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Atari halves losses to €9.2 million

Sales down as online accounts for almost half of business

Atari has recorded a first half net loss of €9.2 million ($13.6m / £7.8m) for the first half of the financial year, an improvement on the €23.2 million loss ($31.8m / £19.7m) for the same period last year.

Revenues were down from €68.5 million ($94m / £58.3m) to €29.6 million ($40m / £25.2m), with an operating loss of €8.5 million ($11.6m / £7.2m), compared to €19.9 million ($27.3m / £16.9m) in 2009.

Subscriptions from Star Trek Online and Champions Online generated online revenues of €12.9 million compared to €11.1 million, with online sales up significantly from 2.6 per cent of total net revenue to 43.6 per cent in this half.

In contrast, retail sales slumped from €50 million to €16.7 million, or 56.4 per cent of net revenues compared to 97.4 per cent last year.

The publisher launched its new online Atari GO service during the period, as it transitions from a retail to a digital business, and released Haunted House and Blade Kitten on XBLA and PSN.

Atari also lowered its full fiscal year guidance to an expected net loss of €8.5 million for the 2010/2011 year, compared to a loss of €26.9 million last year, blaming a soft retail market and "the increasing competitive environment in the online and digital console segments."

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.