Phil Elliott
10:45 (BST)
13/05/2008
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Funcom posts cautious Q1 figures
Funcom has released its financial results for the first fiscal quarter of 2008, with an earnings before interest and tax loss of USD 3.13 million - compared to a loss of USD 1.21 million the previous year - principally down to the increased costs of marketing in the build-up to the May 20 launch of flagship MMO title Age of Conan: Hyborian Adventures.
Meanwhile the company's earnings after tax increased from a loss of USD 222,000 last year to a profit of USD 919,000 this year, put down mostly to currency fluctuations and tax income.
The company reported a cash balance of USD 47 million as of the end of March, 2008, a war chest that will help it to take advantage of a relatively clear launch window, with both primary competitors World of Warcraft: Wrath of the Lich King and Warhammer Online releasing later in the year.
But in a statement Funcom did note some potential risks with the launch of Age of Conan, particularly the stability of servers during the launch period, and the importance of maintaining subscriber numbers in the following months.
Finally the company stated that revenues from its other games, Anarchy Online and Plutolife, were steady.
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