French publisher and developer Infogrames has released its half-yearly financial report, showing a marked decline of 52 per cent in sales compared to the same period in 2004.
The company's Q2 results, which were reported previously, showed a revenue decline of almost EURO 30 million compared with the same quarter a year ago. Six month figures show ordinary business revenue of EURO 125.7 million, significantly lower than the 2004 figure, which stood at EURO 263.5 million.
Despite the damaging sales drop, which Infogrames has again attributed to a software release strategy that is heavily focused on the fourth quarter, the company has managed to reduce its operating losses. For the period ending 30th September, operating losses were posted at EURO 16.7 million, down from EURO 26.1 million at the start of the fiscal year.
Net income is also improved, with a loss of EURO 10.1 million compared to last year's EURO 36.3 million. However, a significant gain was made from the sale of digital rights back to Hasbro, providing EURO 36.6 million and offsetting what could have been far more damaging losses.
Infogrames CEO, Bruno Bonnell, commented: "The Groupâs focus in recent months has been to reduce expenses while adding more flexibility to our business in anticipation of expected changes in the market. In spite of a substantial decline in revenue last year, we have kept costs under control and continue to make investments in R&D."
"The Group has elected to release most of its major games during the second half of the year, when the largest share of its revenue from ordinary business will be generated. Under our current business plan, our top priority remains the profitability of our operations."
Infogrames has more than twenty games scheduled for release in the third and fourth quarter of 2005, sales of which should aid the company in generating substantially more positive results for the full 2005-2006 fiscal year.
In related news, the publisher continues to strengthen its management team with the appointment of Thierry Dettloff, who will serve as chief financial officer. Dettloff most recently served as an associate of Deloitte France, coordinating due diligence procedures for mergers, acquisitions and financial restructuring services.
In his new role at Infogrames, he will oversee the group's financial reporting, treasury, internal audits and controls and investor relations. His appointment follows the recent addition of Evence-Charles CoppeÃ® and Jean-Michel Perbet as deputy chief operating officer.