Bigben Interactive

Earnings Release • Jan 23, 2017

Press release

23 January 2017, 06:00 pm

3 RD QUARTER SALES OF FY 2016/17: 71.9 M€

STRONG GROWTH OF ACTIVITY EXPECTED IN 4 TH QUARTER CONFIRMATION OF ANNUAL SALES AND CURRENT OPERATING PROFIT PROSPECTS

IFRS – M€ Sales	2016/17	2015/16	Change
1 st Quarter	38.0	34.7	+ 9.5%
2 nd Quarter	46.9	53.9	- 13.0%
rd 3 Quarter Of which : Gaming	71.9	74.4	- 3.4%
Mobile	24.8	25.8	- 4.1%
Audio	32.0	31.8	+ 0.5%
	15.1	16.8	- 9.7%
Cumulative 9 months (31/12/2016)	156.8	163.0	- 3.8%
Of which : Gaming	46.4	53.0	- 12.5%
Mobile	82.5	79.6	+ 3.6%
Audio	27.9	30.4 XX	- 8.2%

(1) Non audited data

Further high comparison basis in 3rd quarter 2016/17

Bigben achieved a turnover of € 71.9 million, down by 3.4% for the 3 rd quarter of FY 2016/2017 (October to December 2016). This trend, in line with announced forecast, results from a high comparison basis in both Publishing and Audio business segments, which already impacted the second quarter.

GAMING

• As previously announced, the Gaming business segment showed sales down to 24.8 M€ (- 4.1%) in the 3 rd quarter of FY 2016/17 when compared to the 3 rd quarter of FY 2015/16.
• o Publishing: Further to the 2 nd quarter, activity in Publishing for the 3rd quarter of FY 2016/17 is to be compared with a very dynamic 3 rd quarter of FY 2015/16, supported by the major success of the WRC5 title compatible on « old » and « new generation » hardware. The distribution of the WRC6 sequel, only compatible with new generation hardware, follows the development of the installed base. However the releases of Handball 17 and The Voice games as well as the launch of Sherlock Holmes,The Devil's Daughter in both America and Asia allowed to soften the impact of this unfavourable comparison basis. Quarterly sales for this business segment amounted to 7.2 M€.
• o Accessories: Sales were up by 8.7% and reached 13.2 M€. This achievement was pulled by the first deliveries (30 000 units in December 2016) of the new REVOLUTION Pro Controller under PlayStation®4 license by SONY, by the gradual increase in sales of Plantronics headsets and by the growing success of the Nacon branded PC accessories.
• o Distribution: Sales in this sideline business amounted to 4.4 M€ thanks to the distribution of the Final Fantasy XV game on behalf of Square Enix.

MOBILE

The Mobile business achieved 32.0 M€ sales in the 3rd quarter of FY 2016/17 i.e. a virtually stable turnover (+0.5%) when compared to the same period of previous financial year. The further success in France and now abroad of Force GlassTM protection screens and the growing sales of new connected devices such as the Bigben recreational drone offset the withdrawal of accessories dedicated to Samsung Note 7.

AUDIO

The sales drop of Audio products to 15.1 M€, down by 9.7% when compared to an especially thriving market of sound towers in 2015, conceals the growing success of Thomson licensed products (+49.2%) and the resilience of Bigben innovative products faced with a strong competition.

rd quarter 3	rd quarter 3	Change
		- 6.9%
		+ 1.6%
		- 23.7%
		+ 60.3%
71.9	74.4	- 3.4%
	2016/2017 52.3 6.4 5.4 7.8	2015/2016 56.2 6.3 7.0 4.9

Breakdown of activities by area, combining domestic and export sales from these areas

Outlook

Strong sales growth expected in 4 th quarter

Bigben anticipates a strong sales growth in the 4 th quarter of FY 2016/17 supported by the Gaming activity.

The Accessories business segment will benefit from the growing sales of the REVOLUTION Pro Controller with over 100,000 units delivered before end of March 2017. This accessory of strategic importance for the Group enjoyed a strong interest from social networks and received particularly favourable reviews as well as excellent ratings from specialized websites ranging from 16/20 to 19/20.

Publishing sales should simultaneously be back to growth with the launch of two new gaming titles, 2Dark and Flat-Out as well as with the international deployment of WRC6 and repeat orders for The Voice game. Sales of this last title will be supported at the beginning of 2017 by a strong marketing of the video game by French major TV channel TF1 during the broadcasting of the new season of this TV game.

The Mobile business will be hallmarked by the further success of Force GlassTM protection screens and by the development of accessories for the new releases of iPhone, Samsung and Huawei, while Audio should record stronger sales in Thomson products.

Banking on its pipeline of gaming titles which should generate over 50 M€ in Publishing for FY 2017/2018, on the market potential of the REVOLUTION Pro Controller as well as on its prudent currency hedging policy, the Bigben Group confirms the targets announced for its Horizon 2018 Plan as follows:

• 2016/2017: sales between 200 M€ and 210 M€ and a result from current operations over 5%,
• 2017/2018 an accelerated sales growth and a result from current operations over 7%.

Upcoming publication:

Annual sales 2016/17 : Monday 24 April 2017 Press release after close of the stock market

ABOUT BIGBEN INTERACTIVE

SALES 2015-2016 202,2M€	Bigben Interactive is a European player in video game publishing, in design and distribution of smartphone and gaming accessories as well as in audio products. The Group, which is recognized for its capacities in terms of innovation and creativity, intends to become one of Europe's leaders in each of its business segments.
HEADCOUNT ca. 350 employees	Company listed on Euronext Paris, compartment C – Index : CAC SMALL – Éligible SRD long ISN : FR0000074072 ; Reuters : BIGPA ; Bloomberg : BIGFP
INTERNATIONAL 9 subsidiaries and a distribution network in 50 countries	PRESS CONTACTS CapValue – Edouard Miffre emiffre@capvalue.fr - +33 1 80 81 50 02 CapValue – Gilles Broquelet
www.bigben-group.com	gbroquelet@capvalue.fr - +33 1 80 81 50 01