Infogrames net loss halved, shares initially jump 5%
Year of restructuring allows for the implementation of new strategy, says Gardner
Infogrames has reported its full year financial results for the year ending March 31, 2008, with the main headline that the company has halved its losses on the previous year - although this is now the ninth full year of losses in a row.
Net income loss was reduced from EUR 103.1 million (USD 159.9 million) last year to EUR 51.1 million (USD 79.2 million) this year, while operating loss improved from EUR 61.8 million (USD 95.8 million) to EUR 45.5 million (USD 70.6 million) in the same period.
Revenues for the year were down slightly from EUR 305.3 million (USD 473.5 million) to EUR 209.7 million (USD 325.2 million), although the company noted that it missed out on revenue from key title Alone in the Dark due to the game's delay.
The company has undergone a major restructure in the past six months, with the appointment of David Gardner as CEO, and Phil Harrison as president, as well as the merger with Atari Inc in the US.
"Last year has been a difficult but crucial period for the Group. During that period, Infogrames has carried out an intensive restructuring of its capital base, leading to an improved financial situation and has initiated an important reorganization of its global distribution network and management structures," said Gardner.
"In the months ahead, we will capitalize on the value of the Atari brand and implement the new strategy, with the clear objective of refocusing on profitability while ensuring growth."
The company has forecast a 12-18 per cent growth in net revenues for fiscal 2009, and is confident of becoming profitable at the current operating income level within 18 months on an annual basis.
The company's share price initially jumped by over 5 per cent on the news to EUR 12.48 (USD 19.35), but since dropped to EUR 12 (USD 18.61) at the time of publishing.