Tag: Financial Report

Star Vault today released their third quarterly report for 2011, and the results are rather similar to last quarter. For the first time, Star Vault has reported a loss in subscribers, even though sales of the game client itself are up. In the usual manner, I’ve included the fun facts for you all to enjoy. Do bear in mind that there may be some inconsistencies and poor grammar, as my source is the poor translation of Google from a Swedish document.

• Star Vault’s Q3 net sales amounted to 706,404 SEK, but the company’s net earnings remains in the red (-720,790 SEK)
• Subscriber numbers declined in the third quarter, which Star Vault attributes to the delay of Territory Control.
• Sales of the game itself increased in Q3 over Q2.
• Territory Control hopes to bring in more players who “really take gaming seriously.” (their words, not mine)
• Star Vault is still working with OnLegends to bring Mortal Online to a wider audience.
• Star Vault’s gross profit for the first nine months was 4.3 million SEK ($622 thousand USD).
• Administrative Expenses ran up 1.3 million while research and development gobbled up 2.1 million.

And because you were waiting for this part of the quarterly update:

Program to reduce our costs are developing well and we expect and that the outcome of this will reflected fully in January 2012. With our current cost structure, we consider that further approximately 500 players to achieve break-even, a goal that we are due to the delay of further expansion expected to achieve first quarter of 2012.

And an interesting note on why Star Vault has been in the red:

In June 2011 signed an agreement with Star Vault LeKool (Chinese publisher) when the fast-growing gaming market for English-language games in China is one such market that the company could not reach before. Along with LeKool open this opportunity up and Mortal Online expands thus into this interesting market. The business model means that the cost of operation increases to a much lower rate than revenues, when number of players increases. Star Vault will continually monitor price developments in the industry to offer players market prices. In the longer term, the Star Vault to develop and sell new games.