identified through
business combination
(9.3)
(4.0)
131%
Financial income (expenses)
(3.3)
(1.7)
94%
Exceptional income (expenses)
(0.2)
(1.3)
-85%
Income tax
(5.3)
(3.0)
76%
Consolidated net income
10.3
5%
3.1
2%
235%
Minority interests
(3.0)
(0.1)
Group net income
7.3
4%
3.0
2%
145%
EBITA
28.4
15%
13.2
9%
116%
D&A and provisions
(31.9)
(29.0)
10%
EBITDA2
60.3
31%
42.1
30%
43%
Cash-Flow – significant investment in games and positive
operating cash flow
This record performance was supported by increased investments
in games: in 2022/23, the Group invested €65.1 million in the
development of new games, compared to €35 million in the previous
year.
After financing the development of games, operating cash flows
stood at €2.1 million over FY 2022/23.
Disbursements related to external growth represent €5.5 million
over the fiscal year, notably with the acquisition of the Dutch
studio BlackMill Games (focusing on owned IP games with its WW1
Game Series) and the integration of an influencer agency.
As of March 31, 2023, cash and cash equivalents represented
€72.2 million, and net debt amounted to €27.3 million (including
cash, financial debt and highly probable earnouts which should, for
the most part, be disbursed in the first half of 2023/24). At the
end of the financial year, the group had a total of €60.5 million
in confirmed, undrawn credit lines.
Post-closing, the initial payment for the Dovetail Games
transaction (closed on April 20) was made, as well as the drawdown
of a €20 million line of credit intended to finance part of the
acquisition. It should be noted that probable earnout payments
associated with this transaction should be paid before the end of
the financial year.
Outlook – Confidence for FY 2023/24, most ambitious line-up
ever & two new growth initiatives
The group reiterates its strategy to move up the value chain
based on its two pillars: development and publishing. Fueled by
increased investments in games, the objective of the Group is to
release 46 games over the next 3 years, with growing revenues
generated from 24 owned/co-owned IP games.
Focus Entertainment is fully committed and confident in
executing its line-up for the FY 2023/24. After the successful
launch of Warhammer 40,000: Boltgun (May 23rd, 2023, with a
score of 93 on Steam Userscore), further launches are planned,
initially in June with Aliens: Dark Descent developed by
Tindalos, then with the fully owned IP, Atlas Fallen (studio
Deck 13) scheduled for August 2023, and later in the second half of
the fiscal year with major titles like Banishers: Ghosts of New
Eden, a new co-owned IP franchise with Don't Nod, and
Warhammer 40,000: Space Marine 2.
In addition, today the Group announces the signing of three
new games with Saber, including a new franchise co-developed and
co-owned with Saber. These three games, published by Focus
Entertainment, will be multi-player and will benefit from
additional content from launch.
Additional growth initiatives
For the first time in its history, Focus Entertainment is
joining forces with industry veterans François ALAUX, Olivier BLIN
and Thomas PAINCON to create CARPOOL studio,
dedicated to the development of an ambitious multiplayer Game as a
Service (GaaS) title based on a new Intellectual Property.
In parallel, today the Group announces the launch of Focus
Production, a new movie & TV series production company,
whose objective is to offer a new service to leverage gaming IPs
from internal and external studios via partnerships with senior
production companies who will also produce standalone projects.
Fabrice Larue, Chairman and Chief Executive Officer of Focus
Entertainment, comments: "Fiscal year 2022/2023 was a record year
for Focus Entertainment. We can be very proud of the games launched
by the Group, their quality and their commercial performance. I
would like to thank all the Focus Entertainment teams for this
collective teamwork. Their expertise, their passion and their
commitment have been crucial in achieving these results and
offering the best gaming experience to our players. These are the
results of our strategy, and I confirm our desire to continue
moving up the value chain. In the near term, this means delivering
our ambitious line-up and adding new studios and innovative
services. I am confident in our ability to continue the
transformation of Focus Entertainment and executing on our
strategy."
Focus Entertainment Financial Calendar
Publication
Date
2023/24 – Q1 Revenues
July 20, 2023
Annual General Shareholders
Meeting
September 12, 2023
About Focus Entertainment
About Focus Entertainment FOCUS ENTERTAINMENT is one of Europe’s
leading video game publishers and developers. As a publisher of
strong brands such as The Surge, SnowRunner, A Plague Tale, Atomic
Heart, and Evil West, its vocation is to support leading French and
international studios in the development, production monitoring,
marketing, sales and financing of their projects. FOCUS
ENTERTAINMENT generates 95% of its sales internationally. The Group
generated revenues of €194.1 million in 2022/23. For additional
information, visit www.focusent.com
For more information follow us on: Twitter -
LinkedIn - Instagram - YouTube - Facebook
APPENDICES – FRENCH GAAPS
CONSOLIDATED INCOME STATEMENT – AUDITED
Audit reports not yet issued
(in millions of euros)
FY 2022 2023
31/03/2023
FY 2021 2022
31/03/2022
Variation %
Revenue
194.1
100%
142.6
100%
36%
Cost of Sales
(90.4)
(71.7)
26%
Development costs
(32.5)
(29.5)
10%
Othe income (expenses)
0.0
0.9
-95%
Production costs
(12.3)
(7.7)
60%
Sales and marketing costs
(23.6)
(13.1)
79%
General and administration costs
(10.0)
(8.4)
19%
Other operating income (expenses)
0.8
0.1
572%
Operating income before goodwill amortization
26.2
14%
13.2
9%
99%
Amortization of goodwill
(8.0)
(4.0)
Income of integrated companies
18.3
9%
9.1
6%
100%
Financial income (expenses)
(3.3)
(1.7)
94%
Exceptional income (expenses)
(0.2)
(1.3)
-85%
Income tax
(4.4)
(3.0)
47%
Shares of equity affiliates
(0.0)
-
Consolidated net income
10.3
5%
3.1
2%
235%
Minority interests
(2.9)
(0.1)
Group net income
7.3
4%
3.0
2%
145%
CONSOLIDATED BALANCE SHEET – AUDITED
Audit reports not yet issued
(in millions of euros)
31/03/2023
31/03/2022
ASSETS
Intangible assets
118.3
81.1
Goodwill
71.8
68.7
Property, plant & equipment
0.7
0.8
Financial assets
1.2
1.2
Total Non-Current Assets
192.0
151.9
Inventory and works in progress
0.9
0.9
Trade receivables
27.4
13.4
Other receivables, accruals and deferrals
14.2
22.4
Financial futures instruments
0.5
-
Cash and cash equivalents
72.2
62.6
Total Current Assets
115.1
99.2
Total Assets
307.1
251.0
(in millions of euros)
31/03/2023
31/03/2022
EQUITY & LIABILITIES
Capital
7.8
7.8
Share premium
90.3
90.2
Reserves
35.0
32.7
Profit(loss)
7.3
3.0
Total Equity (attributable to the group)
140.3
133.6
Minority Equity
5.7
1.6
Provisions
0.8
0.9
Borrowings and financial debt
83.1
66.1
Trade payables
35.2
19.0
Financial futures instruments
0.0
-
Other payables, accruals and deferrals
42.0
29.7
Total Liabilities
307.1
251.0
CONSOLIDATED CASH FLOWS – AUDITED
Audit reports not yet issued
CASH FLOWS
FY 2022/23
FY 2021/22
(in millions of euros)
31/03/2023
31/03/2022
Net income of consolidated companies
10.3
3.1
Net change in D&A and provisions
41.1
33.1
Gains (losses) from disposals
0.1
0.0
Financial charges
2.8
0.6
Intangible assets acquisition
(65.1)
(36.4)
Change in deferred taxes
(0.3)
0.3
Change in working capital
13.1
(9.3)
Net cash provided by (used in) operating activities
2.1
(8.6)
Purchases of property, plant, equipment and financial assets
(0.4)
(0.4)
Other purchases net of disposed financial assets
(0.0)
0.3
Net cash resulting from change in perimeter
(5.5)
(59.1)
Investing cash flow
(5.9)
(59.2)
Capital increase
0.0
68.8
Debt increase/(decrease)
14.2
50.0
Other changes in shareholders’ equity
(0.9)
(7.9)
Financing cash flow
13.4
110.9
Effect of exchange rate changes
0.0
0.0
Net Increase (decrease) in cash and cash equivalents
9.6
43.1
Cash and cash equivalents at beginning of period
62.6
19.5
Cash and cash equivalents at end of period
72.2
62.6
1 EBITA: The Group defines adjusted EBIT ("EBITA") as income of
integrated companies., before amortization of goodwill, before
amortization of intangible assets identified in a business
combination, plus R&D / video games tax credit
2 EBITDA: The Group defines EBITDA as the EBITA before
depreciation, amortization and operating reserves
3 Gross Margin: The Group defines its gross margin as the
difference between revenues, cost of sales and game development
costs. It does not include the amortization of intangible assets
identified through business combination
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230615601547/en/
Investors Relations Laure d’Hauteville Ph: + 33 (0) 1 55
26 85 00 E-mail: IR@focusent.com
Press Relations Clémence Bigeon Ph: + 33 (0) 1 55
26 85 00 E-mail: Clemence.BIGEON@focusent.com
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