FOCUS HOME INTERACTIVE (EPA:ALFOC) Focus Home Interactive : A record year for the Group: Solid business and profit levels. 2018/2019 revenue: €126m, Operating income: €14.1m. Increase in Sales Guidance for March 2022: €150m - €200m.
Increase in Sales Guidance for March 2022: EUR150m - EUR200m
French video games publisher, FOCUS HOME INTERACTIVE (FR0012419307 ALFOC), has
reported its annual earnings for its fiscal year 2018-2019. The Management
Board met on June 24, 2019 to approve the financial statements for the fiscal
year ended March 31, 2019. The audit procedures were duly completed and the
auditors' report is in the process of being issued.
Income March 31, 2019 March 31, 2018 March 31, 2018
statement in EURm (*) 15 months (**)
Consolidated financial 12 months Audited 12 months
Revenue 126.0 89.9 75.9
Studio royalties -73.9 -49.7 -41.1
ancillary costs -15.5 -13.0 -10.8
Gross margin 36.6 27.2 24.0
% of revenue 29% 30% 32%
Personnel expenses -8.3 -8.7 -7.2
costs -14.2 -9.0 -7.2
Operating income 14.1 9.5 9.6
% of revenue 11% 11% 13%
Group net income 8.0 6.5
% of revenue 6% 7%
(*) The audit procedures were duly completed. The reports will be issued once
the procedures required for the purposes of publishing the annual financial
report have been finalised.
(**) As the Group changed its tax period, the financial statements at March 31,
2018 were presented for a 15-month period. Accordingly, a comparative is
presented for the 12-month period from 01/04/2017 to 31/03/2018).
A record year for the Group
With a turnover of EUR126M exceeding by more than 20% the guidance announced by
the management, 2018-2019 was remarkable for the Group, which once again
demonstrated its breadth of expertise in establishing successful new brands and
continuing to operate and generate profits from strong product licences.
The year got off to an excellent start with the release of DONTNOD studio's
Vampyr, which met with worldwide commercial and critical success, and sold more
than one million copies. These excellent sales figures put the game at the top
of the best physical and digital sales in major territories in North America
and Europe. The Group recently announced the renewal of its partnership with
DONTNOD for a project that promises to be the most ambitious to date for both
Focus also generated record sales from Farming Simulator 19, which has sold
more than two million copies to date and tops best-seller rankings in various
countries around the globe. The "Farming" experience will be enriched over the
coming months with the release of several additional content items and a new
On the tails of the success of the million seller MudRunner, this year saw the
release of an
American Wilds edition offering further enhancements to this ultimate off-road
New content, new American settings, and well-known vehicle have attracted a
growing and loyal audience base to this Saber franchise.
December saw the release of Insurgency: Sandstorm. In only a few weeks, New
World Interactive's hardcore title sold more than half a million copies on
Steam, with regular updates, additional content and new game modes attracting
more and more devoted fans.
Finally, the Group ended the year with the release of Battlefleet Gothic:
Armada 2, the highly anticipated continuation of the successful Games Workshop
franchise, showcasing some epic space battles in the Warhammer 40k universe.
Over the fiscal year, the back-catalogue accounts for 25% of total sales, with
90% of sales generated internationally and digital sales representing 66%.
Sharp increase in operating income (+47.6%) and net income (+23.6%)
The Group's unprecedented level of business has gone hand in hand with growth
in its earnings. The gross margin came out to EUR36.6m, or 29% of revenues,
compared to EUR27.2m at March 31, 2018, a fiscal year that was exceptionally 15
months long due the change in the Group's balance sheet date. This increase in
business did not come at the expense of profitability, as the Group's operating
margin held steady from the previous year at 11%, thereby illustrating its
excellent control of operating expenses. Operating income was EUR14.1m, up
Group net income totalled EUR8.0m and included net financial items of -EUR0.1m,
exceptional income of -EUR2.0m (primarily due to severance payments linked to
the departure of the former chairman) and an income tax expense of EUR4.0m.
Equity was stable overall at EUR44.6m. With net debt of -EUR18.8m compared to
-EUR7.8m previously, the Group's balance sheet is solid.
The Management Board will be proposing a dividend of EUR0.30 per share at the
AGM on September 24, 2019.
A very promising 2019-20 catalogue
Fiscal year 2019-20 kicked off with the launch of Saber's World War Z, adapted
from the Paramount film of the same name, the cooperative shooter inspired by
Paramount Pictures' blockbuster film, which exceeded 2 million copies sold a
few weeks after its release.
A Plague Tale: Innocence of Asobo released on May 14, 2019 also kept its
promises with an excellent commercial launch and a unanimous critical welcome.
It was also voted by the players "May's Best New Game" on Playstation.us.blog,
the official US portal dedicated to the Playstation universe.
The year-end will bring the release of blockbusters such as GreedFall and
eagerly awaited sequels The Surge 2 and MudRunner 2 developed by Spiders,
Deck13 and Saber respectively, which have already garnered a huge following.
These were presented to the global media at the Focus What's Next 2019 event
held on 10 and 11 April, where they impressed journalists and visitors alike.
12 new projects signed by Focus
Held in the heart of Paris, the Group's annual What's Next event brought
together global media, studios, and partners over two days to reveal more
details of the Focus 2019 catalogue. Following announcements on the Group's
strategy, attendants discovered 12 new partnerships signed by Focus for titles
that will be developed and released over the next three years.
Focus is proud to renew key partnerships with talented players such as DONTNOD
Entertainment (Vampyr), SABER Interactive (MudRunner, World War Z), DECK13 (The
Surge), ASOBO (A Plague Tale), STREUM ON (Space Hulk: Deathwing), and PASSTECH
Games (Space Run). It will embark on new partnerships with industry veterans
such as SUMO Digital (Eve: Valkyrie), GASKET Games (former members of Relic
Games- Dawn of War), and promising new studios such as LIMESTONE Games and
LIGHTBULB Crew. The Group also announced an agreement with historical partner
Games Workshop for the development of three new Warhammer games, and a
partnership with Chaosium for the exclusive operation of a series of Call of
Cthulhu video games over the next ten years.
Drawing on the momentum of market growth, the Company's expanding influence and
future deals, the Group also announces (like-for-like) that it is raising its
guidance for sales at the end of March 2022: EUR150m - EUR200m.
About Focus Home Interactive
Focus Home Interactive is a French publisher based in Paris, France. Known for
the quality, diversity and originality of its catalogue, Focus has published
and distributed original titles (Vampyr, Farming Simulator, Call of Cthulhu,
Insurgency: Sandstorm) that have become benchmark titles worldwide, available
both in store and for download across the world. Focus publishes games on all
major platforms, consoles and PC. The publisher's catalogue will get even
richer in the coming months and years with eagerly awaited games such as A
Plague Tale: Innocence, World War Z, The Surge 2, MudRunner 2, GreedFall and
many more. The Group generated revenues of EUR126m in 2018-19. FOCUS HOME
INTERACTIVE generates 90% of its sales internationally.
Q1 2019/2020 revenue
July 25, 2019
September 24, 2019
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