PRESS RELEASE: BIGBEN: HALF-YEAR RESULTS 2021/22


Bigben

Press release

Lesquin, November 29, 2021 6:00 p.m.

Uunfavorable basis of comparison for the 1H1 2021 /22 :

  • Turnover: € 124.2m (-8.5%)
  • Current Operating Profit: € 9.9 M (-41.6%) or 8.0% of revenue
  • Net income: € 6.9m (-28.6%)

Adjustment of 2021/22 targets:

  • Sales between 270 and 300 M €
  • Current Operating Profit of around € 24m

Improved 2022/23 targets:

  • Sales between 400 and 450 M € with a Current Operating Margin (1) > 14%

BIGBEN INTERACTIVE (ISIN FR0000074072) today publishes its consolidated results for 1st Semester 2021-22 (from April 1, 2021 to September 30, 2021) as approved by its Board of Directors on November 29, 2021.

Consolidated in € m – IFRS 09/ 2021 09/ 2020 Switch
Sales 124.2 135.8 -8.5%
Gross margin (1)
In% of sales

EBITDA (2)
In% of sales

51.4
41.4%

24.6
19.8%

57.3
42.2%

33.4
24.6%

-10.3%

-26.4%

current operating income
EBITA
In% of sales

Non-recurring items

9.9
8.0%

(5.8)

16.9
12.5%

(2.3)

-41.6%

Operating Income
In% of sales
4,1

3,3%

14.7
10.8%
-71.8%
bottom line
incl. Exchange rate gain /(loss)
incl. gain/(loss) to Bond problem
4.8
0.1
5.8
(1.2)
(0.7)

Profit before tax
In% of sales

9,0
7,2%
13.5
9.9%
-33.3%
Tax (2.0) (3.7)
Net income for the period
In% of sales
6,9
5,6%
9.7
7.2%
-28.6%
of who minority interests 0.9 2.2

(1) COI rate = Current operation Income as a percentage of sales = Current Operating Margin

(2) Gross margin = Sales – Cost of goods sold; Other exploitation products posted between Gross margin and EBITDA

(3) EBITDA = Current Operating income before depreciation of tangible and intangible assets

Performance cushioned by a high basis of comparison in the first half of 2020/21is

Bigben achieved a turnover of € 124.2m in H1 2020/22, down 8.5% compared to the same period last year. H1 2020/21 activity benefited from the exceptional momentum of Nacon Gaming during the first lockdowns and from denser editorial content.

The H1 2021/22 Gross Margin amounted to € 51.4 million, or 41.4% of sales. The margin rate is only slightly lower than that of H1 2020/21, reflecting good control of the transport and raw materials crisis.

Current Operating Profit was down 41.6% to € 9.9 million, resulting in a margin of 8.0%. This change is mainly linked to the decrease in activity of Nacon Gaming.

After taking into account in particular the non-recurring charges related to the free share allocation plans, a positive financial result due to the half-yearly revaluation of the IFRS entries of the bond loan, the Net result for the period reached 6, € 9 million or 5.6% of turnover.

Analysis of thatHelloelements by business unit

NACON-GAMING BIGBEN – AUDIOVIDEO / TELCO
Consolidated in € m – IFRS 09/ 2021 09/ 2020 Switch 09/ 2021 09/ 2020 Switch
Sales 73.0 86.6 -15.7% 51.2 49.1 + 4.1%
Raw Margin (2) 38.0 45.3 -16.0% 13.4 12.0 + 11.4%
In% of sales 52.1% 52.3% 26.1% 24.4%
EBITDA (3) 21.4 30.4 -29.7% 3.2 2.9 + 7.1%
In% of sales 29.3% 35.1% 6.2% 6.0%
Running Operating Returned 8.4 15.7 -46.3% 1.4 1.2 + 20.4%
In% of sales 11.6% 18.2% 2.8% 2.4%

Nacon – Game published in 1H1 2021-22 € 73.0 million in revenue, down 15.7% compared to the same period of the previous fiscal year. Games sales were € 27.3 million, down 16.9% due to lower editorial activity. The back catalog has shown resilience with a turnover of € 16.2 million. Accessories sales amounted to € 43.7 million, down 15.1% due to a high comparison base and logistical difficulties in North America.

The 1H1 2021-22 margin reached € 38.0 million, or 52.1% of sales. Despite the sharp increase in transport and raw material costs, the margin rate remains virtually unchanged compared to H1 2020/21. The weakness of the editorial activity of the Games and the fall in sales of Accessories recorded in this first half of the year resulted in a drop in Current Operating Income to € 8.4 million, or 11.6% of turnover.

Bigben – Audio video/ Telco growth in reported activity driven in particular by sales of the Obligate, Just Green® and Bigben Party® ranges. In line with the improvement in the product mix, the gross margin rate improved by 1.7 points compared to H1 2020/21. The AudioVideo / Telco division has notably stepped up the development of short “Made in France and Europe” channels from industrial sites in the Hauts-de-France region and Romania, which allow shorter supply times. After taking into account operating expenses returning to a more “normative” level after the confinement period, the Current Operating Income reached € 1.4 million, ie 2.8% of turnover.

Strong continuous balance sheet with particularly low level of debt

As of September 30, 2021, Bigben’s balance sheet structure remains solid with shareholders’ equity amounting to € 303.6 million. Net debt, taking into account € 135.5 million of gross debt (4) and € 132 million in cash, amounted to € 3.4 million (1.1% gearing).

Advance orders in order to secure end-of-year sales generated an increase in stocks with an unfavorable impact on the evolution of Working Capital Requirements (€ 4.2M). Operational cash flow amounts to € 20.2 million. Cash flow from investments (mainly acquisition of development studios and cost of game development) amounted to € 46.0 million.

(4) excluding IFRS 16 rental debts and including the February 2021 bond issue

Outlook

NACON GAMES

In order to optimize future revenues, Nacon has decided to postpone the release of the games Vampire: The Masquerade®– Swan song, Blood Bowl 3®, Lifestyle and Hotel life in fiscal year 2022/23. This additional development time will improve their quality and therefore their commercial performance. Nacon therefore no longer anticipates the expected improvement in its activity in the second half of fiscal year 2021-22. (5).

The second semester will benefit from the outputs of Cricket 2022 (1.5 billion followers worldwide) and Roguebook versions of console games (PlayStation ™ and Xbox®). In addition, he will see the launch of the Revolution X Pro Controller for Xbox®.

BIGBEN AUDIOVIDEO / TELCO

The activity will be boosted by:

  • additional sales from Metronic, a recently acquired subsidiary,
  • growth opportunities resulting from the accelerated deployment of 5G smartphones and the rapid penetration of new Usb-c and Power delivery charging technologies.

However, given the implications of the aforementioned 4-game postponement that prompted Nacon to reconsider his goals (5), Bigben is adjusting its objectives for the 2021/22 fiscal year, with revenue now between € 270m and € 300m and current operating income of around € 24m.

On the other hand, the Group expects a stronger rebound in its performance for the next fiscal year 2022/23 thanks to very sustained editorial activity by Nacon Gaming (releases of more than 15 games during the fiscal year). (5). The “Bigben AudioVideo / Telco” division will also benefit from the good development of the 5G smartphone market and the synergies expected over a full year from the acquisition of Metronic. As a result, Bigben is revising its 2022/23 financial objectives upwards, with a turnover now between 400 and 450 M € and an operating profit. (1) by more than 14%.

The 2023/24 financial year will also benefit from the momentum triggered by the release of Nacon Gaming games with again more than 15 games expected, as well as strong growth in its back-catalog.

(5) Nacon press release of November 29, 2021

Exceptional distribution project in kind in the form of Nacon actions

The Board of Directors of Bigben Interactive is examining the plan for an exceptional distribution in kind in the form of Nacon shares which could take place during the first quarter of 2022. A general meeting of shareholders will be convened in the coming weeks to approve, between others, this exceptional distribution in kind of one (1) Nacon share for five (5) Bigben Interactive shares held by the shareholders. 4.54% of Nacon’s capital could thus be distributed to the shareholders of Bigben Interactive.

Bigben Interactive will publish a press release specifying the final terms of this exceptional distribution in kind when the general meeting of shareholders is convened ruling on this transaction.

Next publication:

T3 2021/ 22 Sales : 24 January 2022,
Press release anear the Paris stock Exchange

ABOUT BIGBEN INTERACTIVE

SALES 2020-21
€ 292.8m

EFFECTIVE
More. 1060 employees

INTERNATIONAL
28 subsidiaries and a distribution network in 100 countries
www.bigben-group.com

Bigben Interactive is a European player in the development and publishing of video games, the design and distribution of accessories for smartphones and games as well as audio products. The Group, recognized for its capacities in terms of innovation and creativity, intends to become one of the European leaders in each of its markets.

Company listed on Euronext Paris, compartment B – Index: CAC Mid & Small – Eligible SRD long
ISN: FR0000074072; Reuters: BIGPA; Bloomberg: BIGFP

PRESS CONTACTS

CapValue – Gilles Broquelet [email protected] – +33 1 80 81 50 01

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