Funcom’s 2013 Income Drops

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Funcom has released their Q4 2013 finances and the results are a mixed bag, mostly leaning towards the negative. Revenues in the fourth quarter dipped below last quarter, $4.2 million compared to $5.3 million and far below the same period last year. Losses in revenue pointed toward weak sales due to increased competition in 2013. Funcom has continued to invest in LEGO Minifigures Online as well as the Dreamworld platform so that the former is compatible across multiple systems, including mobile devices.

The new strategy for 2014 is to increase communication with press and analysts on where the developer is headed in the future. As announced in 2012, the new strategy is to build mid-core focused games with smaller budgets and shorter development times using smaller teams. Also among the list of goals is to build games around known brands, hence the Lego Minifigures title. With the introduction of the Dreamworld technology, Funcom’s future games will be compatible with iOS and Android platforms.

Funcom’s large scale MMOs saw a decrease in activity level due to increased competition in the last quarter, which the developer has responded to with increased marketing campaigns that have resulted in higher activity and revenue in the early first quarter. Numbers and revenue in Age of Conan and Anarchy Online remained mostly stable, and all games are currently considered cash flow positive. The Lego Minifigures game is on track for an open beta this summer, with a tablet version available sometime this year. Lego Minifigures will be free to play with microtransactions, membership benefits, or some mixture of both.

As many of our readers know, Funcom is currently being investigated by Økokrim, Norway’s economic crimes unit, on suspicion of insider trading and negligence in information given to the market leading up to the launch of The Secret World. So far no employees have been charged and Funcom has not been informed as to how long the process will take.

(Source: Funcom Earnings Release)

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