BIGBEN INTERACTIVE : 1st quarter sales of 48.7 M€ up 3.3 %
23 July 2018, 18:00
1st quarter sales of 48.7 M€ up 3.3 %
Sales and profit targets confirmed for FY 2018/19
| IFRS- M€ |
Of which Gaming
Of which Mobile
Of which Audio
Non audited data
Strong growth of video game publishing in Q1 2018/19
Bigben posted sales of 48.7 M€ in the 1st quarter 2018/19 (April, May, June 2018), up by 3.3%. Within the previous scope of consolidation excluding the acquisition of the Cyanide Development Studio on June 20, 2018, the increase was 0.4%.
The gaming business recorded a 60.0% growth with 23.5 M€ sales in Q1 2018/19.
· Video games: In accordance with the Group's expectations, the activity showed a very strong increase in the 1st quarter with a threefold turnover of 16.2 M€ compared to 5.1 M€ in the 1st quarter 2017/18, distribution for third parties representing less than 1.0 M€. This performance is supported by the excellent commercial reception enjoyed by Tennis World Tour ®, with 500,000 units distributed. The consumer sales of this game which promises to be a real "long-seller", remains buoyant and already exceeds 200,000 units. Patches have improved the quality of the game and other patches will be released in the future as well as additional content. This game will therefore continue to generate significant turnover for more than a year. With online sales of Tennis World Tour ® reaching a record level for Bigben and the existing back catalogue, digital video game sales showed a 160% record increase and accounted for 24.8% of Publishing sales.
· Accessories: The Gaming accessories business faced an adverse comparison basis with Q1 2017/18 (launch of accessories for the latest Nintendo SWITCH TM console and expansion of the range of REVOLUTION Pro Controller controllers) that have been partially offset by the good sales of NACONTM accessories and audio headsets for consoles and PCs. Thus, accessory sales were down by 24.4% to 7.3 M€ against 9.6 million in the first quarter of the previous financial year.
The mobile accessories activity showed sales of 21.1 M€ in Q1 2018/19, down by 21.0%. This trend results on the one hand from a strong comparison basis in Q1 2017/18 (launch of the Samsung S8 smartphone), and on the other hand from a disappointing reception by the market for the latest premium smartphones. This trend was nevertheless offset by the further growth of the home brands Force Glass ® (Protection screens) and Force Case ® (protective shells) which rose by 25% and by the rising demand for the Bigben accessories developed for Huawei, a brand in full development in France.
Based on a high comparison basis in Q1 2017/18 resulting from exceptional transactions, the Audio business showed sales down by 28.8% to 4.1 M€.
Favorable growth prospects
Growth should be sustained in the second quarter with a majority contribution from Gaming.
Publishing will benefit from the launch of two games with a strong sale potential: Warhammer Inquisitor Martyr and V-Rally 4. Digital sales, a source of high added value, should grow further through these releases.
The teams of Bigben and Cyanide Studio are also already finalising the next projects that will be developed by Cyanide for the Group starting in September 2018.
At the same time, Gaming Accessories business will see the marketing of REVOLUTION Pro Controller controllers in Japan, with an already high level of preorders.
This business will complement the Force Glass ® and Force Case ® products over the period with the launch of Force Power ®, a complete range of high performance chargers and cables for smartphones.
The releases of new premium smartphones should allow the market to resume a positive momentum at the end of the quarter.
Growth should return as from the second quarter: Bigben aims to take on new market shares with the development of products under its Lumin'Us private brand (enhancement of the "Home" range and launch this summer of a new "Outdoor" range) and with a Thomson range strengthened by the launch of induction products and the widening of the turntable offer in view of the return of vinyl records to the mainstream.
Confirmation of annual targets
Banking on the momentum of the Gaming business, the Group confirms its annual targets :
- FY 2018/2019: a 265 to 280 M€ sales target and a current operating profit rate exceeding 8.0 %
It is reminded that the new targets set for the Group in 2022, highlighting the synergies expected from the integration of Cyanide Studio, will be disclosed to the financial community on the release of its interim results 2018/2019 on 26 November 2018.
- Sales for 2nd quarter of FY 2018/19 : Monday 22 October 2018
Press release after close of the stock market
ABOUT BIGBEN INTERACTIVE
over 450 employees
10 subsidiaries and a distribution network in 100 countries
Bigben Interactive is a European player in video game development and publishing, in design and distribution of smartphone and gaming accessories as well as in audio products. The Group, which is recognized for its capacities in terms of innovation and creativity, intends to become one of Europe's leaders in each of its business segments.
Company listed on Euronext Paris, compartment B - Index : CAC SMALL - Eligible SRD long
ISN : FR0000074072 ; Reuters : BIGPA ; Bloomberg : BIGFP
CapValue - Gilles Broquelet
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