Dontnod Entertainment: 2020 Business Review: Ramp-Up Of Self-publishing Projects And Solid Performance From Back Catalog

  • Capitalized production multiplied by 2.5
  • Strong growth in back catalog revenue: royalties up 83%
  • Acceleration of self-publishing strategy: operating revenues1 up 31% to €23.6 million

March 31, 2021. DONTNOD Entertainment, an independent French studio that creates and develops video games, today publishes its 2020 business review.

Audited figures - €m 2020 2019 Change
Revenues 13.5 13.9 -3%
- incl. publisher fees 9.7 11.9 -18%
- incl. royalties 3.8 2.1 +83%
Capitalized production 10.1 4.1 +147%
Operating revenues [1] 23.6 18.0 +31%

Robust growth in operating revenues

For the 2020 financial year, DONTNOD Entertainment posted operating revenues of €23.6 million, up 31% from €18.0 million in 2019. This performance was driven by:

  • capitalized production multiplying by 2.5 to €10.1 million, including the end of TWIN MIRRORTM development and the ramp-up of Project 7, for which the studio holds the intellectual property rights, and Project 8, a new co-production in partnership with FOCUS Home Interactive;
  • royalties up 83% to €3.8 million, reflecting the release of TWIN MIRRORTM and strong momentum from the back catalog generated by brisk sales of Life is StrangeTM and VAMPYRTM which, three years after its launch, has benefited from release on PS+ and numerous promotions during the year.

Meanwhile, in line with the Group's strategy aimed at capturing more value from original creations by self-publishing more games, the studio recorded a fall in publisher fees, down 18% to €9.7 million in 2020.

Therefore, in view of the operating revenues recorded for the period, a solid improvement in 2020 operating EBITDA[2] is forecast.

Ramp-up of the strategy to develop new intellectual property through self-publishing

Post-closing, DONTNOD bolstered its equity and cash base by €50 million through a capital increase subscribed by institutional investors and Tencent Holdings Limited (€30 million investment).

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