(Boursier.com) — Focus Entertainment rose by 2% to 39.45 euros this Friday while turnover for the 2021-2022 financial year amounted to 142.6 million euros, including 5.6 ME from Dotemu. 88% of sales were made via digital partners and 95% internationally. On a like-for-like basis, revenue for the 2021-2022 financial year amounts to €136.9 million. SnowRunner, Insurgency: Sandstorm and A Plague Tale: Innocence contributed strongly to revenue generation over the year.
Gross margin for the fiscal year reached €42.2 million, or 30% of revenue in line with fiscal year 2021/22 despite a base effect and the accelerated amortization of two games during the fiscal year . Adjusted operating profit for the year amounted to €13.2 million (€24.8 million at March 31, 2021), slightly above expectations, reflecting the drop in revenue over the year as well as the evolution of the gross margin.
Strict cost control led to a 3% reduction in general and administrative expenses, which amounted to 6% of sales for the year. The amortization of goodwill over the financial year amounts to -4 ME.
The operating result for the financial year amounts to 9.1 ME. Net income (Group share) for the 2021-2022 financial year reached 3 ME (13.3 ME a year earlier). EBITDA is also 42.1 ME, ie an EBITDA margin representing 30% of sales, in line with the previous financial year.
Cash flow preserved
The group spent 35 ME on the development of new games during the year, compared to 39.5 ME in 2020-2021. Game lags postponed several payment milestones to fiscal year 2022-23. After financing the development of games, operating cash flow amounts to -8.6 ME during the 2021-2022 financial year.
Focus Entertainment continued its external growth strategy to develop and diversify its expertise in new high-potential segments. Acquisitions represented an outflow of €59.1 million over the financial year. The group has also secured significant means of financing, by raising a net amount of 68.8 ME in capital in May 2021 as well as 130 ME in the form of bank financing, of which 52 ME were drawn at the end of March 2022. As of March 31, 2022, the Group’s cash position was €62.6 million.
Prospects displayed, key launches
Focus Home Interactive confirms the group’s strategy of continuing to move up the value chain supported by the most ambitious portfolio of games in development ever created. Focus Entertainment aims to build a federation of talent and become an integrated world leader in video games. Over the next 3 years, the Focus Entertainment group will benefit from the most ambitious line-up of games ever created. 31 new games should be launched by March 2025. 30% of the revenue generated over the total lifetime of these games should come from games whose IP is owned directly (15%) or co-owned (15% ) by Focus Entertainment”, says Christophe Nobileau, Managing Director.
In the shorter term, after a successful preview launch on PC, Hardspace: Shipbreaker officially launched on PC on May 24. Around 500,000 copies have already been sold. The highly anticipated Teenage Mutant Ninja Turtles: Shredder’s Revenge has just launched. Evil West, a new franchise developed by Flying Wild Hog, will be released on both console and PC on September 20. Finally, A Plague Tale: Requiem, the sequel to the multi-million-selling game, A Plague Tale: Innocence, developed by Asobo, will be released later this year…
Among the latest brokers’ opinions, Oddo BHF is only targeting a price of 60 euros, against 65 euros previously, with an opinion to ‘outperform’.