Nacon: share price down, 1st half in line with expectations

(CercleFinance.com) - Nacon's share price fell by more than 5% on the Paris Bourse on Tuesday, following the release of half-year results judged "weak" but "broadly in line" by analysts.


In its first half to the end of September, the video game specialist posted a 13.6% increase in sales, including a 10.7% rise to 45.7 million euros for its games business.

The accessories division posted a 16.6% increase in revenues to 29.1 million euros.

The gross margin rate rose to 65.8% of sales, compared with 64.2% for the same period in the 2023-2024 financial year, thanks to optimized purchasing in the accessories ranges.

Ebitda nevertheless fell to 28.3 million euros, down 3.2% on last year.

Oddo BHF's analysts commented this morning: "There are no real surprises in these half-year results, although we considered the publication of first-half sales to be disappointing, due to lower-than-expected sales for Test Drive".

The brokerage firm therefore renews its "outperform" rating, with an unchanged target price of one euro per share.

Following this publication, Euroland has renewed its buy recommendation, but reduced its target price to 1.8 euros, compared with two euros previously.

With regard to the outlook, Oddo notes that Nacon has confirmed its full-year forecasts, with the second half of the year expected to be "more buoyant".

In its press release, Nacon simply stated that it expected growth in both sales and operating income for the full year.

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