Last night, Innelec published a lower-than-expected result for the first half of its 2023-2024 financial year, a disappointment that was harshly punished on the stock market.
On Wednesday, the video game specialist reported a 28% increase in half-year sales to 84.5 million euros, with recurring operating income of 1.38 million euros, compared with 1.01 million a year earlier.
In a reaction note, Euroland analysts highlight results below their expectations, leading them to revise downwards their sales estimate for 2023/2024, to 181.9 from 196 million euros previously.
After updating its model, the brokerage firm says it remains Buy on the share, but with a price target reduced to nine euros, from 9.5 euros previously.
Innelec is approaching the second half of the year with a degree of caution, and expects sales to be 'flat' over the period and compared with last year", say its teams.
While the company expects half-year sales to be roughly on a par with the same period last year, its margin rate is expected to be higher than in the first half, thanks to a more favorable product mix.
With regard to its medium-term forecasts, Innelec said it was "confident" in its development prospects.
Despite this optimism, the share price fell by more than 17% on Thursday mid-day on Euronext Paris.
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Innelec Multimédia is the leading French distributor of consumer and professional software. Net sales break down by family of products as follows:
- game consoles, console software and accessories (80.4%): action and combat, sports and racing, adventure, and other games under the names PlayStation, Gameboy, Switch and X-Box;
- derivative products under license (9.6%): figurines, t-shirts, caps, bags, key rings, mugs, etc. under the brands Super MarioTM, ZeldaTM, PokémonTM, LEGOTM, Star WarsTM, SimpsonsTM, Harry PotterTM, Call of DutyTM, Assassin's CreedTM, Games of ThroneTM, etc.;
- mobile devices and accessories and connected products (5.7%);
- recreational CD Rom and accessories for PC (2.1%);
- professional software and accessories (0.1%): office, graphics, utility, communication, management, and training software;
- other (2.1%).
Products are marked through retailers split between local shops and professional retailers, hypermarkets and department stores, and multi-specialist.
Net sales are distributed geographically as follows: France (86.8%), Europe (7.7%), Africa (2.8%) and other (2.7%).
INNELEC MULTIMÉDIA 
