DON’T NOD: 2022 half-year results – 2022-10-11 at 18:15

• A dense line up of 8 games in production

• Economical EBIT
  
  ⁴
  
  multiplied by 3

• A solid cash position at €46.1 million

Paris, October 11, 2022 – DON’T NOD, an independent publisher and studio for the creation and development of video games, presents its 2022 half-year results approved by the Board of Directors meeting on October 6, 2022. The limited review procedures of the statutory auditors accounts on these accounts have been carried out and the auditors’ report will be issued in the coming days. The Half-Year Financial Report will be made available during the month of October.

On the occasion of the publication of the 2022 half-year results, Oskar Guilbert, Chairman and CEO of DON’T NOD, declared: ”

Our teams are fully focused on ramping up production and we now have a dense pipeline that will create strong value over the next 3 years. After 2 years devoted to investments, our international deployment and the ramping up of the marketing and publishing departments, the Group will take a new step in its development in 2023 and will accelerate its rate of releases. »

A ramp-up of production lines

For the first six months of the 2022 financial year, DON’T NOD posted an increase of +16% in its economic operating income, which amounted to €14.9 million compared to €12.8 million at June 30, 2021. This performance is based on:

• publisher royalties up by +34% relating to the development of the game in co-production with FOCUS Entertainment,

• a drop in royalties (-82%) to €0.5 million linked to the absence of game releases since the end of 2020, in accordance with the Group’s strategy,

• a 46% increase in capitalized production, to €11.4 million, illustrating the ramping up of development relating to the 8 self-published or co-produced projects.

A 3-fold increase in economic EBIT

The 2022 half-year accounts confirm, as anticipated, the ramp-up of ongoing developments and the absence of game releases over the period.

Staff costs

[5]

up 31% amounted to €12.1 million at June 30, 2022, compared to €9.2 million a year earlier, representing the recruitments necessary for the development of the 6 internal production lines. In addition, other expenses increased by 74% to €4.3 million as of June 30, 2022, reflecting the ramp-up of production lines and outsourcing costs associated with developments.

Thus, economic EBITDA including Video Game Tax Credits (French and Canadian) amounted to €1.8 million on 1

^er

half of 2022, down €1.5 million compared to June 30, 2021 in connection with the drop in Royalties.

After taking into account allocations to depreciation and provisions (insignificant over the period), economic EBIT including CIJV amounted to €1.9 million, multiplied by 3 compared to the 1

^er

semester 2021.

Finally, the net income of the consolidated group for the 1

^er

semester 2022 showed a strong improvement at €1.7 million compared to €0.4 million a year earlier.

A sound financial structure

DON’T NOD generated a positive cash flow of €2.2 million in the first half of 2022 compared to €3.6 million for the previous year. The investments made over this first period of the 2022 financial year (€11.3 million) are mainly related to games in development on the self-publishing, co-production and external publishing models.

At the end of June 2022, DON’T NOD had available cash of €46.1 million. Financial debts amount to only €4.0 million (including State Guaranteed Loan of €3.6 million obtained in April 2020 with a repayment period of 5 years). Finally, other receivables include €8.3 million in uncollected tax credits as of June 30, 2022.

Prospects and development

In the second half of 2022, DON’T NOD will continue to develop its rich pipeline of

8 original creations

, including 5 in self-publishing, 1 in co-production with FOCUS Entertainment and 2 in co-production with external studios Tolima and Tiny Bull, which DON’T NOD will publish. The releases of all of these games are scheduled between 2023 and 2025.

Finally, DON’T NOD will maintain its development strategy which aims to:

• Strengthen co-production
  
  in segments with high commercial potential;

• Strengthen partnerships
  
  through co-financing and guaranteed minimums in order to secure royalties;

• Strengthen accessibility
  
  by diversifying the gameplay mechanics of the projects under development.

After 2 years of investment and structuring, the next few years will mark a turning point for the Group, with the release of a wave of self-published or co-produced games.

About DON’T NOD

DON’T NOD is an independent publisher and developer based in Paris and Montreal, creator of original narrative games in the adventure genres (LIFE is STRANGE

^TM

TELL ME WHY

^TM

TWIN MIRROR

^TM

), RPG (VAMPYR

^TM

) and action (REMEMBER ME

^TM

). The studio is internationally recognized for its unique narrative experiences, featuring strong stories and engaging characters, and has worked with major industry publishers: Square Enix, Microsoft, Bandai Namco Entertainment, Focus Entertainment and Capcom. DON’T NOD now aims to create and publish its own Intellectual Properties, developed internally as well as to share its knowledge and experience, in order to collaborate with third-party developers whose editorial vision resonates with that of the company.

Enter the immersive and innovative universe of the studio on the website dont-nod.com

DON’T NOD (ISIN code: FR0013331212 – ALDNE) is listed on Euronext Growth Paris

[1]

For costs incurred on co-production and self-publishing games until their release

[2]

Turnover + capitalized production

[3]

Operating income + depreciation and provisions net of reversals + CIJV + CTMM (Video Game Tax Credits)

[4]

Operating income + CIJV + CTMM (Video Games Tax credits)

[5]

Avg. 308 at 06/30/22 vs. 245 at 06/30/21

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