REVISION OF THE ESTIMATED 2020/2021 ANNUAL RESULTS
A review of (i) the accounting treatment of transactions related to digital assets and (ii) the fair value of development costs for free-to-play mobile games capitalized on the balance sheet has led to a downward revision of results compared with the estimates communicated on
Press release -
The budget forecasts resulting from the new strategy aimed at discontinuing unprofitable activities and simplifying the Group's organization in order to return to profitability and the accounting treatment of new activities (transactions related to digital assets and the Atari VCS) have led to a delay in the preparation of the 2020/2021 accounts.
The audit procedures for the consolidated financial statements have been completed, the certification report will be issued after finalization of the review of the notes to the consolidated financial statements and of the Universal Registration Document.
The General Meeting initially convened for
Accounting treatment of transactions related to digital assets. With the Atari Token, the
In its earnings estimates published on
Discussions between the
The Atari Blockchain division is developing the ecosystem related to Atari Tokens, notably by expanding the adoption and use cases of the Atari Token already present on the opensea.io and Decentraland platforms and those coming soon with the Atari virtual world within the Alphaverse project.
Book value attributed to development costs of free-to-play mobile games capitalized on the balance sheet. The strategic review and the finalization of the budget for 2021/2022 and subsequent years led the Group to perform various impairment tests by comparing each of its assets to its recoverable value. As a result of these tests, the Group has recognized impairment losses in an additional amount of €3.6 million, Should the recoverable amount of these assets increase in a subsequent period, these impairment losses would be reversed through the income statement.
The new strategy of the video game division,
The loss for the financial year 2020/2021 is mainly due to calculated expenses (additional depreciation and amortization charges) and the delay in revenue recognition of the Atari Token activities, which have no impact on the Group's net cash position.
For 2021/2022, a transition year implementing the change in strategy, the financial objective is to put in place the profitability levers for the years to come, with priority given to the monetization of the intellectual property portfolio (games and licenses).
The Company has carried out a specific review of its liquidity risk and considers that (i) the working capital requirements related to the ramp-up of the production of the Atari VCS, and (ii) the development of the new strategy for the video games division will require external financing or a capital markets transaction, the form of which is currently being evaluated. With the financial support of its new principal shareholder and Chairman and CEO, the
Impact of the revision on the consolidated income statement
IFRS in M€ | Estimates published | Revised estimates |
Revenue | 21.4 | 18,9 |
Cost of goods sold | (5.2) | -5,5 |
GROSS MARGIN in % of revenue | 16.2 75.7% | 13,4 70,3% |
Research and development expenses | (7.9) | (7,9) |
Marketing and selling expenses | (2.6) | (2,6) |
General and administrative expenses | (6.3) | (6,3) |
Other operating income (expenses) | 0,0 | 0,0 |
CURRENT OPERATING INCOME | (0.6) | (3,4) |
Other income (expenses) | (4.6) | (8,2) |
OPERATING INCOME | (5.2) | (11,6) |
Cost of debt | (0.1) | (0,1) |
Other financial income (expenses) | (0.2) | (0,1) |
Share of net operational profit of equity affiliates | - | (0,1) |
Income tax | (0.0) | (0,0) |
CONSOLIDATED NET INCOME | (5.5) | (11,9) |
Group Share | (5.4) | (11,9) |
Impact of the revision on the consolidated balance sheet
ASSETS (IFRS, M€) | Estimates published | Revised estimates |
Intangible assets | 15.2 | 11,6 |
Property. plant and equipment | 0.0 | 0,0 |
Right of use assets related to leases | 1.9 | 1,9 |
Non-current financial assets | 16.0 | 15,8 |
Deferred tax assets | 1.9 | 1,9 |
NON-CURRENT ASSETS | 35.0 | 31,3 |
Inventories | 2.5 | 2,5 |
Trade receivables | 3.2 | 3,3 |
Current tax assets | 0.0 | 0,0 |
Other current assets | 0.6 | 0,6 |
Cash and cash equivalents | 2.5 | 2,5 |
Assets held for sale | 0.3 | 0,3 |
CURRENT ASSETS | 9.1 | 9,1 |
TOTAL ASSETS | 44.1 | 40,4 |
LIABILITIES (IFRS, M€) | Estimates published | Revised estimates |
Share capital | 3.0 | 3,0 |
Share premium | 19.1 | 19,1 |
Consolidated reserves | 14.0 | 14,0 |
Net income – Group share | (5.4) | 11.9 |
SHAREHOLDERS’ EQUITY (GROUP SHARE) | 30.6 | 24,2 |
Minority interests | (0.0) | (0,0) |
TOTAL CONSOLIDATED EQUITY | 30.6 | 24,2 |
Provisions for non-current contingencies and losses | 0.0 | 0,0 |
Non-current financial liabilities | - | - |
Long term lease liabilities | 1.6 | 1,6 |
Deferred tax liabilities | - | - |
Other non-current liabilities | 0.7 | 0,7 |
NON-CURRENT LIABILITIES | 2.3 | 2,3 |
Provisions for current contingencies and losses | - | - |
Current financial liabilities | - | - |
Current lease liabilities | 0.3 | 0,3 |
Trade payables | 7.3 | 7,3 |
Current tax liabilities | - | - |
Other current liabilities | 3.5 | 6,3 |
CURRENT LIABILITIES | 11.2 | 13,9 |
TOTAL EQUITY AND LIABILITIES | 44.1 | 40,4 |
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
Tel: +46 8 121 576 90 – certifiedadviser@redeye.se
This is information that
Attachment
- 2021 10 18 Resultats FY-2020-2021
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