Results of the first half of 2021-2022
Press Release -
The first half of the financial year 2021-2022 ended on September 30, 2021 and the financial results as well as the semi-annual financial report have been reviewed and approved by the Board of Directors on January 17, 2021. The semi-annual financial report is available on the website of the Group (www.atari-investisseurs.fr) and has been filed today with the “Autorité des marchés financiers” (AMF).
Highlights of the first half of 2021-2022 (
- Appointment of
Wade Rosen as CEO inApril 2021 , replacingFrédéric Chesnais - Complete review of the business and implementation of a new strategy, aiming at an improvement in profitability, focused on the development of new premium games (PC & console), with the discontinuation of certain mobile free-to-play games and the withdrawal from the
Atari Casino operations inAfrica . - Implementation of the new strategy leading to a decrease in revenue (-23.8%) in the context of the transition to premium games and of the significant decline of the licensing business, still heavily impacted by the effects of the pandemic
- Launch of retail sales of the Atari VCS in
the United States , contributing 2.3 M€ of revenue June 2021 : Licensing agreement with CBI, a company founded and managed byFrédéric Chesnais , for the development of a virtual world (blockchain technology) in the image of the Atari brand. Resignation ofFrédéric Chesnais from the Board of Directors ofAtari SA to prevent conflicts of interest.
Highlights of the second half of 2021-2022 (October 1, 2021 to March 30, 2022) :
- Sale of land NFTs in The Sandbox to Republic Realm for 4.3 M$
US$3.5M strategic investment in the streaming platformAntstream Limited and a related option to purchase the assets of Mobygames, the world’s largest video game database- Launch of the first premium games: Asteroids Recharged, Black Widow Recharged, Centipede Recharged, available on the Atari VCS as well as all major consoles and PC.
- Financing through shareholder loans: In order not to impact the Group’s cash position in the context of its requirements to source components for the Atari VCS, the Company was granted two loans in July, August and
October 2021 , by two shareholders, for a total ofUS$2.6M .IRATA LLC , a company controlled byWade Rosen , contributedUS$2.1M to this operation.
Results of the first half 2021-2022
IFRS, in M€ | 2021/2022 (April – Sept.) | 2020/2021 (April – Sept.) | Variation % |
Revenue in millions of euros | 6.0 | 7.8 | -23.8% |
Cost of sales | (2.6) | (1.5) | |
GROSS PROFIT MARGIN | 3.3 | 6.3 | -47.1% |
% of turnover | 56% | 81% | |
Research and development costs | (3.5) | (4.0) | |
Marketing and commercial expenses | (0.6) | (1.5) | |
General and administrative expenses | (2.1) | (2.0) | |
Other operating income (expense) | - | 0.0 | |
CURRENT OPERATING INCOME | (2.8) | (1.2) | -143.6% |
Other income (expense) | - | - | |
OPERATING INCOME | (2.8) | (1.2) | -143.6% |
Cost of debt | (0.0) | (0.1) | |
Other financial income (expense) | 0.2) | (0.3) | |
Share of net operational profit of equity affiliates | (0.1) | 0.0 | |
Income tax | (0.0) | (0.0) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (2.8) | (1.5) | -80.4% |
Net income (loss) from discontinued operations | (0.7) | - | |
NET INCOME OF THE CONSOLIDATED ENTITIES | (3.5) | (1.5) | |
Share attributable to the Group | (3.5) | (1.4) | |
Share attributable to minority interests | (0.0) | (0.1) |
For the first half of the financial year 2021-2022 (
Revenues relating to the new activities developed on the blockchain represented 0.4M€, corresponding to income from NFT sales under a licensing agreement.
The gross margin level stands at 56% of turnover during the period compared to 81% for the previous period. This reflects the growing share of Atari VCS sales, whose margin is lower than that of the other games and licensing businesses of the Group.
R&D expenses are 13.4% lower due to a reduction in the amortization expenses related to R&D capitalized in previous years but also due to reduced investments in the production of new games.
Marketing and sales expenses amounted to 0.6M€ for the first half of the financial year 2021-2022. The reduction of 61% is the result of the optimization of the free-to-play games’ profitability, enabled by a drop in user acquisition costs. General and administrative expenses amounted to 2.1M€ and remained stable compared to the previous period.
In this context, the Group generated a current operating profit of -2,8 M€ during the first half of 2021-2022, compared to -1.2 M€ in the first half of 2020-2021.
Other financial income and expenses are mainly related to the accretion of long-term receivables for +€0.2M and secondary listing costs on the Nasdaq Stockholm market for -€0.1M. As a reminder, the listing of the Swedish Depositary Receipts (SDRs) on the Nasdaq First North Growth market in
Following the decision to withdraw from the directly-operated casino activities in
Net income of the consolidated entities thus amounts to -3.5M€, compared to -1.4M€ for the first half of 2020-2021.
Balance Sheet as at September 30, 2021
ASSETS (in millions of euros) | ||
Intangible assets | 11.0 | 11.6 |
Property, plant and equipment | 0.0 | 0.0 |
Right of use assets related to leasing contracts | 1.7 | 1.9 |
Equity affiliates | 0.0 | 0.0 |
Non-current financial assets | 15.8 | 15.8 |
Deferred tax assets | 1.9 | 1.9 |
NON-CURRENT ASSETS | 30.4 | 31.3 |
Inventories | 1.6 | 2.5 |
Trade receivables | 4.2 | 3.3 |
Current tax assets | 0.0 | 0.0 |
Other current assets | 2.8 | 0.6 |
Cash and cash equivalents | 0.8 | 2.5 |
Assets held for sale | 0.0 | 0.3 |
CURRENT ASSETS | 9.5 | 9.1 |
TOTAL ASSETS | 39.9 | 40.4 |
EQUITY & LIABILITIES (in millions of euros) | ||
Capital | 3.1 | 3.0 |
Share premium | 31.4 | 19.1 |
Consolidated reserves | 2.9 | 14.0 |
Net income Group share | (3.5) | 2.3 |
SHAREHOLDERS’ EQUITY GROUP SHARE | 23.9 | 24.2 |
Minority interests | (0.0) | (0.0) |
SHAREHOLDERS’ EQUITY OF CONSOLIDATED ENTITIES | 23.9 | 24.2 |
Provisions for non-current contingencies and losses | 0.0 | 0.0 |
Non-current financial liabilities | 1.1 | - |
Deferred tax liabilities | 1.5 | 1.6 |
Other non-current liabilities | 0.7 | 0.7 |
NON-CURRENT LIABILITIES | 3.3 | 2.3 |
Provisions for current contingencies and losses | - | - |
Current financial liabilities | - | - |
Current lease liabilities | 0.3 | 0.3 |
Trade payables | 6.9 | 7.3 |
Current tax liabilities | - | - |
Other current liabilities | 5.2 | 6.3 |
Liabilities held for sale | 0.2 | - |
CURRENT LIABILITIES | 12.7 | 13.9 |
TOTAL EQUITY & LIABILITIES | 39.9 | 40.4 |
Non-current financial assets include 14.2M€ of trade receivables with a maturity of more than one year, compared to 14.3M€ as of
Other current liabilities of 5.2M€ notably include 3.7M€ of deferred revenue : 2.7M€ for sales and allocations of the Atari Token, 0.4M€ for pre-orders of the Atari VCS in the process of being fulfilled and 0.8M€ for hotel licensing revenues.
Outlook for 2021/2022
The Group is targeting improved financial performance in the second semester over the first six months of the fiscal year. This is performance is driven by several key projects:
- Release of new premium games, beginning with the Atari Recharged line-up of game titles
- The launch of Atari XP, which allows fans to purchase unreleased or rare Atari cartridges
- New licensing opportunities for classic Atari games with streaming providers
- Expanded opportunities with brand licensing partners as licensing demand recovers from pandemic related interruptions
ATARI VCS
- The VCS is available for sale for the entirety of the second semester
- Increased digital sales through the VCS platform as more game content is added
ATARI BLOCKCHAIN
- Sale of a portion of Atari land in the Sandbox metaverse
- Development of new NFT products leveraging the large portfolio of Atari IP as well as partnerships with third-parties
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:
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Contacts
Atari -
Tel +33 1 83 64 61 57 - pm@atari-sa.com Tel + 33 1 53 65 68 68 – atari@calyptus.net
APPENDIX
Net cash position at
Net cash position (in millions of euros) | ||
Shareholder loan | (1.1) | - |
Non-current | (1.1) | - |
Current financial liabilities | - | - |
Current | - | - |
Gross financial debt | (1.1) | - |
Cash and cash equivalents | 0.8 | 2.5 |
NET CASH POSITION | 0.2 | 2.5 |
Attachment
- CP 2022 01 17 Resultats semestriels
VEN DEF
© OMX, source