Focus Home Interactive: Revenue of € 41.2m in Q1 2021/22

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PARIS–(COMMERCIAL THREAD) – Regulatory news:

INTERACTIVE HOME FOCUS (Paris: ALFOC) (FR0012419307 ALFOC), a leading French player in the video game industry, announced its first quarter 2021/22 revenue for the period ending June 30, 2021.

Revenue for fiscal year 2020/21

In millions of euros

Unaudited

Q1 2021/22

Q1 2020/21

Variation

Catalog

17.0

37.1

-54%

Back to catalog

23.8

27.1

-11%

Deck 13

0.3

Group

41.2

64.3

-36%

Christophe Nobileau, Chairman of the Management Board, declared:Although the health context and the successive confinement period allowed us to achieve very good performances in 2020/21, they weighed heavily on the development of our future games. In line with our long-term growth ambitions, we have decided to postpone the release of certain games in order to guarantee our quality standards and the future success of these titles. This has an immediate impact on our 2021/22 revenue target, which is now deferred to 2022/23 on a like-for-like basis. At the same time, we are actively pursuing our search for external growth opportunities by relying on our financial capacity (more than 200 million euros), while maintaining a reasoned approach in terms of prices. We are convinced that these decisions strengthen our Group and its ability to create value ”.

John Bert, Managing Director, added: We started the year with a slew of game releases in the first quarter. However, the health context strongly impacted our production processes and our upcoming releases for the rest of the year. By deciding to postpone certain games, we are asserting our requirement and demonstrating our position as a responsible publisher, committed to quality and concerned with offering the best possible experience to our players. The Focus teams and our partner studios are strongly committed to the many upcoming launches to make them commercial and critical successes commensurate with those that have made the Group’s history. With the quality partnerships we have recently signed and the ambitious games currently in development, we are confident in the future ”.

Growth in revenue in Q1 2021/22 marked by an exceptional basis for comparison driven by the first period of confinement

Focus Home Interactive’s revenue was down 36% to € 41.2 million in the first quarter of 2021/22. Digital sales are stable and represent 90% of Q1 2021/22 revenue.

This quarter was marked by the exits of Necromunda Hired Gun, Warhammer Age of Sigmar: Storm Ground and Hood Outlaws & Legends. While Necromunda’s Gun, developed by StreumOn Studio, the Group’s latest acquisition, has met with great success, the other two games have had mixed success.

As for Hood Outlaws & Legends, the teams are currently working on a new game mode (PvE), as well as new content and optimizations that should help boost and improve player engagement and retention. This quarter also saw SnowRunner brought to Nintendo Switch and Steam as well as the launch of season 2. The Group also announced the release of Exodus, a new PC extension for the best-selling title Insurgency: sandstorm. Catalog sales amounted to 17.0 million euros, down 54% compared to last year, which was the highest quarter in the Group’s history.

Back-catalog turnover amounted to 23.8 million euros, down 11% compared to last year, which was also a high basis for comparison. This first quarter of 2021/22 was marked by SnowRunner, World War Z and Greedfall good performance.

Perspectives

Due to the health context, which strongly impacted the game’s development process, Focus Home Interactive has decided to postpone the release of several titles in order to provide the best possible experience for players. The additional development time will allow us to collect other player feedback via playtests and thus improve the optimization and the finishing phases of the games.

Focus Home Interactive’s editorial line is distinguished by innovative concepts and the Group wishes to continue to offer unique experiences to players around the world. The latest releases highlight how quality and user experience are essential in turning game concepts into business successes.

Focus Home Interactive now anticipates revenues:

  • for fiscal year 2021/22 between € 120m and € 150m (at constant scope)

  • for fiscal year 2022/23 between 150 and 200 M € (at constant scope)

In the short and medium term, Focus Home Interactive is developing and financing ambitious games with its German studio Deck13 and its French studio StreumOn, as well as around fifteen partner studios such as Asobo, Saber, Dontnod Entertainment, Tindalos Interactive, etc. will allow its growth story to continue.

New bank financing in place

July 20e, the Group signed a new financing plan of 140 million euros, in addition to the capital increase of 70.4 million euros carried out in May 2021. This new financing is structured as follows

  • Syndicated bank loan of 80 million euros from a pool of 7 banks with a repayable tranche, a bullet tranche and a revolving credit with maturities up to 6.5 years

  • A Euro PP of 50 million euros subscribed to with 3 institutional investors with a maturity of 7 years

  • And a loan of 10 million euros from the BPI.

This new unsecured financing will allow the Group to (i) refinance its current syndicated loan, (ii) respond to its future development projects and (iii) accelerate its international and national growth through acquisitions. The financing consists of a drawn portion and a portion that can be drawn over 36 months depending on investment or external growth needs.

This financing offers the Group many advantages: (i) optimized financing conditions, (ii) reduced amortisable maturities with an increased proportion of end-to-end financing, and (iii) diversification of financing sources with a pool of banks of benchmark, international banks institutional investors.

Events to come

Event

Dated

Annual General Meeting 2021/22

September 23, 2021

2021/22 – 2sd quarterly sales

21 October 2021

2021/22 – 3rre Quarterly sales and HY results

January 20, 2022

2021/22 – 4e quarterly sales

April 21, 2022

2021/22 – Results of the financial year

June 24, 2022

About Focus Home Interactive

INTERACTIVE HOME FOCUS is one of the leading video game publishers and developers in Europe. Its vocation is to support the largest international studios in the development, production monitoring, marketing, sales and financing of their projects. Publisher of strong brands such as The Surge, Vampyr and A Plague Tale: Innocence, the Group achieved a turnover of 171 million euros in 2020/21, up 20% compared to the previous comparable period. FOCUS HOME INTERACTIVE generates 95% of its turnover abroad. For more information visit www.focus-home.com

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