Lesquin, November 29, 2021 6:00 p.m.
Uunfavorable basis of comparison for the 1H1 2021 /22 :
- Turnover: â¬ 124.2m (-8.5%)
- Current Operating Profit: â¬ 9.9 M (-41.6%) or 8.0% of revenue
- Net income: â¬ 6.9m (-28.6%)
Adjustment of 2021/22 targets:
- Sales between 270 and 300 M â¬
- Current Operating Profit of around â¬ 24m
Improved 2022/23 targets:
- Sales between 400 and 450 M â¬ with a Current Operating Margin (1) > 14%
BIGBEN INTERACTIVE (ISIN FR0000074072) today publishes its consolidated results for 1st Semester 2021-22 (from April 1, 2021 to September 30, 2021) as approved by its Board of Directors on November 29, 2021.
|Consolidated in â¬ m – IFRS||09/ 2021||09/ 2020||Switch|
|Gross margin (1)
In% of sales
|current operating income
In% of sales
In% of sales
incl. Exchange rate gain /(loss)
incl. gain/(loss) to Bond problem
Profit before tax
|Net income for the period
In% of sales
|of who minority interests||0.9||2.2|
(1) COI rate = Current operation Income as a percentage of sales = Current Operating Margin
(2) Gross margin = Sales – Cost of goods sold; Other exploitation products posted between Gross margin and EBITDA
(3) EBITDA = Current Operating income before depreciation of tangible and intangible assets
Performance cushioned by a high basis of comparison in the first half of 2020/21is
Bigben achieved a turnover of â¬ 124.2m in H1 2020/22, down 8.5% compared to the same period last year. H1 2020/21 activity benefited from the exceptional momentum of Nacon Gaming during the first lockdowns and from denser editorial content.
The H1 2021/22 Gross Margin amounted to â¬ 51.4 million, or 41.4% of sales. The margin rate is only slightly lower than that of H1 2020/21, reflecting good control of the transport and raw materials crisis.
Current Operating Profit was down 41.6% to â¬ 9.9 million, resulting in a margin of 8.0%. This change is mainly linked to the decrease in activity of Nacon Gaming.
After taking into account in particular the non-recurring charges related to the free share allocation plans, a positive financial result due to the half-yearly revaluation of the IFRS entries of the bond loan, the Net result for the period reached 6, â¬ 9 million or 5.6% of turnover.
Analysis of thatHelloelements by business unit
|NACON-GAMING||BIGBEN – AUDIOVIDEO / TELCO|
|Consolidated in â¬ m – IFRS||09/ 2021||09/ 2020||Switch||09/ 2021||09/ 2020||Switch|
|Raw Margin (2)||38.0||45.3||-16.0%||13.4||12.0||+ 11.4%|
|In% of sales||52.1%||52.3%||26.1%||24.4%|
|EBITDA (3)||21.4||30.4||-29.7%||3.2||2.9||+ 7.1%|
|In% of sales||29.3%||35.1%||6.2%||6.0%|
|Running Operating Returned||8.4||15.7||-46.3%||1.4||1.2||+ 20.4%|
|In% of sales||11.6%||18.2%||2.8%||2.4%|
Nacon – Game published in 1H1 2021-22 â¬ 73.0 million in revenue, down 15.7% compared to the same period of the previous fiscal year. Games sales were â¬ 27.3 million, down 16.9% due to lower editorial activity. The back catalog has shown resilience with a turnover of â¬ 16.2 million. Accessories sales amounted to â¬ 43.7 million, down 15.1% due to a high comparison base and logistical difficulties in North America.
The 1H1 2021-22 margin reached â¬ 38.0 million, or 52.1% of sales. Despite the sharp increase in transport and raw material costs, the margin rate remains virtually unchanged compared to H1 2020/21. The weakness of the editorial activity of the Games and the fall in sales of Accessories recorded in this first half of the year resulted in a drop in Current Operating Income to â¬ 8.4 million, or 11.6% of turnover.
Bigben – Audio video/ Telco growth in reported activity driven in particular by sales of the Obligate, Just GreenÂ® and Bigben PartyÂ® ranges. In line with the improvement in the product mix, the gross margin rate improved by 1.7 points compared to H1 2020/21. The AudioVideo / Telco division has notably stepped up the development of short âMade in France and Europeâ channels from industrial sites in the Hauts-de-France region and Romania, which allow shorter supply times. After taking into account operating expenses returning to a more ânormativeâ level after the confinement period, the Current Operating Income reached â¬ 1.4 million, ie 2.8% of turnover.
Strong continuous balance sheet with particularly low level of debt
As of September 30, 2021, Bigben’s balance sheet structure remains solid with shareholders’ equity amounting to â¬ 303.6 million. Net debt, taking into account â¬ 135.5 million of gross debt (4) and â¬ 132 million in cash, amounted to â¬ 3.4 million (1.1% gearing).
Advance orders in order to secure end-of-year sales generated an increase in stocks with an unfavorable impact on the evolution of Working Capital Requirements (â¬ 4.2M). Operational cash flow amounts to â¬ 20.2 million. Cash flow from investments (mainly acquisition of development studios and cost of game development) amounted to â¬ 46.0 million.
(4) excluding IFRS 16 rental debts and including the February 2021 bond issue
In order to optimize future revenues, Nacon has decided to postpone the release of the games Vampire: The MasqueradeÂ®– Swan song, Blood Bowl 3Â®, Lifestyle and Hotel life in fiscal year 2022/23. This additional development time will improve their quality and therefore their commercial performance. Nacon therefore no longer anticipates the expected improvement in its activity in the second half of fiscal year 2021-22. (5).
The second semester will benefit from the outputs of Cricket 2022 (1.5 billion followers worldwide) and Roguebook versions of console games (PlayStation â¢ and XboxÂ®). In addition, he will see the launch of the Revolution X Pro Controller for XboxÂ®.
BIGBEN AUDIOVIDEO / TELCO
The activity will be boosted by:
- additional sales from Metronic, a recently acquired subsidiary,
- growth opportunities resulting from the accelerated deployment of 5G smartphones and the rapid penetration of new Usb-c and Power delivery charging technologies.
However, given the implications of the aforementioned 4-game postponement that prompted Nacon to reconsider his goals (5), Bigben is adjusting its objectives for the 2021/22 fiscal year, with revenue now between â¬ 270m and â¬ 300m and current operating income of around â¬ 24m.
On the other hand, the Group expects a stronger rebound in its performance for the next fiscal year 2022/23 thanks to very sustained editorial activity by Nacon Gaming (releases of more than 15 games during the fiscal year). (5). The âBigben AudioVideo / Telcoâ division will also benefit from the good development of the 5G smartphone market and the synergies expected over a full year from the acquisition of Metronic. As a result, Bigben is revising its 2022/23 financial objectives upwards, with a turnover now between 400 and 450 M â¬ and an operating profit. (1) by more than 14%.
The 2023/24 financial year will also benefit from the momentum triggered by the release of Nacon Gaming games with again more than 15 games expected, as well as strong growth in its back-catalog.
(5) Nacon press release of November 29, 2021
Exceptional distribution project in kind in the form of Nacon actions
The Board of Directors of Bigben Interactive is examining the plan for an exceptional distribution in kind in the form of Nacon shares which could take place during the first quarter of 2022. A general meeting of shareholders will be convened in the coming weeks to approve, between others, this exceptional distribution in kind of one (1) Nacon share for five (5) Bigben Interactive shares held by the shareholders. 4.54% of Nacon’s capital could thus be distributed to the shareholders of Bigben Interactive.
Bigben Interactive will publish a press release specifying the final terms of this exceptional distribution in kind when the general meeting of shareholders is convened ruling on this transaction.
T3 2021/ 22 Sales : 24 January 2022,
Press release anear the Paris stock Exchange
ABOUT BIGBEN INTERACTIVE
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 products. The Group, recognized for its capacities in terms of innovation and creativity, intends to become one of the European leaders in each of its markets.
Company listed on Euronext Paris, compartment B – Index: CAC Mid & Small – Eligible SRD long
CapValue – Gilles Broquelet [email protected] – +33 1 80 81 50 01