Nacon (NACON) H1 24/25 earnings summary

Executive summary

• Revenue for the first half of 2024/25 rose 13.6% year-over-year to €77.0 million, driven by strong accessories and back catalogue sales.

• Accessories sales grew 16.6% to €29.1 million; gaming sales rose 10.7% to €45.7 million.

• Gross margin improved to 65.8% from 64.2% in the prior year period, supported by better purchasing in Accessories.

• Net income declined 32.4% year-over-year to €2.2 million, impacted by higher operating expenses and lower non-recurring income.

• EBITDA was €28.3 million, down 3.2% year-over-year due to prior period non-recurring income.

Financial highlights

• Operating income was €3.2 million (4.1% of sales), down 12.9% year-over-year.

• Funds from operations increased to €26.2 million from €22.0 million.

• Net debt stood at €101.5 million as of 30 September 2024.

• Equity increased to €288.3 million after an €18.6 million capital increase.

• Net financial expense was €2.3 million, with an average borrowing rate of 3.0%.

Outlook and guidance

• Several major game releases and premium accessories launches are planned for the second half of 2024/25.

• Management expects continued growth and further improvement in operating income, with positive momentum in Gaming and Accessories.

• Confident in achieving higher sales and operating income for full-year 2024/25.