Tag: finances

Funcom’s Q1 2013 Finances


jomali

Funcom has released their Q1 2013 financial details and the news is…good? Revenues have almost tripled compared to the same time last year thanks to the launch of The Secret World last year, which along with Age of Conan now make up the bulk of Funcom’s revenue. As many of you know, Funcom consolidated its live teams to the hub in Durham, North Carolina. Moving forward, the focus is on the developer’s currently operational games as well as a small number of titles currently in development.

As per the above, the company expects the positive effect from the restructuring to materialize in full in the second half of the year. However, significant cost savings were realized in 1Q13 and the operating costs decreased by 1,197 TUSD compared to the previous quarter and by 2,232 TUSD compared to 1Q12.

The Secret World enjoyed its first full quarter under the new buy to play system, increasing player numbers and retention along with the launch of Issue #6: The Last Train To Cairo. Issue #7 releases this summer. Anarchy Online experienced a server merger which increased activity and players on the remaining servers. Funcom continues to work on the major engine upgrade to Anarchy Online. The Lego Minifigures MMO is on schedule for release and is currently in development for the PC in both client and browser form, as well as tablets.

One of Funcom’s lesser known titles, Fashion Week Live, was sold to 505 Games in Q1 2013. Funcom’s Montreal studio is currently working on bringing the Dreamworld technology to tablets, opening new opportunities for the developer. Funcom expects more cost reductions and lower revenues in the second quarter.

(Source: Funcom Finances)

Star Vault's Q1 2013 Shows Growth


starvault

Star Vault has released their Q1 2013 reports and things are looking up, somewhat. The Swedish developer notes a combination of increased subscriptions since last quarter as well as the introduction of the ability to donate money for development, as contributing to the company’s revenue growth in 2013. Star Vault’s net sales for Q1 2013 amounted to slightly over $100 thousand USD, or a 45% rise since Q4 2012. Net profit has come closer to reaching profitability with a similar 47% rise to just over seventy grand in the red.

Henrik Nystrom commented on Star Vault’s outlook:

We are cautiously optimistic about 2013, and we may for the first time in a long time see that the increase in player activity begins to appear in our quarterly report. Revenues from our movement has grown and we have achieved a positive cash flow. I would add that the figure includes a bridge loan 394 000 SEK, which in turn is related to a private placement.

Star Vault is still aiming to get Mortal Online approved via Steam Greenlight.

As for game development in the first quarter of 2013, we have mainly focused on fixing bugs and polishing the Mortal Online since we are high listed on STEAM Greenlight, called the list for the U.S. distribution channel STEAM, which we plan to release our game in the near future. Before this game release is done, we need to prepare for increased traffic both game code-wise but probably also the size of the physical game area. We continue to make the first gameplay in Mortal Online as well and smooth as possible for the players can more easily get into the game and quickly start developing their characters.

(Source: Star Vault Q1 2013 Finance Report)

Star Vault’s Q1 2013 Shows Growth


starvault

Star Vault has released their Q1 2013 reports and things are looking up, somewhat. The Swedish developer notes a combination of increased subscriptions since last quarter as well as the introduction of the ability to donate money for development, as contributing to the company’s revenue growth in 2013. Star Vault’s net sales for Q1 2013 amounted to slightly over $100 thousand USD, or a 45% rise since Q4 2012. Net profit has come closer to reaching profitability with a similar 47% rise to just over seventy grand in the red.

Henrik Nystrom commented on Star Vault’s outlook:

We are cautiously optimistic about 2013, and we may for the first time in a long time see that the increase in player activity begins to appear in our quarterly report. Revenues from our movement has grown and we have achieved a positive cash flow. I would add that the figure includes a bridge loan 394 000 SEK, which in turn is related to a private placement.

Star Vault is still aiming to get Mortal Online approved via Steam Greenlight.

As for game development in the first quarter of 2013, we have mainly focused on fixing bugs and polishing the Mortal Online since we are high listed on STEAM Greenlight, called the list for the U.S. distribution channel STEAM, which we plan to release our game in the near future. Before this game release is done, we need to prepare for increased traffic both game code-wise but probably also the size of the physical game area. We continue to make the first gameplay in Mortal Online as well and smooth as possible for the players can more easily get into the game and quickly start developing their characters.

(Source: Star Vault Q1 2013 Finance Report)

NCSoft Q1 2013 Finances


ncsoftq412

(I apologize for the outdated screenshot. I will update with a graph once I’m in front of a real computer.)

NCSoft has released their first quarterly report for 2013, and I’m sure we are all wondering how Guild Wars 2 will perform following the initial rush, so let’s dive in. Sales remained strong in 2013 thanks to Guild Wars 2, Aion, and Lineage. Profit is understandably down since last quarter’s launch of Guild Wars 2, however NCSoft’s year over year figures are amazing: 31% higher sales, 348% increased profits, 256% pre-tax income, and 322% net income over Q1 2012.

Lineage 1 continues to be NCSoft’s big seller, consisting of 38% of the total game sales in Q1, with Guild Wars 2 at 21% and Aion at 16%. Aion and Lineage saw an increase in sales quarter over quarter while Lineage II, Guild Wars, and Blade & Soul saw a mild to heavy loss. NCSoft as a parent company has thankfully recovered from being in the red last quarter for pre-tax income and net income.

Korea remains NCSoft’s largest market at 64%, with North America and Europe dropping by about half to 13% and 8% respectively, Japan’s 7% percentage share remained the same even though sales dropped. Sales in Taiwan increased slightly, remaining at 1%. Royalties dropped about one third in total, remaining at the 6% percentage value from the last quarter.

As usual, Guild Wars is bundled in with the “other” and is not represented by its own category. For legal reasons, I must remind you that these results are un-audited and may be subject to change during the auditing process.

Funcom Q4 2012 Report


jomali

Letter from the editor: In performing the regular sweep of unused drafts (and there are plenty of them) on the MMO Fallout database, I realized that this report for Funcom’s Q4 finances never published. The article was scheduled to publish on March 1st, the same day that Funcom published their own finances, but for some reason unknown to myself, it was never automatically published. That said, it was my responsibility to ensure that the article was published, and in that regard I apologize.

Funcom has released their Q4 financial documents for 2012, and there is quite a bit to behold. In the fourth quarter, The Secret World saw its transformation into a buy to play game, increasing sales by 30% overall and quadrupling in-game activity. Revenue in the fourth quarter came to $7.7 million USD, a quarterly loss from previous quarter’s $10.9 million while still a major increase over the fourth quarter of 2011. Funcom’s major source of revenue continues to be The Secret World and Age of Conan, and while player numbers in The Secret World skyrocketed, numbers in Age of Conan and Anarchy Online have been fairly stable.

A positive cash flow has allowed Funcom to repay borrowings amounting to $7 million USD, and continue the restructuring of the developer which began in 2012. Funcom expects to finalize the restructuring by the end of April.

Q4 2012 saw the discontinuation of service for Bloodline Champions in Russia. Work on Funcom’s upcoming LEGO Minifigures MMO is going well, with all milestones reached and the game on schedule for release in the first half of 2014. The Oslo based team is working on bosses and encounters, as well as work on backend systems and a tablet version of Minifigures. Funcom’s Montreal Studio is also working on mobile and tablet games, small projects with development times of 1-24 months. The Secret World has become one of the best selling titles on Steam since its transition to buy to play.

Companies House Proposes Striking Off Jagex Ltd.


jagex-games-studio

Update: I made a mistake in calling the fines “heavy.” The fine is actually about 750 pounds, which a company with Jagex’s income wouldn’t even notice.

The drama continues. Last week we talked about how Jagex is currently three months late on filing its annual financial statements. According to Companies House, Jagex was supposed to file its returns by September 30th, something which the UK developer has still yet to do going into the new year. I noted that while Companies House handles late filings on a case by case basis, and that companies like Jagex generally file late due to issues with third party accounting firms, that there are some potentially heavy consequences if the statements are not filed soon, including fines and charges against the executives and, in more serious situations, complete liquidation of the company. We can speculate all we like, however, but only one thing is clear: with the reason behind the delay shrouded in secrecy, all we know is that Jagex has still yet to file its reports.

Companies House has updated Jagex’s company status to “Active – Proposal to strike off.” What this means is that the registrar no longer views Jagex as actively doing business, given that the company is more than three months behind on sending in proper papers. The Companies House website notes that the proper procedure in dealing with an involuntary strike off is as follows:

Before striking a company off the register, the registrar is required to write two formal letters and send notice to the company’s registered office to inquire whether it is still carrying on business or in operation. If he is satisfied that it is not, he will publish a notice in the relevant Gazette stating his intention to strike the company off the register unless he is shown reason not to do so.

So is Jagex going to be shut down? All public signs point to no chance that Companies House would view one of the largest UK developers as no longer in operation, and that no one at Jagex is insane enough to ignore two letters from Companies House. What is more likely is that, should they still fail to turn in the proper documents, Jagex will likely be on the receiving end of some light fines. That is, before the wrath of very angry investors falls down upon their shoulders.

Thank you to the folks at Stellar Dawn Central for keeping a watch on the situation.

(Source: Companies House)

Funcom Q3 2012 Finances


The third quarter results are in for Funcom, and the news is a mix. The Secret World has launched and revenues for the third quarter are 10,963 TUSD, more than double for the same quarter in 2011 and far higher than in the second quarter of this year. Unfortunately  due to the poor launch of The Secret World in July, new estimates show that the company may not achieve a positive cash flow in 2013. All of Funcom’s titles that have launched are in a position of bringing in a positive cash flow, while development continues for Funcom’s Lego Minifigures MMO, as well as Project A revealed previously and in conceptual stages. The Lego MMO is set for a 2014 launch.

Now for some juicy speculation. Funcom stated that 30-40% of The Secret World’s income is from the cash shop. Since The Secret World pulled in $1.1 million USD in October, and we’ll go the low route and say 70% is from subscriptions and they are all people paying the $15 a month. That leaves Funcom with approximately fifty one thousand subscribers for The Secret World in October. This number is either great or terrible, depending on your perspective. Hopefully it is more than enough to keep the MMO going.

Funcom has retained ABG Sundal Collier and GP Bullhound, leading some to believe that the development studio is on the verge of selling itself off to the highest bidder.

Star Vault Q3 2012


Profits and sales are down from last quarter in Star Vault’s latest reports. According to the latest financial documents, subscriber count decreased in the third quarter compared to the second, despite the release of Mortal Online’s expansion Awakening. Awakening aims to bring new players into Mortal Online by making the game more user-friendly.

Next on the list is promotion. Star Vault hopes to have Mortal Online present on Steam. And once again for the moment we all anticipate each quarter: Star Vault anticipates break even in…unknown. The previous expectation for September or October has obviously not come to fruition, due to a break in the upward trend when the estimation was first given. Star Vault will prepare Mortal Online for 2013.

Other than that, no surprises for Q3.

NCSoft 3rd Quarter Finances: Significant Growth From New Products


The folks at Arenanet and Team Bloodlust must be breaking open the champagne today, as NCSoft’s financial statements for the third quarter of 2012 reveal that Guild Wars 2 and Blade & Soul aren’t just bringing home the bacon, they are weaving it and frying it to perfection. Guild Wars 2 launched strong in the United States and Europe, while Blade & Soul ripped up the carpeting in Korea. Both games contributed to a massive 50% year over year gain in profits for NCSoft, pulling the developer up from its operating loss from last quarter that saw heavy corporate restructuring and the cancellation of City of Heroes. Both titles should receive a bump in revenue, as Guild Wars 2’s sales do not include Asia, and Blade & Soul has not launched in the West.

On the other hand, every rose has its thorn. As you have likely noticed, both Guild Wars and City of Heroes are no longer listed. Aion continued its free fall in sales while Lineage II continues its considerably slower downturn. The bump that Lineage received in the second quarter is clearly over and done with, as sales fell to below the fourth quarter sales trough in 2011.

Funcom Q2 2012 Highlights


Funcom’s second quarter finances are out, and the results are rather predictable. Since we already know from previous reports that The Secret World failed to meet up to Funcom’s expectations, and greatly so, it comes as little surprise that the recently launched MMO has pulled in less than half of Funcom’s previous “Conan-like” scenario. The second quarter also has the bad luck of taking in all of The Secret World’s development costs with little of its income, due to head start not beginning until the end of July.

The Company still considers it likely that sales for the 12 months period following launch of the game will be less than half of what was presented in the Conan-like scenario in 1Q presentation.

Revenue was down once again compared to the previous quarter, due to Funcom’s main source of revenue (Age of Conan) taking yet another hit in sales. That being said, all of Funcom’s currently launched MMOs are rated as “cash flow positive.” The Secret World has sold more than 200,000 copies since launch, as noted in the filing, with what Funcom says is a strong and positive reaction from its user base. Funcom recently launched a number of titles, including The Secret World, the MOBA Bloodline Champions, and a couple of free to play social games.

For the future, Funcom has a few titles under its belt. Revealed earlier this year, Funcom has partnered with Lego to create an MMO based on the mini-figures. Additionally, the report mentions a large-scale MMO titled “Project A.” No doubt we will be hearing more about that in the future.

(Source: Funcom Investor)