Paul Loughrey
11:05 (BST)
19/06/2006
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Infogrames suffers heavy Q4, year end losses
Positive EU, Asian operations fail to offset US debts
Infogrames, the parent company of struggling US publisher Atari, has revealed its year-end financial results, posting a net loss of EURO 149.8 million despite positive earnings in European and Asian markets.
Following the recent announcement of Atari's financial statement, which revealed a massive USD 67 million loss for the year, Infogrames noted a negative impact of EURO 200.8 million to the group's operating income - including a EURO 125.4 write-down of goodwill as a result of poor performance of key titles and continued negative operations in the US.
The French publisher's European and Asian business generated an operating profit of EURO 5 million and EURO 1.4 million respectively, but Atari's financial situation continues to cripple the firm. Operating loss increased to EURO 154.1 million, compared to a loss of EURO 33.9 million the previous year.
The company has spent EURO 13.2 million in restructuring expenses, following Atari's decision in February to cut 20 per cent of its workforce in an effort to redress the financial deficit and restore shareholder confidence in the publisher. The restructuring efforts continue, and it is likely that further significant losses will be incurred.
In spite of this, Infogrames has committed to several current and next-gen releases over the coming year, including Test Drive Unlimited, Dungeons & Dragons, Alone in the Dark, and Luc Besson's Arthur and the Minimoys.
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