Don't Nod Entertainment (ALDNE) H2 2024 earnings summary

Executive summary

• 2024 results were significantly below expectations due to commercial underperformance of recent game releases in a highly competitive market.

• A major non-cash accounting adjustment to portfolio value and asset impairments impacted results.

• Strategic refocus on three production lines and cost-saving measures implemented to adapt to market conditions.

Financial highlights

• Operating revenues fell 25% to €23.9M in 2024 from €32.1M in 2023, mainly due to lower capitalized production and no new development revenues.

• Operating EBITDA including tax credits was a loss of €8.5M in 2024, down from a €1.7M profit in 2023.

• Operating EBIT including tax credits was a €44.8M loss, compared to a €11.9M loss in 2023, driven by €33M in non-cash impairments.

• Consolidated net loss widened to €64.3M in 2024 from €14.8M in 2023, with over €50M in non-cash charges.

• Gross cash position at year-end was €32.9M, down from €54.8M, with gross financial debt limited to €1.6M.

Outlook and guidance

• 2025 began with strong releases such as Lost Records: Bloom & Rage and Koira, both receiving critical acclaim and meeting sales forecasts.

• The Lonesome Guild is scheduled for release in late 2025, and development continues on two internal IPs.

• Focus remains on three core genres and securing financing for future productions, with an emphasis on partnerships and operational agility.