PRESS RELEASE: BIGBEN INTERACTIVE: SALES IN Q4 2018/19: 59.2 M€ UP BY 7.1%

                                                                                    Press release

Lesquin, 23 April 2019, 18:00

Sales in Q4 2018/19: 59.2 M€ up by 7.1%

2018/19 Annual sales stable at 245.5 M€

Confirmation of target for current operating profit rate

between 8.7% and 9.0%

XX
⁽¹⁾ Non audited data  

Sales increased by 7.1% in 4^th quarter

In the fourth quarter of fiscal year 2018/19 (January 1 to March 31, 2019), sales resumed a markedly upward trend (+ 7.1% to 59.2 M €) after two mixed quarters impacted by the decline of the mobile and audio sales.

Over the period, the release of the REVOLUTION Unlimited Pro Controller and Asymmetric Wireless joysticks for the PS4™ format enabled the growth of Gaming Accessories sales by 64.8% to 17.9 M€. Sales for the "Games" segment were down by 26.8% to 8.5 M € in Q4 due to the lack of releases of new major games over the period. However digital sales which accounted for 78% of Publishing turnover were up thanks to the excellent sales recorded by the back catalogue.

The Mobile segment (+ 3.1% at 27.3 M €) was well oriented with the first benefits from the distribution agreement with Orange Spain and the success of the Force® ranges (Force Glass®, Force Case® and Force Power®).

The decline in Audio sales was reduced to 12.5% despite a fast market shift towards connected audio. Bigben anticipated this trend and several developments of innovative products are currently in progress in order to launch new connected devices in 2019.

A FY 2018/2019 year within expectations

In line with its forecasts, Bigben achieved sales of 245.5 M€ for its financial year 2018/19 (closed at 31 March 2019) i.e. a turnover almost identical to that of the previous year.

The activity of the three businesses of the Group was as follows:

GAMING

Gaming sales reached 105.5 M€ in FY 2018/19, a strong increase of 20.9% when compared to FY 2017/18 thanks to the commercial momentum of Publishing and the good performance of the Accessories range.

• Accessories: sales of 56.4 M€ showed a 6.6% increase supported by the success of the PlayStation® 4 licensed products developed by the Group.

• Games: the segment generated annual sales of 49.1 M€ up by 42.9%. This growth was driven by digital sales which rose by 121.1% compared to last year and represented 49% of the total Publishing sales in FY 2018/19 (against 36% in FY 2017/18).

MOBILE

Mobile sales recorded a 9.3 % contraction to 109.8 M€ in FY 2018/2019. This business was hallmarked by a relative decline in volume of smartphone sales, due to the trend with consumers to hold on to their smartphones for longer periods of time. However the success of the Force Glass® protection shields, the rise of the Force Case® protection shells and the successful launch of the Force Power® high-performance chargers and cables range confirmed the momentum of premium accessory sales to consumers eager to protect their ever more expensive smartphones.

AUDIO

Audio sales were down by 18.7% to 30.2 M € mainly impacted by the shift in the market and a strong base effect resulting from the launch of new product lines last year.

Confirmation of the 2018/19 Current Operating Profit rate ⁽²⁾ target within 8.7% to 9% of sales

Notwithstanding stable sales in FY 2018/19, Bigben confirms its target to improve its current operating margin within a 8.7 to 9.0% range on sales against 6.7% the previous year.

 Outlook 2019/2020

The Group anticipates at the beginning of FY 2019/20 an acceleration of the growth supported by the Gaming business which will see the release of high potential games such as Warhammer: Chaosbane (developed by Eko Software), The Sinking City, Tennis World Tour Roland Garros Edition as well as Pro Cycling Manager 2019 and Tour de France 2019 (developed by Cyanide). Digital sales will continue to rise and should exceed retail sales. Gaming will also benefit from on-going sales of the last two REVOLUTION Unlimited Pro Controller and Asymmetric Wireless joysticks for the PS4™ format. The Mobile and Audio businesses should continue their recovery with the commercialization of new products under their own brands.

Banking on the good orientation of its business and profitability, the Group confirms the targets set out in its "BIGBEN 2020” plan with sales in excess of 350 M€ and a Current Operating Profit rate ⁽²⁾ of 12% for FY 2021/2022, focusing on a steady improvement of the Current Operating Margin ⁽²⁾.

The projections for FY 2019/2020 will be disclosed in the 27 May press release for the FY 2018/2019 year-end results and commented during the presentation of annual results to take place in Paris on the following day.

⁽²⁾ Current Operating Profit rate = Current Operating Profit result as a proportion of Sales = Current Operating Margin

Upcoming publication:

• Annual results 2018/19 : Monday 27 May 2019

   Press release after close of the stock market

Attachment

• Bigben Interactive Sales_Q4_2018_19