Infogrames halves losses

Atari parent company sees slight dip in full-year revenue to $450 million, but losses trimmed significantly to $79 million.

Closing out last week, Atari gave the industry its first look at the tangible impact that its extensive shake-up has had on the company. Said reorganization has included the addition of big names such as Phil Harrison, Jim Wilson, and David Gardner to the highest ranks of both it and its parent company Infogrames. For its full fiscal year, Atari's efforts showed signs of traction, with the publisher trimming losses to $23.6 million, but at the cost of reducing annual revenues to just $80.1 million.

Today, Infogrames released its own full-year and fourth-quarter earnings statement, and the French company saw trends similar to its subsidiary. For the year ended March 31, 2008, Infogrames saw revenues decline to €290.7 million ($450 million) from €305.3 million ($473 million) the year before. Despite shrinking revenues, Infogrames managed to halve its losses for the year, posting a net-income loss of €51.1 million ($79 million) compared to €103.1 million ($160 million) from the previous year.

"Last year has been a difficult but crucial period for the Group," commented CEO David Gardner. "During that period, Infogrames has carried out an intensive restructuring of its capital base, leading to an improved financial situation and has initiated an important reorganization of its global distribution network and management structures. In the months ahead, we will capitalize on the value of the Atari brand and implement the new strategy, with the clear objective of refocusing on profitability while ensuring growth."

Breaking out performance by region, Infogrames noted that the European and Asian markets accounted for 82 percent of total sales, with the US constituting the remaining 18 percent. Namco Bandai-developed games led Infogrames' publishing efforts, with Dragon Ball Z Tenkaichi 3 on the PlayStation 3, DBZ Tenkaichi on the Wii, and Naruto Ultimate Ninja on the PlayStation 2 selling more than 3.5 million units. Other top performers included CD Projekt Red's The Witcher, which has sold more than 420,000 units, and Etranges Libellule's Asterix at the Olympic Games moving 530,000 units across the PS2, Wii, DS, and PC.

Looking ahead, Infogrames expects to grow revenues by 12 to 18 percent during its 2008-2009 fiscal year, thanks in large part to the extensive steps that it has taken to "transform" Atari. Those steps included the purchase of all outstanding stock in Atari so as to take the company private, as well as the reduction of expenses incurred from outstanding debt with the issuance of €150 million ($233 million) in convertible bonds.

Infogrames plans to continue honing its Atari strategy by reducing head count from 540 to 460, as well as consolidating its global business into five large, regional units as a way to increase efficiency. The publisher also reinforced Harrison's statements from last month, saying it would be funneling a substantial portion of its research and development budget into developing its online strategy. The publisher expects to turn a profit within 18 months.

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Discussion

17 comments
kalclash
kalclash

WARNING! Do not buy Alone in the Dark! It is aweful!!!

dubel_07
dubel_07

I want it really badly, I can't wait.

TrondBraaten
TrondBraaten

Got the limited edition in the mail about an hour ago! Looks great!

ctg867
ctg867

Well that's good.... right?

Zerosumgame
Zerosumgame

Try making mroe Ps3 games, you can turn things around for sure.

arc_salvo
arc_salvo

Well, this all sounds good to me. As long as they keep releasing decent-good rpg's like Neverwinter Nights 2, but don't rush them out before they were finished (which is what happened with NWN2) I think it's good that they're succeeding.

Pete5506
Pete5506

There is just something bad there

Kazona
Kazona

Just goes to show what a difference it can make if you have the right people and a good plan.

Adam_the_Nerd
Adam_the_Nerd

It's good to see one the company that has Atari as a subsidiary is picking up again.

Prasath1993
Prasath1993

Well atleast they some good games to play with.

akiwak
akiwak

Atari!!!!! Maybe the Leo DiCaprio movie might help bring life to this troubled franchise.

mask_killer
mask_killer

What was the last great PC game they made? (unreal1) If they got back to making good one there would be a turnaround.

al-masri
al-masri

GOOOOOOOOOOO BIG PHIL!!!!!!!!!!

ocdog45
ocdog45

all you do is loose money in this buisness

Franko_3
Franko_3

420 000 copies for the witcher in the us only is very good :D

casshern
casshern

INFOOOOOGRAAAAAMMMESSSSSS, yeah