Eidos announces results and acquisition of Io Interactive
Eidos announces its interim results for the six months ended 31 December 2003 and reveals its intention to acquire Io Interactive.
Eidos has today announced both its interim results for the six months ended 31 December 2003 and its intention to acquire Copenhagen-based Io Interactive. Operating profits for the London-based publisher are up to £7.1 million ($12.96 million) from £5.4 million ($9.86 million) for the same six months last year, although the turnover for the period actually fell from £88.9 million ($162.29 million) in 2002 to £78.7 million ($143.66 million). Eidos believes that the fall in its turnover is a result of the weakening of the US dollar, disappointing US hardware sales, and the fact that two of its titles are failing to live up to expectations.
"I am pleased to announce operating profits pre-goodwill and exceptionals up 30 percent and profit after tax up 42 percent--our third consecutive profitable six-month period. This performance has been driven by the on-schedule release of a strong portfolio of quality games and demonstrates the benefits of our strategy of owned-IP supported by stringent cost and process controls," said Mike McGarvey, CEO of Eidos. "We look forward to the remainder of this financial year, which will see the release of some of our most exciting titles. We remain confident in meeting current market expectations for the full year to 30 June 2004."
One of Eidos' key upcoming titles is Hitman: Contracts, and the publisher today announced that it has entered into a conditional agreement to acquire the game's developer, Io Interactive. The deal is worth an initial consideration of £23 million ($41.99 million) in cash and stock, plus up to a further £5 million ($9.13 million) that's linked to the next four year's performance.
"We welcome the Io team of outstanding, technically creative developers, who we know share our vision and values," commented McGarvey. "The relationship and experience we have already shared with Io over the past five years gives us great confidence in their ability not only to maintain the outstanding success of Hitman but also to develop new titles of unique IP. In addition, their market-leading technology will be a key element in the Group's transition to next-generation platforms."
"Eidos is an ideal partner for Io, with an inspired and successful management team who share a similar production and development ethos to our own," added Janos Flosser, managing director of Io Interactive. "We are delighted to take our existing relationship to the next stage. We will look to continue producing successful franchises, such as Hitman, and help to define a winning technology platform, which has the potential to be more widely used across the Eidos studios."