Funcom Q2 2019: Conan Exiles Strong, Unconquered Not So Much

Funcom this week published their second quarter results for 2019 and they are pretty much okay.

Funcom’s CEO Rui Casais referred to 2019 as a transition year for Funcom between the turnaround and growth phases of the company where those changes may not be immediately visible. Presumably he is referring to Funcom’s revenue and profit for the second quarter which despite boasting a 53% increase from last quarter is moderately over half of last year’s numbers. $8.9 million in revenue in Q2 2019 compared to $15.2 million in 2018 as well as $600,000 in profit compared to $5.8 million in 2018.

The numbers makes sense as 2018 brought in Conan Exiles and Mutant: Year Zero and Funcom didn’t have as big of a title to publish this year outside of Conan Unconquered which didn’t quite live up to expectations. On the plus side, the company has shed its $3.4 million in debt since last year and is in a strong, growing cash position.

With Conan Unconquered we saw an opportunity to experiment with a low budget game in a new genre for Funcom, “Real-Time Strategy”. We worked with a developer with a long track record in the genre to create a small game that isn’t a classical example of the genre, but a twist on it. Unfortunately, the reception from the players was not as positive as we hoped for. We are grateful for their feedback and based on that feedback we have made free updates to the game and have a larger update ready to go out soon. We are improving our processes based on this experience and we still believe in this genre, but it’s clear that the budget and quality of this game was not high enough.

Conan Exiles continues to be the strong performer in terms of revenue and funding Funcom’s other projects. The report does note that the success of Conan Exiles showing the company’s strength in multiplayer games as a service, that the Conan single player game has been put on hold in order for the Oslo team to focus on continued content for Exiles as well as the Dune open world multiplayer game set to release soon™. The Funcom North Carolina team is working on a multiplayer shooter that they hope to bring to market in 2020, while the company is also publishing Moons of Madness and Conan Chop Chop, as well as other titles yet to be announced.

Dune is currently listed as in pre-production while the coop shooter based in the Mutant: Year Zero IP is in production. Moons of Madness, a game set in the Secret World universe, is on track for a Halloween 2019 release with Conan Chop Chop to come in 2020. Funcom is also engaged in joint operations surrounding the Kult RPG franchise, Solomon Kane, Mutant Chronicles, and Doom Trooper along with other lesser known franchises.

Source: Report, Presentation

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