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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Atari Sa | LSE:0KUV | London | Ordinary Share | FR0010478248 | ATARI ORD SHS |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.56 | 3,057 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Games,toys,chld Veh,ex Dolls | 10.1M | -9.5M | -0.0225 | -4.89 | 46.38M |
FY2023 ANNUAL RESULTSCONTINUED TRANSFORMATION AND IMPLEMENTATION OF STRATEGIC PLAN
PARIS, FRANCE (August 1st, 2023 - 8.00 am CET) - Atari® — one of the world's most iconic consumer brands and interactive entertainment producers — today announced the Group’s consolidated results for the fiscal year ended March 31, 2023, approved by the Board of Directors during its meeting held on July 31, 2023. Consolidated accounts have been audited by the statutory auditors.
FY2023 Operational highlights
● Acquisition of Berzerk and Frenzy IPs
Post-closing events
FY2023 financial performance summary
Wade Rosen, Chairman and Chief Executive Officer commented: “The financial performance of the Group is reflective of Atari’s continuing transformational efforts to refocus all four lines of Atari’s business on projects critical to the brand’s DNA. With this strategic refocus, complemented by acquisitions completed during the year, we continue to put in place the necessary foundation for long term success.”
HIGHLIGHTS OF THE PERIOD
During the year, the Company focused its resources on the transformation of its operations and organization while laying the foundation for a new strategic orientation across each of its four lines of business:
BREAKDOWN OF REVENUES BY LINES OF BUSINESS
(M€) | FY 23 | FY 22 |
Games | 7.3 | 5.7 |
Hardware | 0.7 | 3.1 |
Licensing | 1.3 | 1.3 |
Web3 | 0.8 | 4.9 |
Total Revenue | 10.1 | 15.0 |
Revenues - As of March 31, 2023, Atari recorded consolidated revenues of €10.1M, compared with €14.9M in the previous year. The decrease, -32% at current exchange rates and -39% at constant exchange rates, is reflective of Atari’s strategic orientations implemented by the Group over the period, across all its lines of business and one-off revenue in FY22 that was not replicated in FY23.
CONSOLIDATED INCOME STATEMENT SUMMARY
(M€) | FY23 | FY 22 |
REVENUE | 10.1 | 14.9 |
GROSS MARGIN | 7.9 | 11.5 |
CURRENT OPERATING INCOME (LOSS) | (6.1) | (2.3) |
OPERATING INCOME (LOSS) | (8.5) | (23.0) |
NET INCOME (LOSS) FOR THE YEAR | (9.5) | (23.8) |
Gross Margin – Gross margin improved from 77% to 79% of revenues. This is mainly due to the decrease in Hardware COGS resulting from the suspension of existing VCS manufacturing contracts in light of the revision of Atari’s hardware strategy.
Research and Development Expenses – Research and development expenses totalled €4.4M (compared to €7.5M in previous year), demonstrating the Group’s focus on new premium games development and lower expenses related to hardware projects compared to previous period.
Marketing and Selling Expenses – Marketing and selling expenses totalled €0.7M, compared with €1.2M in the previous year. This significant reduction is in line with Atari's efforts to improve profitability of its Games activity and the reduction of VCS marketing.
General and Administrative Expenses – General and administrative expenses represent €8.5M, compared with €5.1 M the previous year mainly due to the increase in legal and personnel costs incurred in context of the transformation strategy and new team organization.
Other Income and Expenses – Other income and expenses came at -€2.5M, compared to -€20.7M which included mainly one-offs, non cash items recorded in context of the Group’s strategic review of its operations. For FY23, other income include, notably, positive effect from reversal of provisions for litigations for €1.3M. Other Expenses include notably €1.9M impairment on VCS inventories and spare parts, €1.3M impairment on games, €0.6M impairment and losses on financial and certain digital assets.
Operating Income – Operating income for the year ended March 31, 2023 came to -€8.5M, compared with -€23.0M for the year ended March 31, 2022.
Net Income – Consolidated net income for the year came to -€9.5M, compared with -€23.8M in previous year.
BALANCE SHEET SUMMARY
ASSETS (M€) | FY23 | FY 22 |
Non-current assets | 18.1 | 18.9 |
Current assets | 7.1 | 7.0 |
Total assets | 25.2 | 26.0 |
EQUITY & LIABILITIES (M€) | FY23 | FY 22 |
Total equity | 7.8 | 4.4 |
Non-current liabilities | 9.5 | 8.0 |
Current liabilities | 7.9 | 13.6 |
Total equity and liabilities | 25.2 | 26.0 |
Non-current AssetsIntangible assets increased from €6.1M to €7.7M. The increase is due to:
Current Assets remain stable at €7.1M over the period. The evolution is mainly due to the €1.7M decrease in inventories resulting mainly from hardware inventory depreciation, increase in trade receivables and €1.0M increase in cash and cash equivalents, in connection with the capital increase of April 2022 and shareholder loans granted throughout the year.
Non-current Liabilities increased to €9.5M over the period, notably due to the evolution of shareholders loans over the period (redemption by debt set-off in the capital increase, for a total amount of €2.9M, and €2.5M new shareholder loans granted throughout the year) and the reversal of a provision for litigation for €0.9M.
Current Liabilities decreased to €7.9M, notably thanks to the €5.4M decrease in trade payables resulting from the clean-up of certain working capital items with the proceeds of the capital increase. Other current liabilities represent €4.6M, and include, notably, €2.4M in deferred revenues from ATRI Tokens previously sold or awarded, and staff-related liabilities for €2.1M.
Shareholders’ equity increased from €4.4M to €7.8M and was mainly impacted by the proceeds of the capital increase concluded in April 2022 for a total amount of €12.5M and the allocation of a portion of costs of the capital increase on issuance premium for an amount of €0.6M.
Net debt - At March 31, 2023, the Group had a net debt position of €6.2M, compared to a net debt of €4.6M in the previous year. Net debt position does not take into account the proceeds from the €30M convertible bond issuance completed on June 5, 2023 (€12.9M in cash), nor shareholder loans that have been concluded between Irata and Atari after year end close. At the date of this Document, all shareholder loans previously granted by IRATA to Atari (€16.3M in total) have been redeemed in full by way of debt set-off.
(M€) | FY23 | FY 22 |
Cash and cash equivalents | 1.7 | 0.6 |
Non-current financial liabilities | (7.7) | (5.0) |
Current financial liabilities | (0.2) | (0.1) |
Net debt | (6.2) | (4.6) |
Cash flow statement
(M€) | FY 23 | FY 22 |
NET CASH USED IN OPERATING ACTIVITIES | (8.3) | (5.8) |
NET CASH USED IN INVESTING ACTIVITIES | (5.6) | (4.4) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 14.7 | 7.5 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1.0 | (1.9) |
(M€) | FY 23 | FY 22 |
Net opening cash balance | 0.6 | 2.5 |
Net closing cash balance | 1.7 | 0.6 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1.0 | (1.9) |
Net change in cash for the period was positive at €1.0M, comprising -€8.3M cash generated by operating activities due to lower activity and €4.8M investments related to R&D costs for new game development. Financing activities generated €14.7M, including €11.9M from capital increase and €2.7M from shareholders loans granted throughout the year. End of year cash position of €1.7M, excludes proceeds from i) shareholder loan granted by Irata of €5.0M in April 2023, ii) $4.5M loan from Irata for the purpose of Nightdive acquisition financing and iii) cash proceeds from the convertible bonds.
STRATEGY & OUTLOOK
After a transition year which saw the Group successfully put in place the drivers for growth, profitability and cash generation, Atari is focusing on the execution of its strategic roadmap to monetize its IP portfolio across all four lines of business:
Atari will continue to selectively consider potential acquisitions and/or minority investments in companies offering value-added solutions for the Group, and acquisitions of retro games that further compliment its portfolio of intellectual property.
Going Concern
As at March 31, 2023, the Company reported a net loss of €9.5M (compared with €23.8M in previous year). Shareholders’ equity was €7.8M, compared to €4.4M in previous year. Net debt stood at €(6.2)M compared to net debt position of €4.6M in previous year, and includes €1.7M of cash and €7.9M of financial debt.
The Company conducted a review of its liquidity risk based on projections on all of its four activities: Gaming, Hardware, Licensing and Web3, excluding any external financing. Under this assumption, the Group considers that it can meet its future obligations and that it holds sufficient liquidity to continue its activities over the next 12 months. This consideration excludes potential future inorganic growth opportunities.
The Group benefits from the flexibility provided by the proceeds raised with the convertible bonds issuance completed in June 2023 for an amount of (€30 M which comprised €16.3 M subscription by debt set-off and €12.9M in cash).
Token Update
As previously disclosed, Atari terminated the license with the former joint venture that created and distributed the ATRI Token. Atari also disclosed plans to provide a claim for a new token for certain ATRI holders. As stated in subsequent disclosures on Atari.com, given the changing regulatory and commercial landscapes, as well as Atari’s strategic priorities, Atari is unable to create a new token. Instead, Atari has confirmed that ATRI holders are free to continue to trade their ATRI tokens and Atari will provide a claim to each eligible ATRI wallet holder identified in the snapshot on April 18, 2022 for a share of a pool of a third-party token currently held by Atari. Atari will focus its resources on growing its activities across Games, Licensing and Hardware lines of business, and in Web3, with the development of the Atari Club and continued collaborations and partnerships.
ANNUAL GENERAL MEETING
The Shareholders’ Annual Meeting is scheduled to be held on September 29, 2023 and will be convened shortly.
AVAILABILITY OF AUDITED ANNUAL AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE 2022-2023 FINANCIAL YEAR
Annual and consolidated financial statements for the 2022-23 financial year, ending March 31, 2023 are available on the Company's website.
About ATARI
Atari is an interactive entertainment company and an iconic gaming industry brand that transcends generations and audiences. The company is globally recognized for its multi-platform, interactive entertainment and licensed products. Atari owns and/or manages a portfolio of more than 200 unique games and franchises, including world-renowned brands like Asteroids®, Centipede®, Missile Command®, Pong®, and RollerCoaster Tycoon®. Atari has offices in New York and Paris. Visit us online at www.Atari.com.
Atari shares are listed in France on Euronext Growth Paris (ISIN Code FR0010478248, Ticker ALATA) and OTC Pink Current (Ticker PONGF).
©2022 Atari Interactive, Inc. Atari wordmark and logo are trademarks owned by Atari Interactive, Inc.
Contacts
Atari - Investor RelationsTel + 33 1 83 64 61 57 - investisseur@atari-sa.com | www.atari.com/news/
Calyptus – Marie Calleux Tel + 33 1 53 65 68 68 – atari@calyptus.net
Listing Sponsor- EurolandTel +33 1 44 70 20 84Julia Bridger - jbridger@elcorp.com
APPENDIX
Consolidated P&L
(M€) | FY23 | FY 22 |
Revenue | 10.1 | 14.9 |
Cost of goods sold | (2.2) | (3.4) |
GROSS MARGIN | 7.9 | 11.5 |
Research and development expenses | (4.4) | (7.5) |
Marketing and selling expenses | (0.7) | (1.2) |
General and administrative expenses | (8.5) | (5.1) |
Other operating income (expense) | (0.4) | - |
CURRENT OPERATING INCOME (LOSS) | (6.1) | (2.3) |
Other income (expense) | (2.5) | (20.7) |
OPERATING INCOME (LOSS) | (8.5) | (23.0) |
Cost of debt | (0.2) | (0.2) |
Other financial income (expense) | 0.1 | (1.7) |
Share of net operational profit of equity affiliates | - | - |
Income tax | (0.9) | (0.1) |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (9.5) | (25.0) |
Net income (loss) from discontinued operations | 0.1 | 1.1 |
NET INCOME (LOSS) FOR THE YEAR | (9.5) | (23.8) |
Group share | (9.5) | (23.8) |
Balance Sheet
ASSETS (M€) | FY23 | FY 22 |
Intangible assets | 7.7 | 6.1 |
Property, plant and equipment | 0.0 | 0.0 |
Rights of use relating to leases | 1.3 | 1.6 |
Non-current financial assets | 7.9 | 9.2 |
Deferred tax assets | 1.2 | 2.0 |
Non-current assets | 18.1 | 18.9 |
Inventories | 0.5 | 2.1 |
Trade receivables | 3.1 | 2.4 |
Other current assets | 1.8 | 1.7 |
Cash and cash equivalents | 1.7 | 0.6 |
Assets held for sale | 0.0 | 0.1 |
Current assets | 7.1 | 7.0 |
Total assets | 25.2 | 26.0 |
EQUITY & LIABILITIES (M€) | FY23 | FY 22 |
Capital stock | 3.8 | 3.1 |
Share premium | 32.7 | 21.4 |
Consolidated reserves | (19.2) | 3.7 |
Net income (loss) Group share | (9.5) | (23.8) |
Total equity | 7.8 | 4.4 |
Provisions for non-current contingencies and losses | - | 0.9 |
Non-current financial liabilities | 7.7 | 5.0 |
Long term lease liabilities | 1.0 | 1.3 |
Other non-current liabilities | 0.7 | 0.7 |
Non-current liabilities | 9.5 | 8.0 |
Provisions for current contingencies and losses | - | 0.4 |
Current financial liabilities | 0.2 | 0.1 |
Short term lease liabilities | 0.4 | 0.4 |
Trade payables | 2.7 | 8.2 |
Other current liabilities | 4.6 | 4.5 |
Liabilities held for sale | 0.0 | 0.1 |
Current liabilities | 7.9 | 13.6 |
Total equity and liabilities | 25.2 | 26.0 |
Cash-flow statement
(M€) | FY 23 | FY 22 |
Net income (loss) for the year | (9.5) | (23.8) |
Non cash expenses and revenue | ||
Charges (reversals) for depreciation, amortization and provisions for non current assets | 5.4 | 14.7 |
Cost of (revenue from) stock options and related benefits | 0.8 | 0.8 |
Losses (gains) on disposals | - | - |
Other non cash items | 0.3 | (0.2) |
CASH FLOW BEFORE NET COST OF DEBT AND TAXES | (3.0) | (8.5) |
Income taxes paid | - | - |
Changes in working capital | ||
Inventories | 1.7 | (4.4) |
Trade receivables | (0.1) | 2.4 |
Trade payables | (4.5) | 0.6 |
Other current & non current assets and liabilities | (2.5) | 4.2 |
NET CASH USED IN OPERATING ACTIVITIES | (8.3) | (5.7) |
Purchases of/additions to | ||
Intangible assets | (5.8) | (4.3) |
Property, Plant & equipment | (0.0) | - |
Non current financials assets | - | (0.1) |
Disposals/repayments of | ||
Intangible assets | 0.2 | - |
Property, Plant & equipment | - | - |
Non current financials assets | - | - |
NET CASH USED IN INVESTING ACTIVITIES | (5.6) | (4.4) |
Net funds raised from | ||
Share issues | 12.0 | 2.4 |
Loans | 2.7 | 5.0 |
Net funds disbursed for | ||
Interest and other financial charges | 0.0 | - |
Debt repayment | - | 0.1 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 14.7 | 7.5 |
Impact of changes in exchange rates | 0.2 | 0.7 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1.0 | (1.9) |
Cash-flow statement (cont’d)
(M€) | FY 23 | FY 22 |
Net opening cash balance | 0.6 | 2.5 |
Net closing cash balance | 1.7 | 0.6 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1.0 | (1.9) |
Net closing cash balance | ||
Cash and cash equivalents | 1.7 | 0.6 |
Bank overdrafts (including current financial debts) | - | - |
Summary of Digital Assets holdings (as of March 31, 2023)
Cryptocurrencies
Nature | Units | Value (€K) |
ETHerum | 29 | 48 |
WETH | 7 | 12 |
SAND | 503,052 | 267 |
USDC | 11,000 | 10 |
CHAIN Token | 430,000 | 10 |
LYM Token | 670,819 | 2 |
Other digital assets
Units | Value (€K) | |
Sandbox Lands | 972 parcels | - |
ATRI Tokens | 259 million | 716 |
Atari does not intend to sell ATRI Token or parcels of land in The Sandbox within the next twelve months period starting from December 16, 2022.
DISCLAIMER
This press release contains certain non-factual elements, including but not restricted to certain statements concerning its future results and other future events. These statements are based on the current vision and assumptions of Atari’s leadership team. They include various known and unknown uncertainties and risks that could result in material differences in relation to the expected results, profitability and events. In addition, Atari, its shareholders and its respective affiliates, directors, executives, advisors and employees have not checked the accuracy of and make no representations or warranties concerning the statistical or forward-looking information contained in this press release that is taken from or derived from third-party sources or industry publications. If applicable, these statistical data and forward-looking information are used in this press release exclusively for information.
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