FOCUS HOME INTERACTIVE (EPA:ALFOC) Focus Home Interactive : Annual earnings for 2017/2018 (FY lasting 15 months).

Transparency directive : regulatory news

05/07/2018 17:40

Press release Paris, July 5, 2018

                             FOCUS HOME INTERACTIVE

              Annual earnings for 2017/2018 (FY lasting 15 months)

             Excellent results despite delays with two major games

                 Nomination of a new member to Management Team

French video games publisher, FOCUS HOME INTERACTIVE (FR0012419307 ALFOC), has
reported its annual earnings for its fiscal year 2017-2018. Note that the
Group's financial year exceptionally lasted 15 months, the end of its fiscal
year having been moved to 31 March to be more in line with the seasonal nature
of the business.

The Management Board met on July 3, 2018 to approve the financial statements
for the financial year ended March 31, 2018.

        Profit & Loss in EURm        31/03/2018   31/12/2016     31/03/2018
                                         (*)                        (**)
        Consolidated financial       (15 months)  (12 months)    (12 months)
           statements under
             French GAAP                            Audited

Sales                                    89.9           75.6           75.9

Studio costs                            -49.7          -40.8          -41.1
Manufacturing and ancillary costs         -13          -10.4          -10.8

Gross Margin                             27.2           24.4             24
% of revenue                            30.2%          32.3%          31.6%

Personnel expenses                       -8.7             -7           -7.2
Other operating costs                      -9           -8.2           -7.2

Operating income                          9.5            9.2            9.6
% of revenue                            10.6%          12.1%          12.6%

Group net income                          6.5            5.9
% of revenue                             7.2%           7.8%

(*) The audit procedures have been performed. The reports will be issued after
finalization of the procedures required for the purposes of the publication of
the annual financial report
(**) The Group changed its fiscal year and presented its closed accounts to the
March 31, 2018 over a 15 months period, it is presented a comparable of 12
months (period from 1/4/2017 to 31/3/2018).

Another successful year, despite delays with two major games

Total revenue for the 2017-2018 financial year (15 months) came to EUR89.9m.
Note that revenues for FY 2016 (12 months) totalled EUR75.6m. This fine
performance was notably driven by the commercial success of MudRunner, which
was released at the end of 2017 and of which nearly one million copies have
been sold. In the space of a few months, MudRunner has therefore become a
flagship title for FOCUS HOME INTERACTIVE. This success once again testifies to
the Group's expertise in identifying high-potential licences and promoting
original content overseas and across all platforms.

Also worth noting was the fine performance from The Surge game. This Deck 13
title, which was launched in May 2017, got a boost from new content. The game
has been a major commercial hit, with more than half a million copies sold
worldwide. Meanwhile, the development of The Surge 2 was announced in February
at What's Next.

In addition, the major contribution to 15-month 2017/18 sales made by Farming
Simulator 17 Platinum Edition and the Nintendo Switch version, which came out
late in 2017, extending the brand's reach ahead of a new opus due for release
late this year.

For the full 15-month fiscal year, the back catalog of strong titles and
successful licenses (Blood Bowl , Divinity Original Sin, etc.), contributed 42%
of total sales. As Focus moves upmarket, 89% of sales are now generated in
international markets and digital revenue accounts for 64% of the total.

Operating profit increases despite recent reinforcement of the organisation

Operating expenses came to EUR80.4m in FY 2017/2018. These take into account
full-year contributions from recruitments made in 2016 to accompany the Group's
drive to move its games upmarket. Operating profit worked out to EUR9.5m
(10.6%).

Net profit came to EUR6.5m for FY 2017/2018 (15 months), compared with EUR5.9m
in FY 2016.

Management will be proposing to pay a dividend of EUR0.57 per share at the AGM
on September
27, 2018.

Solid financial structure

As at March 31, 2018, Focus had a total of EUR43.2m in shareholders' equity.
This figure takes into account the EUR13.3m capital increase (gross amount)
conducted in December 2017. The proceeds of the latter are to be used to help
the Company shore up its games catalogue by developing new partnerships with
front-ranking European and global studios, with a view to undertaking
increasingly ambitious projects. The Group's balance sheet is in solid shape,
with a net cash position of EUR7.8m, versus EUR10.2m.

2018-2019: a high-potential games catalogue

Calendar year 2018 kicked off with the fourth edition of the Group's annual
trade show, What's Next, which was held in Paris on February 1 and 2 this year.
The Group took advantage of this event, which has been gaining in exposure, to
showcase all of its ambitious catalogue of upcoming games for the French and
international media, with exclusive game presentations by all the partner
studios of FOCUS HOME INTERACTIVE. 16 games, 10 studios, and nearly 300
journalists and international partners attended the What's Next 2018 event.

The first big release of the current financial year came on June 5, with
role-playing game Vampyr (DontNod). With the exception of Farming Simulator,
FOCUS HOME INTERACTIVE has never before invested so much in a game's
development budget. Vampyr, which had been eagerly anticipated by gamers and
the trade press across the world, was a firm hit, both in terms of sales and
reviews. Indeed, just a week after it was launched, Vampyr was the best-
selling game in France, the UK, Germany and a host of other countries. More
than 450,000 copies of the game have already been sold in the month since its
release.

The Group also took part in the annual international video games tradeshow E3,
which was held in Los Angeles in June this year. The 2018 edition was one of
the busiest ever for the Group, which met with more than 400 journalists at the
event. The interest shown in the games currently in development, including the
much-awaited A Plague Tale: Innocence, by Asobo Studios, is evidence of the
reputation being gained by the Parisian publisher's brand on the international
stage.

Insurgency: Sandstorm (New World Interactive) comes out this summer. The title
has enormous sales potential, founded on its community of 5 million players
loyal to this realistic and competitive game.

MudRunner is to get an extension for the US market later in the year, dubbed
"American Wilds", to pull in the ever-growing community of American gamers.

Fear The Wolves, a post-apocalyptic Battle Royale by Vostok Games - a team
consisting of the creators of the renowned S.T.A.L.K.E.R. license - will offer
players a more grown-up experience of the Battle Royale format, set in
Tchernobyl.

Other scheduled releases include BattleFleet Gothic: Armada 2 (Tindalos
Interactive), and the much-anticipated Call of Cthulhu.

Finally, Farming Simulator 19 will provide all of its fans and sim game
enthusiasts worldwide with the world's best-ever "farming" experience, as the
richest, most comprehensive game ever to be developed by the Giants team.

The management board is pleased to announce the nomination by the Supervisory
board its new member Thomas Barrau. With over 9 years of experience at Focus
Home Interactive as Marketing Director ,Thomas Barrau will be a valuable new
member to the board.

About Focus Home Interactive
FOCUS HOME INTERACTIVE is France's third-largest publisher of video games. Its
mission is to support development studioes in overseeing the production,
marketing, sales and financing of their projects. The publisher of several
successful original titles, such as Blood Bowl, Tour de France, Wargame and
Farming Simulator, the Group generated revenue of EUR75.6m in 2016, an increase
of 9.3%. FOCUS HOME INTERACTIVE generates more than 85% of its sales
internationally.

Upcoming events

Q1 Sales 2018-2019
July 26, 2018

Q2 Sales 2018-2019
October 25 , 2018

1st Semester Results and Q3 Sales 2018-2019
January 24 2019

All financial information pertaining to FOCUS HOME INTERACTIVE can be found on
www.focus-home.com

Financial communication contacts
FOCUS HOME INTERACTIVE
Deborah Bellangé
Tel : + 33 (0) 1 55 26 85 00
mail : dirgen@focus-home.com

Investor relations - ACTIFIN
Benjamin LEHARI
Tél : + 33 (0) 1 56 88 11 25
mail : blehari@actifin.fr

Press Relations - ACTIFIN
Jennifer JULLIA
Tél : + 33 (0) 1 56 88 11 19
mail : jjullia@actifin.fr

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15/05/2024 23:34

FOCUS HOME INTERACTIVE (EPA:ALFOC) Focus Home Interactive : Annual earnings for 2017/2018 (FY lasting 15 months).

Transparency directive : regulatory news

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