Focus Entertainment Announces a FY 2022/23 Historical High Revenues of €194.1M

• FY 2022/23 revenues +36.2% vs 2021/22 at €194.1M, at the higher end of the Group’s published range, and an all-time high.
• Q4 2022/23 revenues of €52.6M.
• Expected strong growth in operational margins.
• Continued strategic execution with the acquisition of UK based Dovetail Games Group and ambitious investments in games to fuel future organic growth.

PARIS--(BUSINESS WIRE)--Regulatory News:

FOCUS ENTERTAINMENT (FR0012419307 - ALFOC) (Paris:ALFOC) announces its unaudited revenues for the fourth quarter of 2022/23 (period ending March 31st, 2023).

Revenues for the 4^th quarter of 2022/23 (ended March 31^st, 2023) unaudited

In million euros Unaudited	Q4 2022/23	Q4 2021/22	Var.	FY 2022/23	FY 2021/22	Var.
Catalogue	40.8	11.2	x3.6	126.4	72.8	+73.7%
Back-catalogue	10.4	9.1	+14.3%	65.2	69.8	-6.6%
Other	1.4	-	-	2.5	-	-
Group revenues	52.6	20.3	x2.6	194.1	142.6	+36.2%

Q4 2022/23 revenues of Focus Entertainment amounted to €52.6 million, in comparison with €20.3 million for the same period 2021/22. This strong organic growth is fueled by the successes of titles released during the second half of the fiscal year.

Full year 2022/23 revenues reached a historical high of €194.1 million, at the higher end of the Group’s published range. FY 2022/23 revenue represents in total a growth of +36.2% compared to FY 2021/22 and is mostly driven by the performance of six major titles.

Four of these games have been released during the year and confirm the AA strategic positioning and the high-quality experience of Focus’ games, as well as the successful acquisition of Dotemu: Teenage Mutant Ninja Turtles: Shredder’s Revenge, A Plague Tale: Requiem and Evil West (a co-owned IP with Flying Wild Hog). Lastly, developed by Mundfish and released during the last quarter of the fiscal year, Atomic Heart has performed above the group’s initial expectations.

Two other games have also proven their long-lasting revenue contribution, thanks to additional sales generated by live content constantly offered to gamers: SnowRunner, released in April 2020 and Insurgency: Sandstorm, released back in December 2018.

“We are very pleased and proud that the strategy initiated in 2019 has borne fruit this year with ambitious games that have met their audience in an intense competitive environment” declares John Bert, Managing Director, “the Group was also able to reap the benefits of its external growth investments due to the success of Dotemu, which, thanks to renewed financial resources, had joined the group in September 2021."

For the full year, 86% of Group sales are generated via digital partners, with international business accounting for 95% of total Group revenues.

Expected improvement of gross margin and operational profitability while continuous investment to fuel future growth

New games’ successes will be translated into an improved gross margin and an increased operational profitability of Focus Entertainment: the Group expects to publish a stronger FY 2022/23 profitability compared to the one generated in FY 2021/22.

Focus Entertainment 2022/23 performance is the result of the continuous hard work of its teams and underpins the validity of its strategic positioning, based on quality franchises developed within balanced budgets and capable of generating long-term revenues.

As a result, Focus Entertainment is very proud to be ranked 4^th position in the Metacritic 2023 Annual Video Game Publisher Rankings (unveiled on March 23^rd, 2023) behind Sony, Paradox Interactive, and Activision Blizzard.

These achievements are accompanied by continued investments in games: in 2022/23, the Group has significantly invested and will continue in the future its investments, materializing its acceleration to deliver an ambitious line-up for the coming years.

2023/24 outlook

Acquisition of Dovetail Games Group

Focus Entertainment today announced the acquisition of 100% of Railsimulator.com, the parent company of Dovetail Games’ group (DTG), a best-in-class gaming company in simulation genre, alongside senior management. For years, the UK-based studio has adopted a robust business model based on synergies between full game releases and a strong live service content strategy providing recurring revenue.

The integration of this award-winning developer and publisher (£15 million of revenues expected for the FY ended March 31^st 2023) is a step forward in the strategy of Focus Entertainment and it is expected to be somewhat accretive in terms of percentage margin standpoint.

Confidence in the 2023/24 roadmap execution

Focus Entertainment is fully committed and confident in executing its line-up for the FY 2023/24. The plan is to deliver on important launches, firstly in June with Aliens: Dark Descent developed by Tindalos then Atlas Fallen (Deck 13 studio) planned August 10^th, 2023 and later during the second half of the fiscal year with major titles like, Banishers: Ghost of New Eden, a new franchise co-owned with Don’t Nod or Warhammer 40.000: Space Marine 2.

Focus Entertainment Financial Calendar

Publication	Date
2022/23 – FY Results	June 15, 2023
2023/24 – Q1 Revenues	July 20, 2023
Annual General Shareholders Meeting	September 12, 2023

About Focus Entertainment

FOCUS ENTERTAINMENT is one of Europe’s leading video game publishers and developers. Its vocation is to support leading French and international studios in the development, production monitoring, marketing, sales and financing of their projects. As a publisher of strong brands such as The Surge, Vampyr, Evil West, A Plague Tale and Atomic Heart, the Group generated revenues of €194.1 million in 2022/23. FOCUS ENTERTAINMENT generates 95% of its sales internationally. For additional information, visit www.focusent.com

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