Pullup Entertainment (ALPUL) H2 23/24 earnings summary

Executive summary

• FY 2023/24 featured consolidation, integration of new entities, and a focus on optimizing operations in a competitive industry, including a new name, business divisions, and key management appointments.

• Revenue reached €187.3 million, with EBITDA at €65.2 million and EBITA nearly break-even at -€0.3 million, reflecting restructuring and new organization.

• Acquisition of Dovetail Games and creation of Scripteam expanded recurring revenue streams and IP-based audiovisual production.

• Two major game launches were delayed, impacting new release revenue, but back-catalog performance was robust, representing 66% of total revenue.

• 11 group-wide launches, two new associate studios, and strategic minority stakes in RUNDISC and UPPERCUT GAMES enhanced the portfolio.

Financial highlights

• Net revenue: €187.3m, down 4% year-over-year; back-catalog revenue up 89% to €123.5m, new releases at €53.6m.

• EBITDA: €65.2m (35% of revenue), up from €60.3m; EBITA: -€0.3m, improved from -€4.5m.

• Gross margin at 24%, down from 37% prior year due to fewer blockbuster launches and increased operating costs.

• Group net income: -€19.9m, compared to €7.3m profit last year; net debt increased to €132.6m from €27m.

• Closing cash balance: €17.9m as of March 31, 2024, with €30m in undrawn credit lines available.

Outlook and guidance

• FY25 market expected to remain flat, with extra content offsetting base game revenue decline; console install base projected to grow by 16%.

• Major upcoming releases include Warhammer 40,000: Space Marine 2 (Sept 2024), Metal Slug Tactics, and several new simulation titles.

• 26 projects in co- and own-IP and 33 live games planned for launch over the next three years; over 60 projects in the pipeline.

• Mid-term target: 50% of sales from own or co-owned IP, with a focus on recurring revenue and niche segments.

• Additional content and audiovisual adaptations expected to support growth.