PRESS RELEASE: BIGBEN: 1ST QUARTER 2020/21 SALES

Press release

          Lesquin, 27 July 2020 18:00 hrs

1^st quarter 2020/21 sales: €55.2M (-5.8%)

·Good trend for Nacon Gaming: +24.5%.

·Audio-Telco impacted by the health crisis - upturn in June

Recovery expected in 2^nd quarter 2020-21 and confirmation of the targets of the Bigben 2023 strategic plan

^{Non audited data}

Growth of Gaming sales in Q1 2020/21

Bigben achieved 55.2 M€ sales in the 1st quarter of 2020/21 (April, May, June 2020), down 5.8%. As previously announced, business was impacted by the effects of the Covid-19 health crisis which led to a contraction in the consumption of Audio/Telco products over the first two months.

NACON GAMING 

Nacon Gaming business grew by 24.5% in the 1st quarter of 2020/21 with 38.0 M€ sales. 

• Due to a strong comparison basis linked to the release of several major titles at the beginning of last year, Games sales were down at 14.5 M€ (vs. 20.0 M€ for Q1 2019/20). Thanks to the acceleration of digital sales during the lockdown, Nacon offset the reduction in the number of releases with a 340% jump in back catalogue sales to 10.8 M€, which is already equivalent to previous year 12 month sales. Digital sales accounted for 80.7% of Games sales. The releases of Hunting Simulator® 2 and Pro Cycling Manager /Tour de France® 2020 over the period fulfilled expectations. 
• Sales of Accessories were boosted by a very active market. In particular, the headset segment grew sharply thanks to the success of the RIG premium brand acquired in March 2020 and the opening of Nacon's subsidiary in the United States.

BIGBEN AUDIO/TELCO

• Mobile Accessories posted 14.8 M€ sales in Q1 2020/21, down 35.4%. This strong decrease is due to the closure of stores (excluding hypermarkets) during the lockdown and their very gradual reopening. In the first quarter of 2020/21, Bigben successfully marketed a sanitary range offering masks, sanitary kits, Ultra-Violet sterilizers for both smartphones and wireless headsets, and disinfectant sprays. Nearly 2 million masks were sold. At the same time, the Group intensified its diversification strategy towards sustainable development-oriented offers with the launch of a Justgreen® range of "eco-friendly" accessories. This range, which has been very well received by the market, will complement the Force® own-brand range, of which 6 million products have already been sold since its creation.
• Audio, which posted 2.4 M€ sales in the first quarter of 2020/21, down 50.5%, also suffered from the closure of points of sale. Over the period under review, the Group increased its distribution channels, targeting in particular decoration stores, and had some of its products listed with two major national retail chains, offering new prospects for development in the coming months.

Outlook

The upturn in consumption in June for the Audio-Telco segment, which was reflected in a rise in sales compared with June 2019, points to a better 2nd quarter 2020/21 for the Bigben-Audio/Telco business unit which, combined with ongoing robust Gaming sales, should allow the Bigben Group a quick return to growth.

NACON GAMING 

• The expected release of 2 new games (WRC®9 and Tennis World Tour®2) will contribute to the growth of Games turnover, which will also benefit from digital sales which should maintain their momentum.
• Gaming Accessories should confirm their growth potential given the customer re-orders (RIG headsets and controllers) generating a large backlog.

BIGBEN AUDIO/TELCO

• In the second quarter of 2020/21, Mobile accessories should continue the recovery that began in June 2020 thanks to good listings and the launch of new eco-friendly product offerings now popular with consumers (notably the antibacterial treatment on Force® and the rapid deployment of the Justgreen® ranges). Bigben also has high ambitions for its anti-UV sterilizers of which 20,000 units have already been sold.  The Group has also acquired a French case manufacturing unit. Bigben thus intends to internalize part of its supply sources and focus on the "made in France" sought after by its consumers.
• For Audio products, the recent listings with national retailers in addition to those already in place will enable Bigben to further distribute its products in the new "trendy" channels for decorative objects by intensifying its promotional campaigns to boost sales.

For the second half of the year, the Group is confident in its ability to bounce back after a first quarter of the year hallmarked by exceptional circumstances.

NACON GAMING

·Thriving digital sales, new game releases (Monster Truck Championship, Warhammer Chaosbane® on PS5, Handball 21, Werewolf: the Apocalypse® - Earthblood, Rogue Lords and Vampire: The Masquerade - Swansong) and the new partnership with Microsoft (which will see the launch of a range of controllers compatible with the new console) will make a positive contribution to sales growth in the Nacon-Gaming business unit.

BIGBEN AUDIO/TELCO

·The expected recovery in sales in the Bigben-Audio/Telco business unit will be supported by the introduction of innovative offers aimed at new channels and an acceleration of the internationalization of its distribution network.

Bigben will provide its sales and current operating income ⁽¹⁾ targets for the current financial year in the autumn.

The Group is already confirming the targets of its Bigben 2023 strategic plan with 350 M€ sales and a 13% COI rate ⁽¹⁾ for the 2022/23 financial year, with a focus on steadily improving the Current Operating Margin ^(1).

 ⁽¹⁾ Current Operating Margin = Current Operating Income rate = Current Operating Income as a percentage of sales.

Next publication:

Sales for 2^nd quarter of FY 2020/2021: 26 October 2020
Press release after close of the Paris stock exchange

Attachment

• PR_BBI_Sales_Q1 2020 2021_Final_Website_ENG