Tag: finances

Mortal Online Q2 2012: Sales Down, Profit Up Slightly


It is the end of August, and that means financial records aplenty. Star Vault has released their second quarter finances for 2012, and the results are mixed. The number of monthly payments during the second quarter decreased compared to the previous report, as well as the sale of licenses. In the release, Star Vault notes that the launch of the expansion Awakening aims to make Mortal Online appeal to a wider audience, and there is something for players to do constantly, even if they are not interested in conflict.

The launch of Awakening has also lead to the reactivation of accounts and an increase in sale of new licenses, according to Henrik. Star Vault now expects to break even at some point in September/October.

Star Vault’s Greatest Risk: Lack Of Demand


Earlier this month, Star Vault released their Annual Income report for 2011. There wasn’t much in the document that we didn’t already know from last year, but at one point the company lays out what it refers to as Mortal Online’s “greatest risk.”

Star Vault’s greatest risk is a lack of demand for its product. An insufficient market risk the company’s earnings and ultimately the financial position. Risk is an inherent part of all business and continuously examined, and the highest priority. Based on each individual situation later approved measures to limit the risks.

In the past, Henrik Nystrom has admitted that Mortal Online’s steep learning curve, less than user friendly atmosphere, and hardcore PvP atmosphere were the biggest factors for Mortal Online’s lack of widespread appeal. In the first quarter of this year, however, Mortal Online’s sales sharply rose 50% in February, and the developer enjoyed a subsequent rise in revenue in profits for the appropriate quarter (Q1 2012).

Star Vault’s second quarter releases should be out by the end of the month.

Star Vault's Greatest Risk: Lack Of Demand


Earlier this month, Star Vault released their Annual Income report for 2011. There wasn’t much in the document that we didn’t already know from last year, but at one point the company lays out what it refers to as Mortal Online’s “greatest risk.”

Star Vault’s greatest risk is a lack of demand for its product. An insufficient market risk the company’s earnings and ultimately the financial position. Risk is an inherent part of all business and continuously examined, and the highest priority. Based on each individual situation later approved measures to limit the risks.

In the past, Henrik Nystrom has admitted that Mortal Online’s steep learning curve, less than user friendly atmosphere, and hardcore PvP atmosphere were the biggest factors for Mortal Online’s lack of widespread appeal. In the first quarter of this year, however, Mortal Online’s sales sharply rose 50% in February, and the developer enjoyed a subsequent rise in revenue in profits for the appropriate quarter (Q1 2012).

Star Vault’s second quarter releases should be out by the end of the month.

NCSoft Q2 2012: Profits Down, Revenue Up


NCSoft has released its finances for the second quarter of 2012, and considering that the major MMO news sites suddenly care enough to report on it, I can only assume that there is some drama to be had. Compared to last quarter, revenues are up thanks to solid Lineage sales and royalties, however NCSoft is in the red on operating profit and net income due to what the company refers to as “one-off labor costs.” Here are the bullet points of important details to explain why NCSoft’s profits sunk so low:

  • Lineage sales were strong Korea, however Aion sales tanked due to “scaled back in-game item sales.”
  • Labor costs surged 27% this past quarter due to severance-pay.
  • Royalty expenses increased 35%
  • Marketing expenses were up 112% over last quarter due to Blade & Soul
  • D&A increased 28%
  • NCSoft’s acquisition of Ntreev also ended up being a major cost.

While sales in Korea and Japan held strong, sales in North America continued a slight decline over last quarter. Europe has been hit the hardest, with sales decreasing to virtually nothing (less than 1% of sales for the quarter).

The launch of Guild Wars 2 is expected to make up for any losses incurred this quarter.

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.

Mortal Online Q1 2012: Sales Up, Mortal Online on “Major Gaming Platforms”


More news from the Star Vault…vault. The financial details for Star Vault’s first quarter have been released, and it appears the trend may finally break. Back in February, Henrik Nystrom announced a 50% increase in sales and an 80% increase in user activity. During the 2011 interim report, Star Vault revised its projection of breaking even in 2011 to a new prediction that the game would break even in the second quarter of 2012.

According to Star Vault’s reports, the number of monthly subscriptions increased slightly compared to the fourth quarter. The sale of licenses increased 68% from last quarter. Even with the increase in sales, Henrik notes that the game could still be friendlier to new players, which the company intends to accomplish with the release of Awakening in Q2 2012.

It is important to emphasize that the expansion includes enhancements and additions that we hope will appeal to the wider audience. Among other things, it will be easier to get into the game for new players. The expansion will also lead to the constant will be something interesting to do in the game, although it would not be interested in playing conflicts and / or war.

Henrik also mentions Mortal Online appearing on “major gaming platforms.”

According to our assessment, we, following the launch of “The Awakening”, to meet the standard requirements that exist for a game to be approved on the major gaming platforms.

More on Mortal Online as it appears.

(Source: Star Vault press email)

Mortal Online Q1 2012: Sales Up, Mortal Online on "Major Gaming Platforms"


More news from the Star Vault…vault. The financial details for Star Vault’s first quarter have been released, and it appears the trend may finally break. Back in February, Henrik Nystrom announced a 50% increase in sales and an 80% increase in user activity. During the 2011 interim report, Star Vault revised its projection of breaking even in 2011 to a new prediction that the game would break even in the second quarter of 2012.

According to Star Vault’s reports, the number of monthly subscriptions increased slightly compared to the fourth quarter. The sale of licenses increased 68% from last quarter. Even with the increase in sales, Henrik notes that the game could still be friendlier to new players, which the company intends to accomplish with the release of Awakening in Q2 2012.

It is important to emphasize that the expansion includes enhancements and additions that we hope will appeal to the wider audience. Among other things, it will be easier to get into the game for new players. The expansion will also lead to the constant will be something interesting to do in the game, although it would not be interested in playing conflicts and / or war.

Henrik also mentions Mortal Online appearing on “major gaming platforms.”

According to our assessment, we, following the launch of “The Awakening”, to meet the standard requirements that exist for a game to be approved on the major gaming platforms.

More on Mortal Online as it appears.

(Source: Star Vault press email)

NCSoft Q1 2012: Aion/Lineage Up, Lineage 2 Down


NCSoft has published their first quarter finances, and as always there is good news and bad news.

  • Quarterly sales were up, although profits were down nearly 20% due to increased labor cost, royalty expenses, and other factors.
  • Korea grew due with sound in-game item sales, while Japan dropped.
  • Aion and Lineage performed strongly.
  • Lineage 2 saw a notable loss in sales due to a “weakened user base,” according to the report.
  • City of Heroes also dropped in sales, while Guild Wars saw an increase.

The data above is sourced from the official NCSoft earnings releases and is presented in a more digestible form.

Funcom Q4 Finances: Project A Unveiled


In their third quarter finances, Funcom predicted a lower revenue for quarter four on account of the initial fervor over Age of Conan’s free to play ending. In the presentation, released today, Funcom reaffirmed this by posting a revenue loss of 11% quarter over quarter.

While Age of Conan remains Funcom’s primary source of income, revenue for the title was down compared to the previous quarter when Funcom launched free to play. Bloodline Champions, Funcom’s MOBA, saw an increase in profits thanks in part to the launch in Russia.

Quarter 1 2012 revenues are expected to be even lower due to a further decreased revenue from Age of Conan. Age of Conan, Anarchy Online, and Bloodline Champions continue to generate a positive cash flow for Funcom, brought down by the costs of developing several titles.

The finances also make reference to “Project A,” an MMO in the conceptual stage.

(Source: Funcom)

Star Vault Interim 2011 Report


I apologize for the poor translation. Finances have been translated to USD using rates provided by Google and accurate as of January 25, 2012. All of this information was sourced via official financial documents translated through Google translator. You can view the original document here.

Star Vault has released its combination Q4 and 2011 Interim Report, showing a decrease in subscriptions and a continued drop in profit. In addition, the company has announced an unspecified number of layoffs.

Q4 2011 Points of Interest:
Net Sales: $82,661 (from $103,515 in Q3)
Profit after Finances: $-123,119 (from $-105,623 in Q3)

Subscriber numbers were down in Q4 compared to Q3 (which saw a jump in sales but lull in subscribers). Star Vault attributes this to the game being difficult to new players. The number of forum members increased by about 600.

Interim 2011:
Net Sales: $408812 USD
Profit after financial items: $-505,751

Earlier in 2011, Star Vault voted for the sale of 9.9 million shares, bringing in $528,000 (before transaction fees) to repay a loan. In June, Star Vault announced partnership with LeKool for publishing Mortal Online in China.

In order to reduce costs, Star Vault has reduced its number of employees.

Star Vault has over the past year undergone some changes and we have among other things, forced to revise the previous target to achieve breakeven in 2011. One reason for this was to Mortal Online has not adhered to the players’ high expectations and that Star Vaults cost base has been too great. We have learned lessons from what happened during the journey and is working hard to develop the game in the right direction. One change we have implemented to reduce the above cost base is above all that we have reduced the number of employees and instead will make use of consultants as necessary.

With the release of Dawn and Territory Control expansions, Star Vault hopes to make Mortal Online the most challenging PvP game.

And the moment that we were all waiting for, Henrik’s statement on the state of the game.

With our current cost structure of the Board believes that we are very close to achieving break-even, a goal we hope to achieve during the second quarter of 2012. We have a strong belief in Mortal Online, and still see great opportunities in the market we are.