Losses widen at Playlogic
But net revenues for Q3 were up 82% over the same period last year
Playlogic, the publisher headquartered in New York, US and Amsterdam, The Netherlands has today reported its financial results for the three months to the end of September 2009 noting that net losses widened slightly from USD 3 million to USD 3.2 million.
Additionally for the first nine months of the year losses increased from USD 2 million to USD 6.7 million, while gross profit fell from USD 4.6 million to USD 1.7 million in the same time frame.
But while revenues for the nine months was down, it was up in the third quarter from USD 1.1 million to USD 2 million - a rise of 82 per cent.
"The decrease in gross profit is due to the shift in our strategy and subsequent adjustments to our portfolio. In the previous year a large percentage of products were published on PC, with fewer SKUs published on console," read the company's financial statement.
"This current year has seen our focus shift onto next-gen consoles (PlayStation 3, Xbox 360) as well as other console platforms including Nintendo DS, DSi, Wii and PlayStation Portable.
"The associated increase in cost of goods for the first 9 months of 2009 includes license fees for the console platform. For the third quarter of 2009 gross profit showed USD 33,000 compared with USD 264,000 in the third quarter of 2008."
Titles released in that time frame included Age of Pirates II: City of Abandoned Ships, Vertigo, Pool Hall Pro, Sudoku Ball Detective, Infernal: Hells Vengeance, Aliens in the Attic and Obscure: The Aftermath.
The company also noted an increase in marketing costs as a result of attending a host of consumer events throughout the year.
Looking ahead Playlogic revealed unit shipments of over 300,000 for its latest release, Fairytale Fights, and while some release dates have slipped in order to deliver "quality product to the right consumer," it expects revenue for the full year to sit in the USD 12.5-17.5 million range - compared to USD 9 million last year.