Nacon: share price rises, 3rd quarter reassuring

(CercleFinance.com) - Nacon shares are up over 6% on the Paris Bourse this Tuesday, following a quarterly publication considered reassuring by analysts, albeit slightly below their expectations.


For its 3rd quarter, ending December, the video game group reported sales of 59 million euros, compared with 41.1 million euros, representing growth of 43.3%.

Games business (56% of Q3 sales) regained momentum in Q3, with year-on-year growth of 74% to 34 million euros, although we were expecting stronger momentum (38 million)", commented Oddo BHF analysts.

In detail, growth was driven by the Catalogue (+102% year-on-year), with the main releases being Robocop (which we believe accounts for more than half of Catalogue sales) and, to a lesser extent, Cricket 24", the research firm adds.

Invest Securities also reacted favorably, citing a "reassuring" publication, even if it didn't quite meet their forecasts.

"The main pleasant surprise of this publication comes from the confirmation of the release of Test Drive for the 4th quarter, a game that represents a major challenge for Nacon (50 to 100 million euros in potential sales over time, according to the CEO)", emphasizes the brokerage firm.

While there is still a long way to go before we can be definitively reassured, the trajectory is improving", underlines Invest.

In its press release, Nacon recalled that the second half of the 2023-2024 financial year would be marked by a rich editorial activity, with the release of more than a dozen games over the period.

This timetable enables the company to confirm its 'strong growth' outlook, in terms of both sales and operating income, for the full 2023-2024 financial year.

Copyright (c) 2024 CercleFinance.com. All rights reserved.