The latest financial results for Bigben, Nacon and Focus Home are good. But which action to favor?
The health crisis has relatively spared video game publishers.
In the first half of its financial year which will end on March 31, sales of Focus Home jumped 30% to 103.6 million euros. Its operating margin increased from 17% to 18% of turnover.
Performances driven by Nacon
The re-containment and other health restrictions, however, reduced its sales by 3% in the third quarter, to 37.8 million.
Likewise, the turnover of Bigben rose only 2.3% between October and December, to 87.3 million euros, reducing the growth rate to 5% in the first nine months of the fiscal year.
These performances are once again due to its subsidiary Nacon, specialized in gaming (games and accessories): its sales grew 20.3% in the third quarter, to 48.6 million, while the audio and telecoms business, housed at Bigben, fell 13.9% to 38.7 millions.
Despite new fears about the pandemic and the postponement of three game launches at Focus Home and one game at Bigben-Nacon, leaders are optimistic.
For the second time, Focus Home has raised its revenue forecast for 2020/2021 to a range of 150 to 160 million euros (against 130 to 150 million previously), and Bigben confirms targeting between 270 and 290 million euros. Billings.
Analysts expect net earnings per share (NBA) up 33% for the 2021/2022 fiscal year at Focus Home, 22% at Bigben and 13% at Nacon.
However, the first two are valued 15 times the expected BNA in March 2022, against a ratio of 27.8 times for the third.
As such, Focus Home and Bigben seem to us to have more potential on the stock market in the short term.
Buy Bigben share [BIG]. Objective: 25 €.
Buy the Focus Home share [ALFOC]. Objective: 65 €.
Sell the Nacon share [NACON]. Objective: 8 €.
Stock profile: speculative.