Tom Bramwell
10:54 (BST)
01/02/2007
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Infogrames blames restructuring for huge sales drop
Atari's parent company has blamed restructuring efforts for poor sales last year
French publisher Infogrames has announced a 24 percent drop in nine-month sales, blaming ongoing US restructuring for the downturn.
Sales between April and December 2006 were GBP 147 million (EUR 222m) compared to GBP 193m (EUR 292m) during the same period of 2005.
"The reduction in revenues seen in the first nine months, and particularly in the third quarter, stems mainly from a significant drop in activity in the group's American operations, following a restructuring plan of which the priority is to return the group to operating breakeven," the company said in a statement.
Infogrames, which owns Atari, is aiming to reduce massive debts accumulated through acquisitions in the last few years. The company is due to announce third quarter results on February 8.
Its product line-up for calendar-2007 includes games based on popular children's properties including Tamagotchi, Arthur and the Invisibles and Naruto, along with more mature products like Godzilla: Unleashed and Sony-console versions of critically acclaimed racing title Test Drive Unlimited.
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