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NACON: FIRST HALF 2023/24 RESULTS - English version - Seite 2

The gross margin rate was 64.2%, an increase of almost 3 points year-on-year.

EBITDA came in at €29.3 million, giving an EBITDA margin rate of 43.2% as opposed to 31.4% in the year-earlier period.
Operating expenses remained under control and increased only slightly.

After €25.6 million of depreciation and amortisation charges relating to non-current assets (€14.5 million in the first half of 2022/23), operating income was €3.7 million, equal to 5.4% of sales.

The increase in net financial expense was due to higher interest rates but above all negative exchange differences (foreign exchange loss of €0.5 million as opposed to a gain of €1.8 million in the year-earlier period).

Firm financial position at a time of major development

At 30 September 2023, NACON had equity of €248.7 million as opposed to €242.6 million at 31 March 2023. It also had €19.6 million of cash and cash equivalents versus €47.6 million at 31 March 2023, since the Group has chosen to fund developments while reducing the amount of new borrowings.
The value of NACON’s inventories also decreased relative to the previous financial year.

Currently, 50 games are under development, and the related assets have a carrying amount of €118.1 million.

Funds from operations totalled €22.0 million during the first half.

Full year 2023/24: Expected strong growth in sales and earnings

The second half of the 2023/24 financial year will see a busy release schedule, with over 10 new games expected during the period. Games released in the third quarter include Astérix & Obelix: Heroes ^TM, Cricket 24 Official Game of The Ashes ^TM, Gangs of Sherwood ^TM and especially Robocop: Rogue City ^TM, NACON’s most successful ever launch. Games scheduled for release in the fourth quarter include War Hospital and Test Drive Unlimited: Solar Crown ^TM.

Sales from the back catalogue are continuing to grow as it automatically expands with the addition of games released in previous years.

Finally, the Accessories business will benefit from a more favourable base for comparison, growth in the installed base of Xbox series and PS5 consoles and the release of several high-potential products including the REVOLUTION 5 PRO controller and RIG 600 PRO headsets.