- Operating performance in H1 2019-20
driven by strong launches
- 3Q 2019-20 revenue confirms
expectations for a front-end loaded FY 2019-20
- Outlook for 2020-21 of €110-130
million in revenue; Outlook for 2021-22 confirmed
Regulatory News:
FOCUS HOME INTERACTIVE (Paris:ALFOC) (FR0012419307
ALFOC), a leading French publisher of video games, announced its
first half 2019/20 results for the six-month period ending on 30th
September 2019 and its third quarter revenue for the period ending
on 31st December 2019.
First semester 2019/20 results
Limited review - French GAAP
H1*
H1*
Var.
In million euros
2019/20
2018/19
Revenue
79.8
44.3
+80%
Operating income
13.5
7.0
+92%
% of revenue
17%
16%
Group net income
9.2
3.3
+178%
% of revenue
12%
7%
(*) The interim financial statements, for the period ended 30
September, were subject to a limited review
Jurgen Goeldner, Chairman of the Management Board,
declared: “ Once again in the first half of our fiscal year
2019-20, Focus Home Interactive demonstrated its ability to
accelerate and drive successful game launches, in line with our
strategy. The Group is on the right track to achieve its growth
objectives. We are also pleased to welcome Jean-François Busnel as
a replacement for our CFO Deborah Bellangé who has decided to
pursue personal projects. I would like to thank Deborah who has
been instrumental to the successful development of the Group, and I
wish her all the best for the future.”
John Bert, COO, added: “We are very pleased with the
performance of our catalogue and back catalogue to date, which are
in line with our expectations for a front-end loaded fiscal year.
The second part of the year will see fewer major releases and we
also made the decision to delay the launches of Snowrunner and
Mudrunner Mobile. With this we will deliver the best possible
experience for our players early in next fiscal year. We are
currently working on 24 ongoing projects. Therefore, our very solid
pipeline gives us the confidence we need to reiterate our long-term
objectives."
Limited review - French
GAAP
H1*
H1*
Var.
In millions of euros
2019/20
2018/19
Revenue
79.8
44.3
80%
Studio costs
-46.6
-23.2
Manufacturing and ancillary
costs
-4.9
-4.8
Gross margin
28.3
16.4
72%
% of revenue
35%
37%
Personnel expenses
-5.1
-3.8
Other operating costs
-9.8
-5.6
Operating income
13.5
7.0
92%
% of revenue
17%
16%
Group net income
9.2
3.3
178%
% of revenue
12%
7%
(*) The interim financial statements, for the period ended 30
September, were subject to a limited review
Strong commercial successes in H1 2019/20
Focus Home Interactive had a strong first half in FY 2019-20.
The Group’s revenue grew by 80% up to €79.8 million, driven by the
commercial success of World War Z, Greedfall and A Plague Tale:
Innocence. The Group is particularly proud of the first nomination
for a Focus Home Interactive game – A Plague Tale: Innocence – at
the Game Awards in Los Angeles, California, which is one of the
world’s largest and most watched entertainment medium award shows.
In addition, the Group continued to expand on new platforms, with
the launch of Farming Simulator, Vampyr and Call of Cthulhu on
Nintendo Switch.
The share of digital in the first half of the year accounted for
84% of total sales, up from 65% the previous year and international
sales have risen to 93% compared to 91% last year.
Strong operating performance in the first half of
FY2019/20
The Group’s gross margin was €28.3 million in the first half of
FY2019-20 up 72% compared to the same period the previous fiscal
year. The Group’s Operating margin was €13.5 million, nearly double
that of the first half of the previous fiscal year.
Net income was up 178% over the period to €9.2 million. Other
operating expenses, which include marketing and production expenses
for games launched in the year, grew in value but remained
relatively stable as a percentage of revenue. The group continued
to be cautious in terms of managing other expenses, with personnel
cost growing due to increases in headcount and performance related
compensation.
Shareholder equity progressed to €50.3 million, while the
Group’s net debt position was € (8.7) million.
3Q 2019/20 revenue in line with expectations
Limited review In million
euros
Q3
2019/20
Q3
2018/19
Var.
9M
2019/20
9M
2018/19
Var.
Catalogue
24.5
51.2
-52%
74.6
75.8
-2%
Back-catalogue
14.4
5.9
+145%
44.2
25.7
+72%
Total revenue
38.9
57.1
-32%
118.8
101.5
+17%
For the third quarter of FY 2019-20, Focus Home Interactive
announces revenues of €38,9 million, bringing yearly total sales to
€118.8 million, 17% higher than the same period last year. The
Group continued to launch additional new content (DLC) for Farming
Simulator 19, World War Z, and Insurgency: Sandstorm. Confirming
the new strategic directives announced last year, the Group
expanded existing franchises on new platforms, launching versions
on Nintendo Switch of Farming Simulator, Vampyr and Call of Cthulhu
in this quarter.
Perspectives
The Group will continue to support Farming Simulator and The
Surge 2 with DLC launches throughout Q4 2019/20. Next fiscal year
will begin with the launch of Snowrunner and a series of titles
that will be announced in the coming months.
For the first time in February 2020, Focus Home Interactive will
be present at the PAX conference in Boston. This will provide a
great opportunity to reveal more about the summer line-up. PAX is
one of the most popular gamer shows in the industry, as it is
dedicated to supporting and celebrating video and tabletop
gaming.
As per usual, Focus Home Interactive will attend le Salon de
l’Agriculture in Paris, and for the very first time the Houston
Livestock Show and Rodeo, showcasing Farming Simulator, promoting
agriculture by hosting an annual, family-friendly experience. The
Houston Livestock Show and Rodeo is the world’s largest event of
its kind, with 2,470,000 attendees and more than 30,000
exhibitors.
24 ongoing projects and signature of new partnership
Working with 17 different studios, Focus Home Interactive has 24
unannounced projects in development, all of which will be announced
in due time. Today, Focus Home Interactive is delighted to announce
a new partnership with Blackbird Interactive on a new game project.
Blackbird Interactive is the creator of Homeworld: Deserts of
Kharak and the upcoming Homeworld 3. The upcoming game is set in an
original IP and combines Focus Home Interactive’s love of
innovation and new experiences with Blackbird’s deep knowledge of
sci-fi settings. It is sure to intrigue audiences when it is
unveiled at PAX East next month.
Blackbird Interactive is an independent Vancouver-based studio
formed of veteran game developers, with many titles in development.
In 2016, Blackbird released the critically acclaimed real-time
strategy game (RTS) Homeworld: Deserts of Kharak. In 2018,
Blackbird launched the free educational Project Eagle, a simulation
of a base on Mars, in association with NASA and the Jet Propulsion
Laboratory.
No new Farming Simulator title launching for
FY2020-21
GIANTS Software, the owner of Farming Simulator, has informed
Focus Home Interactive that no new Farming Simulator title will
launch in Fiscal Year 2020-21. The parties continue working on the
Farming Simulator 19 franchise with new content (DLC,
expansion…).
Appointment
Focus Home Interactive will appoint Mr Jean-François
Busnel as the Group's interim Chief Financial Officer on 1st
February 2020. Mr Busnel joins the Group with broad experience in
corporate and operational finance. Mr Busnel brings 30 years of
proven leadership experience and has extensive knowledge of the
Entertainment and Media industry (notably WPP Group, M6, Canal +).
Mrs Deborah Bellangé has been working in close proximity with Mr
Busnel to ensure a smooth transition and will keep doing so until
her departure on January 31, 2020.
Outlook
Focus Home Interactive announces its revenue guidance for the
end of the 2020-21 fiscal year: €110M - €130M (at constant
scope).
Focus Home Interactive confirms its revenue guidance for the end
of the 2021-22 fiscal year: €150M - €200M (at constant scope).
Upcoming events
Event
Date
2019/20 4th quarter revenue
Tuesday 21st April 2020
2019/20 Full Year results
Thursday 25th June 2020
About Focus Home Interactive
FOCUS HOME INTERACTIVE is a leading French publisher of
video games. Its vocation is to support leading international
studios in the development, production monitoring, marketing, sales
and financing of their projects. As a publisher of strong brands
such as The Surge, Vampyr, Mudrunner, Call of Cthulhu and Farming
Simulator, the Group generated revenues of €126 million in 2018/19,
up 66% compared to the previous comparable period. FOCUS HOME
INTERACTIVE generates more than 90% of its sales internationally.
For additional information, visit www.focus-home.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200121005827/en/
Investor Relations – FTI Consulting Arnaud de
Cheffontaines Cosme Julien-Madoni Tél : + 33 (0) 1 47 03 68 10
Mail : fhi@fticonsulting.com
Press Relations – FTI Consulting Rémi Salvador Sophie van
Elven Tél : + 33 (0) 1 47 03 68 10 Mail : fhi@fticonsulting.com
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