Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com -- Asmodee Group’s (ST:ASMDEEb) first-quarter net sales rose 32% to €349 million from €264.4 million a year earlier, driven by a 49.9% increase in partner-published game sales, the company posted on Friday.
Organic growth accounted for 34.4% of the increase, while structural changes reduced sales by 0.5% and currency effects lowered them by 1.9%.
Partner-published titles, which brought in €260.9 million, benefited from releases such as the “Pokémon Trading Card Game: Scarlet & Violet – Glory of Team Rocket,” “Magic The Gathering – FINAL FANTASY,” and continued sales of “One Piece.”
Games published by Asmodee studios fell 1% to €78.5 million, weighed by weaker U.S. demand, foreign exchange impacts and high online retailer inventories.
Other revenue declined 12.4% to €9.7 million, partly reflecting the sale of Twin Sails Interactive.
Adjusted EBITDA rose to €39.9 million from €29.6 million, with the margin improving to 11.4% from 11.2%, supported by lower relative personnel costs and higher volumes.
Adjusted EBIT increased to €32.9 million from €21.9 million, and EBIT climbed to €15.3 million from €5.8 million.
Adjusted net profit was €13.7 million, up from €7.4 million. The company reported a net loss of €1.6 million, narrower than the €6.9 million loss a year earlier, with basic earnings per share at €-0.01 compared with €-0.05.
Trading card games were the quarter’s main growth driver in what the company described as a seasonally soft board game period.
Board game launches included the sixth edition of “CATAN,” “Toy Battle,” and “Dobble/Spot-It! – Stitch,” which sold out at release, along with early sell-in for “The Lord of the Rings: Fate of the Fellowship” and “Exploding Kittens The Boardgame.”
Free cash flow after tax and lease payments rose to €24.7 million from €14.9 million, improving free cash conversion to 62% from 50%.
Operating cash flow was €34.7 million, up from €18 million. Net debt stood at €404 million before mergers and acquisitions commitments and €509.2 million after, down from €882.1 million and €988.1 million respectively a year earlier.
The company attributed the decrease to a €400 million capital injection from Embracer Group, with €300 million used to repay gross debt.
During the quarter, Asmodee acquired the “Zombicide” intellectual property. The company also hosted the in-person finals of the “Ticket to Ride” 20th anniversary tournament in Paris and prepared for a major presence at GenCon in the second quarter.
"The direct impact of tariffs on margins in the first quarter was limited, as we continued to sell inventory purchased prior to the new measures. That said, US sales—mostly composed of published games—were down, partly due to softer consumer sentiment, some distribution friction linked to retail uncertainty and impact from foreign exchange," the Sweden headquartered company said in a statement.
Asmodee adjusted pricing, optimized supply chains and postponed some imports, with tariff effects expected in later quarters.