PRESS RELEASE: BIGBEN: 2023/24: STRONG EARNINGS GROWTH

                                                Press release

      Lesquin, 3 June 2024, 6pm CET

2023/24: STRONG EARNINGS GROWTH

• SALES: €295 MILLION, UP 4.1%
• EBITDA: €78 MILLION, UP 40.8%
• OPERATING INCOME: €23.8 MILLION, UP 20.2%
  
  

2024/25: CONTINUING GROWTH IN BUSINESS LEVELS AND OPERATING INCOME

Bigben Interactive (ISIN FR0000074072) is today announcing consolidated results for its 2023/24 financial year (from 1 April 2023 to 31 March 2024) as finalised by the Board of Directors in its meeting of 3 June 2024.

Consolidated IFRS figures (€ million)	2023/24	2022/23	Change
Sales (non-IFRS)	295.0	283.5	+4.1%
Adjustment for the partial disposal of Gollum	(3.0)
IFRS sales	292.0	283.5
Gross profit % of sales	142.5 48.8%	127.0        44.8%	+12.2%
Ebitda % of sales	78.0 26.7%	55.4        19.5%	+40.8%
Operating income % of sales	23.8 8.1%	19.8        7.0%	+20.2%
Net financial expense	(3.6)	(4.2)
Pre-tax income % of sales	20.1 6.9%	15.6        5.5%	+29.4%
Income tax	0.9	(2.6)
Net income for the period % of sales	21.0 7.2%	13.0        4.6%	+61.1%

The Bigben group performed very well in 2023/24, with a sharp increase in earnings.

Full-year sales amounted to €295.0 million, an increase of 4.1%.
NACON’s sales (non-IFRS) totalled €170.7 million, up 9.4% year-on-year, while the Bigben AudioVideo/Telco business achieved sales of €124.3 million, a slight decrease of 2.5%.

Gross margin was boosted by higher volumes and an improvement in the product mix, rising by 4 points to 48.8%.

Ebitda grew 40.8% to €78.0 million, equal to 26.7% of sales as opposed to 19.5% in the previous year.

Net income was €21.0 million, equal to 7.2% of sales, as opposed to €13.0 million and 4.6% of sales in 2022/23.

Analysis of performance by business

	NACON Gaming			Bigben AudioVideo/Telco
Consolidated IFRS figures (€ million)	2023/24	2022/23	Change		2023/24	2022/23	Change
Sales (non-IFRS)	170.7	156.0	+9.4%
Sales	167.7	156.0	+7.5%		124.3	127.5	-2.5%
Gross profit	104.2	92.1	+13.1%		38.3	34.9	+9.9%
% of sales	62.1%	59.1%			30.8%	27.4%
Ebitda	70.9	48.9	+45.0%		7.1	6.5	+19.6%
% of sales	42.3%	31.4%			5.7%	5.1%
Operating income	20.9	17.3	+20.5%		2.9	2.5	+18.0%
	12.5%	11.1%			2.3%	1.9%

NACON Gaming increased its sales (non-IFRS) by 9.4% to €170.7 million, and its earnings rose sharply.

During the year, Catalogue sales (new games) were boosted by a heavy release schedule consisting of 19 games, including the highly successful Robocop: Rogue City ^TM. Catalogue sales amounted to €59.3 million (non-IFRS), up 21.2% relative to 2022/23. The Back Catalogue (games released in previous years) performed very well, with sales rising 7.4% to €44.7 million. The Accessories business generated sales of €62.7 million and returned to growth in the second half of the year, driven by an increase in the installed base of new consoles and new product releases (the RIG 600 PRO headset and the REVOLUTION 5 PRO controller).

Gross margin was 62.1%, an increase of 3 points year-on-year. Ebitda rose by 45% to €70.9 million, giving Ebitda margin of 42.3% as opposed to 31.4% in the previous year.

Operating income rose 20.5% to €20.9 million, equal to 12.5% of sales.

The increase in net financial expense was due to higher interest rates. Exchange differences remained stable (foreign exchange loss of €0.8 million, as in the previous year).

The Bigben AudioVideo/Telco business generated sales of €124.3 million, down 2.5%, while its operating income rose by 18%.

In a smartphone market that continued to contract significantly, the Mobile Accessories business performed well, with sales of €95.8 million (down 1%) due to the premium strategy implemented by the Group since 2015 via its Force brand. Sales in the AudioVideo segment amounted to €28.3 million (down 6.8%).

Gross profit rose by 9.9% to €38.3 million due to the product mix focused on premium brands, which accounted for 30.8% of sales as opposed to 27.4% in 2022/23.

Ebitda totalled €7.1 million as opposed to €6.5 million in 2022/23, an increase of 9.6%.

Operating income rose 18.0% year-on-year to €2.9 million.

Improved financial position, reflecting heavy investment in the Gaming business

At 31 March 2024, the Bigben group had €327 million of equity and €41.2 million of cash and cash equivalents. Its net debt amounted to €154 million at the end of the year as opposed to €163 million at 30 September 2023.

With funds from operations rising in both business segments (up 27.3% for NACON Gaming and up 26.4% for Bigben AudioVideo/Telco) and a €20.8 million increase in the WCR, cash flow from operating activities totalled €79.7 million as opposed to €53.9 million in 2022/23, an increase of 47.9%.
2024/25: Continuing growth in business levels and operating income

NACON will have a busy release schedule in 2024/25, with around 15 games due to be released during the year including Test Drive Unlimited: Solar Crown^TM, scheduled for 12 September 2024, Tour de France 2024, Tiebreak, Ravenswatch (of which almost 500,000 copies have already been sold via early access on PC), Rugby24 and Endurance, along with Greedfall II: The Dying World and Terminator: Survivors^TM, which will be released via early access.

The Back Catalogue will automatically benefit from the large number of games released in 2023/24, including Robocop: Rogue City ^TM, which should lead to significant growth.

In Accessories, NACON will continue to reap the rewards of successful product launches in 2023, including the RIG 600 PRO headset and the REVOLUTION 5 PRO controller.
The main development in 2024/25 will be the Group’s initiative to bring together its games and accessories activities in the Racing market, along with its new ambitions in this area:

• Creation of the dedicated NACON Racing department and the “Revosim by Nacon” brand, building on 10 years of expertise in this market;
• Launches of new premium products (Revosim steering wheel, RIG 900 headset etc.);
• New licences currently being negotiated.
  
  

This will make NACON the only company in the world to offer a comprehensive range of games and accessories for motor racing fans.

The Bigben AudioVideo/Telco business will benefit from previous strategic decisions and initiatives to support its markets.

In Mobile Accessories, Bigben has several advantages in a contracting market:

• A comprehensive premium product range with its Force brand (chargers, wireless earphones, screen protectors, straps, speakers etc.), allowing it to address all the needs of smartphone users.
• A presence in adjacent markets, with new products such as the surge protection power strip (over 100,000 units forecast). An anti-bacterial cleaning spray will also be launched in June, and an international travel charger in July.
• Diversification in terms of sales channels, with the aim of achieving a growing presence in all shopping venues (phone stores, supermarkets, DIY stores, service stations etc.).
  
  

Bigben will also benefit from new trends in the smartphone market, with consumers increasingly buying accessories as they keep their mobile phones for longer.

The AudioVideo business will be boosted by the success of the Thomson Cosy range, to which new products will be added this year, and the launch of the new HiBuddies range of nightlights for children, available in more than 1,600 points of sale across six countries.

The Group is therefore confident that it can continue its development, growing sales and increasing operating income in full-year 2024/25.

ABOUT BIGBEN INTERACTIVE

2023/24 IFRS SALES €292 million     WORKFORCE Over 1,300 employees     INTERNATIONAL PRESENCE 31 subsidiaries and a distribution network in more than 100 countries www.bigben-group.com

Bigben is a pan-European player in publishing video games and designing and distributing mobile accessories, gaming accessories and audio/video products. The Group is known for being innovative and creative, and aims to be one of Europe’s leading companies in each of its markets.   Listed on Euronext Paris, compartment B – Index: CAC Mid & Small – Eligible for the long-only deferred settlement service ISIN: FR0000074072; Reuters: BIG.PA; Bloomberg: BIGFP   PRESS CONTACT Cap Value – Gilles Broquelet gbroquelet@capvalue.fr - +33 (0)1 80 81 50 01

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