FY2023 Annual Results
PARIS, FRANCE (August 1st, 2023 – 8:00 am CET) – Atari®, a globally recognized consumer brand and a leader in interactive entertainment, has released its consolidated financial results for the fiscal year ending March 31, 2023. These results were approved by the Board of Directors during a meeting on July 31, 2023, and have undergone a thorough audit by statutory auditors.
FY2023 Operational Highlights
Key operational achievements for FY2023 include the successful completion of a €12.5 million capital increase and the termination of the licensing agreement related to the ATRI Token. Atari launched Atari X, a new initiative uniting its Web3 interests, and transitioned the listing of its shares to the Euronext Growth Paris market. The organization underwent significant transformations across its four business lines, resulting in the launch of eight premium games during the year. Additionally, the tender offer by Irata LLC was executed, and Atari extended its RollerCoaster Tycoon license for an additional ten years. The company also announced the acquisition of the Berzerk and Frenzy intellectual properties, along with an agreement to acquire Night Dive Studios, Inc.
Post-Closing Events
After the fiscal year ended, Atari acquired over 100 classic PC and console titles from the 1980s and 1990s and updated its listings on U.S. OTC markets. The company also acquired M Network’s Atari 2600 titles and related trademarks, and finalized the acquisition of Night Dive Studios, Inc. A €30 million convertible bond offering was conducted, along with the establishment of a strategic partnership with Playmaji Inc.
FY2023 Financial Performance Summary
Atari reported revenues of €10.1 million for FY2023, down from €14.9 million in the prior year. Game revenues rose to €7.3 million, an increase from €5.7 million in the previous year. The current operating income recorded a loss of €6.1 million, compared to a loss of €2.3 million the year before, while operating income stood at -€8.5 million, improving from -€23.0 million. The net loss for the year amounted to €9.5 million, down from €23.8 million in FY2022. CEO Wade Rosen remarked that these financial results reflect Atari’s ongoing efforts to realign its business strategy around core projects vital to the brand’s identity.
Highlights of the Period
Throughout the year, Atari concentrated on transforming its operations while establishing a new strategic direction across its four business divisions. In the gaming sector, the company focused on premium games by launching titles such as Atari 50: The Anniversary Celebration and new entries in the Recharged series. In hardware, Atari reorganized its operations and halted direct manufacturing relationships for the Atari VCS, implementing a new commercial strategy. Licensing efforts were enhanced with the support of a brand agency to explore new verticals and partnerships. In the Web3 domain, efforts centered on establishing Atari X, resulting in successful NFT sales despite unfavorable market conditions.
Breakdown of Revenues by Lines of Business
As of March 31, 2023, Atari’s consolidated revenues totaled €10.1 million, a decrease from €14.9 million the previous year. This decline reflects the strategic shifts implemented during the year and a one-time revenue spike in FY22 that was not repeated in FY23. Game revenues rose to €7.3 million, while hardware revenues dropped significantly to €0.7 million, impacted by the reorganization of the hardware division. Licensing revenues remained stable at €1.3 million, and Web3 revenues fell to €0.9 million, primarily from NFT sales in a challenging market.
Consolidated Income Statement Summary
The gross margin improved from 77% to 79% of revenues, attributed to reduced hardware costs following the suspension of VCS manufacturing contracts. Research and development expenses decreased to €4.4 million, reflecting a focus on premium game development. Marketing expenses also dropped significantly as part of efforts to enhance profitability. General and administrative expenses increased due to rising legal and personnel costs amid the company’s transformation strategy. Other income and expenses showed a loss of €2.5 million, down from €20.7 million the previous year, largely due to one-off items in the prior period.
Balance Sheet Summary
Atari’s total assets decreased from €26 million to €25.2 million, with non-current assets slightly declining, while current assets remained stable. The increase in intangible assets was driven by capitalized R&D expenses and the acquisition of new intellectual properties. Non-current liabilities rose to €9.5 million, reflecting shareholder loans and litigation provisions, while current liabilities decreased due to a significant reduction in trade payables. Shareholders’ equity saw a rise from €4.4 million to €7.8 million, mainly due to the capital increase.
Cash Flow Statement
The cash flow statement revealed a net cash increase of €1.0 million during the year, despite a net cash outflow from operating activities of €8.3 million. The company secured €14.7 million from financing activities, primarily through capital increases and loans from shareholders. The year-end cash position stood at €1.7 million, excluding proceeds from recent financial activities.
Strategy & Outlook
Looking ahead, Atari aims to leverage its intellectual property portfolio across gaming, hardware, licensing, and Web3. The company plans to enhance monetization of its extensive game catalog, continue developing new premium titles, and explore innovative hardware products. Licensing opportunities will be pursued in new verticals, and the Web3 ecosystem will be expanded with the launch of Atari Club.
Going Concern
As of March 31, 2023, Atari reported a net loss of €9.5 million but maintained a positive outlook regarding its liquidity and ability to meet future obligations. The company conducted a comprehensive review of its liquidity risk and believes it has sufficient resources to continue operations over the next 12 months, excluding potential growth opportunities.
Token Update
Atari has terminated its license agreement regarding the ATRI Token and will not create a new token due to changing regulatory landscapes. However, ATRI token holders will have the opportunity to claim a share of a third-party token pool. The company remains focused on expanding its core business areas while prioritizing activities in gaming, licensing, hardware, and Web3.
Annual General Meeting
The Shareholders’ Annual Meeting is scheduled for September 29, 2023, with further details to be announced shortly.
Availability of Audited Annual and Consolidated Financial Statements
The annual and consolidated financial statements for the fiscal year ending March 31, 2023, will be made available on the company’s official website.
About Atari
Atari is a prominent interactive entertainment company known for its legacy in the gaming industry. With a portfolio of over 200 unique games and franchises, Atari is celebrated for iconic titles like Asteroids®, Centipede®, and RollerCoaster Tycoon®. The company operates out of New York and Paris, maintaining a strong presence in the global gaming market.
