Funcom Q1 2012 Finances

Funcom today released the financial details for the first quarter of 2012, and the results are mixed. Age of Conan continues to be Funcom’s major source of income, although revenue is down due to the release of a “large competitor.” Revenues dropped from 3,389 TUSD in Q1 2011 to 2,293 TUSD this quarter. The Secret World continues to be a major drain on Funcom’s finances.

On the good side, Funcom’s current flock of titles (Age of Conan, Anarchy Online, Bloodline Champions) continue to remain at a positive cash flow, bringing in some much needed funds to keep The Secret World going. Funcom notes much more positive reactions to The Secret World than Age of Conan at the same time before its launch, and projects a higher retention rate than Age of Conan.

At the current rate, The Secret World is projected to sell 30% more than Age of Conan, with in-game store sales marking 35% of the game’s projected revenue, and a healthy retention rate of 490 thousand subscribers. A poor retention rate would be around 280 thousand.

Additionally, Funcom has come upon $22 million in standby equity which can be drawn upon as the company desires.

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