Don't Nod Entertainment (ALDNE) H1 2024 earnings summary

Executive summary

• Operating revenues declined 11% year-over-year to €14.6 million due to underperformance of recent game launches and fewer new co-productions.

• Results were severely impacted by non-cash write-downs and a highly competitive market environment.

• A reorganization project is under consideration, potentially affecting up to 69 jobs, to restore competitiveness and secure resources.

Financial highlights

• Operating EBITDA including tax credits fell to -€1.3 million from €1.1 million year-over-year.

• Net loss widened sharply to -€42.4 million from -€0.9 million, driven by nearly €40 million in non-cash charges.

• Operating EBIT including tax credits dropped to -€34.5 million from €0.4 million year-over-year.

• Cash and cash equivalents at June 30, 2024, were €45.5 million, down from €54.8 million at year-end 2023.

Outlook and guidance

• Ongoing development continues for Lost Records: Bloom & Rage (episodes in Feb and Mar 2025), P10, and P14 (releases before end of 2027).

• Project conception phases are being reoriented to reach a wider audience and increase partnership opportunities.