ANNUAL RESULTS 2020/2021
A transition year and implementation of a new strategy allying premium games, Atari VCS, Blockchain/NFTs and Licensing
Press release -
With the appointment of
CONSOLIDATED FINANCIAL RESULTS AS OF
IFRS in €M | Variation | ||
Revenue | 21.4 | 24.0 | -10.9% |
Cost of goods sold | (5.2) | (2.4) | |
GROSS MARGIN in % of revenue | 16.2 75.7% | 21.6 90.0% | -25.1% |
Research and development expenses | (7.9) | (9.8) | |
Marketing and selling expenses | (2.6) | (4.2) | |
General and administrative expenses | (6.3) | (4.7) | |
Other operating income (expenses) | 0.0 | (0.1) | |
CURRENT OPERATING INCOME | (0.6) | 2.9 | -121% |
Other income (expenses) | (4.6) | 0.0 | |
OPERATING INCOME | (5.2) | 2.9 | |
Cost of debt | (0.1) | (0.0) | |
Other financial income (expenses) | (0.2) | (0.8) | |
Income tax | (0.0) | (0.1) | |
CONSOLIDATED NET INCOME | (5.5) | 2.0 | |
Group Share | (5.4) | 2.3 | |
Minority interests | (0.0) | (0.3) |
BUSINESS OVERVIEW AND REVENUE
As of
OPERATIONS AND RESULTS
The evolution of the gross margin from 90.0% in the previous year to 75.5% of revenue takes into account the first deliveries of the Atari VCS, a business line with a lower margin than the other businesses of the Group.
Research and development expenses are significantly lower due to lower amortization of capitalized R&D costs from previous years but also due to lower levels of investments in the development of new games.
Marketing expenses decreased significantly as a result of the focus on profitability in the video games business through reduced and more targeted user acquisition campaigns.
The increase in general and administrative expenses is related to legal fees for successful litigation outcomes of copyright infringement proceedings for an amount of €0.5m, and a €1.1m non-cash expense resulting from the allocation of Atari Tokens granted to certain members of the Group.
As a result of these elements, the current operating income amounts to a loss of €0.6m€, of which -€0.8m are related to the African casino operations whose wind down has been decided, compared to an operating profit of €2.9m for the previous year.
Other operating income and expenses amount to -€4.6m and reflect the impact of write-downs recorded as a result of the strategic review conducted by the Group.
The cost of debt is not material as the Group is debt free and corresponds mainly to the IFRS 16 restatements of the financing component of leases.
Other financial income and expenses primarily concern adjustments in the value of non-current financial assets and the administration fees of the company’s securities.
Subject to the finalization of the budget regarding the fair value of R&D costs for games capitalized on the balance sheet, consolidated net income (Group share) for the year amounts to -€5.5m, compared with €2.0m in the previous year.
KEY BALANCE SHEET AND CASH FLOW ITEMS
The detailed balance sheet, prepared in accordance with IFRS, is included as an appendix.
Consolidated shareholders’ equity amounted to €30.6m at
Total fixed assets amounted to €35.0 million, of which €13.3 million was attributable to capitalized R&D costs for games and €14.3 million to long-term receivables. In the context of the evolution of the current strategy, the budget for 2021/2022 is under review. The finalization of this budget may impact the fair value attributed to R&D costs for games capitalized on the balance sheet, depending on the continued exploitation, discontinuation or sale of these games. All these options are currently being examined.
As at
STRATEGY & OUTLOOK 2021-2022
The strategy of the
The video games division is already executing against an initiative to broaden its portfolio, which includes publishing premium games for the VCS, PC and console, republishing classic IP, and focusing on the most profitable and high-potential free-to-play games in its portfolio. It has recently announced the launch of a new version of the classic game Food Fight in early 2022 and has greenlit a number of additional new titles for release over the next 12 months. The first new games will launch in September of this year.
As it prepares to celebrate 50 years since it launched the video game industry, Atari is committed to fully leverage the more than 200 titles in its IP catalog. Classic games first published in the 70s, 80s and 90s will be optimized and republished on PC, PlayStation, Switch, Xbox and the new Atari VCS.
The flagship mobile title, Rollercoaster Tycoon Touch (available on iOS, Android and Facebook Cloud) celebrated its four-year anniversary in March and is still gaining loyal players from around the world. Player engagement is even on the rise with the introduction of new, ’always-on’ seasonal events and new attractions based on classic Atari games.
Two new free-to-play games are slated for full release in Q4 of this calendar year, including a new Rollercoaster Tycoon franchise entry, RollercoasterTycoon Idle, and the RPG title Mob Empire.
ATARI VCS
The Atari VCS began shipping to original backers at the end of 2020 for the pre-orders made through the
In the coming months, Atari will continue to build out the content offerings and capabilities of the VCS including:
- Food Fight – Recently-announced reimagining of the arcade & 7800 classic, coming first to Atari VCS in 2021 with exclusive features.
- Additional indie publishers and developers bringing innovative and original games to the platform, including Graffiti Games, Akupara, and others.
- More Atari franchise ports, such as Tempest 4000, Rollercoaster Tycoon and others.
- Native retro emulation, starting with titles from the Atari 7800 and DOS PC games.
- Atari VCS Homebrew Initiative, offering creator and community sharing tools for amateur game makers.
- Cloud game streaming with direct access to popular services like Stadia, GeForce Now, Luna and Xbox
- Enhanced productivity with direct access to Google’s G-Suite of Gmail, Sheets, Slides and other apps.
- Streamlined access to PC Mode, with easy-to-use USB thumb drive accessories.
LICENSING
ATARI BLOCKCHAIN
This new division was created as of
The strong growth and rise in popularity of NFTs and blockchain based games and online worlds validate Atari’s positioning in this new ecosystem. Atari has established early mover positions through strong partnerships with leading players including
In the coming months, Atari will continue to strengthen its commitment to offer NFTs with the launch of a dedicated NFT marketplace for curated video game related NFT drops. Atari’s objective is to onboard the large community of Atari fans and video gaming enthusiasts onto the world of true digital ownership enabled by blockchain technology, with NFTs becoming a gateway to unlocking a wider range of games and experiences.
ANNUAL SHAREHOLDERS MEETING 2021
The Annual Shareholders Meeting will be convened at the time of publication of the Universal Registration Document, including the management report, the annual financial report and the corporate governance report.
Disclaimer:
The realization of the plans, and their operational budget and financing plan remain inherently uncertain, and the non-realization of these assumptions may impact their value.
About Atari:
Atari, comprised of
Contacts
Atari -
Tel +33 1 83 64 61 57 - pm@atari-sa.com Tel + 33 1 53 65 68 68 – atari@calyptus.net
Tel: +46 8 121 576 90 – certifiedadviser@redeye.se
This is information that
APPENDIX : CONSOLIDATED BALANCE SHEET
ASSETS(M€) | ||
Intangible assets | 15.2 | 17.8 |
Property. plant and equipment | 0.0 | 0.0 |
Right of use assets related to leases | 1.9 | 2.3 |
Non-current financial assets | 16.0 | 15.7 |
Deferred tax assets | 1.9 | 2.1 |
NON-CURRENT ASSETS | 35.0 | 38.0 |
Inventories | 2.5 | 0.6 |
Trade receivables | 3.2 | 2.8 |
Current tax assets | 0.0 | 0.0 |
Other current assets | 0.6 | 0.7 |
Cash and cash equivalents | 2.5 | 1.8 |
Assets held for salee | 0.3 | - |
CURRENT ASSETS | 9.1 | 5.8 |
TOTAL ASSETS | 44.1 | 43.8 |
LIABILITIES (M€) | ||
Share capital | 3.0 | 2.7 |
Share premium | 19.1 | 11.0 |
Consolidated reserves | 14.0 | 12.5 |
Net income – Group share | (5.4) | 2.3 |
SHAREHOLDERS’ EQUITY (GROUP SHARE) | 30.6 | 28.5 |
Minority interests | (0.0) | (0.4) |
TOTAL CONSOLIDATED EQUITY | 30.6 | 28.1 |
Provisions for non-current contingencies and losses | 0.0 | 0.0 |
Non-current financial liabilities | - | 0.9 |
Long term lease liabilities | 1.6 | 2.1 |
Deferred tax liabilities | - | - |
Other non-current liabilities | 0.7 | 0.8 |
NON-CURRENT LIABILITIES | 2.3 | 3.7 |
Provisions for current contingencies and losses | - | 0.1 |
Current financial liabilities | - | 0.6 |
Current lease liabilities | 0.3 | 0.3 |
Trade payables | 7.3 | 5.7 |
Current tax liabilitites | - | 0.0 |
Other current liabilities | 3.5 | 5.2 |
CURRENT LIABILITIES | 11.2 | 11.9 |
TOTAL EQUITY AND LIABILITIES | 44.1 | 43.8 |
***
Attachment
- 2021 08 16 Results FY-2020-2021 VEN
© OMX, source