Funcom’s final quarterly report of 2015 has released, and the results are not so pretty. Revenues dropped to $2.5 million from $2.9 million over the same period last year, due to Funcom’s major sources of revenue (their MMOs) declining with age. In addition to a loss in equity and earnings, the total cash position of Funcom dropped from $1.1 million in the third quarter to 616 thousand in the fourth. The company’s cash flow for 2016 and beyond is set to be secured via sale of stocks as well as a convertible bond.
On the games front, Funcom’s primary revenue drivers continue to be Age of Conan, Anarchy Online, and The Secret World. The Park met all non-revenue related goals while selling in line with internal expectations. For those who have forgotten, in a previous financial report Funcom did not expect The Park to generate any significant source of revenue. For the first quarter, Funcom expects to launch The Park on Xbox One and Playstation 4, increasing revenues as well as expanding the company into the console market.
And while Funcom’s revenue did increase over the third quarter, this kind of result is to be expected. I’ve brought this up in previous articles but fourth quarter earnings being higher than third quarter are normal, due to the holidays and in this case a new game release. The fourth quarter is normally followed by a drop in sales in the first, which means that any growth is out of the ordinary and therefore better than expected.
As mentioned in previous releases, Funcom’s strategy going forward is to work on small budget, experimental projects working existing IPs into new technologies and platforms. The fruits of this labor will hopefully bear, at minimum, one small game per year and one larger title in development at all times. The Park is the first small game to be released under this plan with Conan: Exiles the first large title.
(Source: Funcom)
MMO Fallout 