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Infogrames reports massive revenue losses, license sales

Following Atari's Q2 financial results, which showed revenue losses of USD 25.2 million, Infogrames has posted similarly concerning financial results, but remains confident in its long term sales strategies.

Both Atari and parent company Infogrames have posted weak results for the second quarter, with Atari reporting losses of USD 25.2 million, while Infogrames has announced a major decline in revenues - but remains confident in its long term sales strategies.

Infogrames posted second quarter revenues for its ordinary business of 70.2 million Euro, a drop of almost 30 million Euro from the 99.8 million Euro figure in the same period last year. The company declared that the figures reflect a limited number of releases during the period, and asserts that its sales are "consistent with the Group's publishing strategy and normal seasonal market fluctuations."

The company's sales were bolstered by the success of adventure title, Fahrenheit, which has sold well across the world, though its position is much stronger in Europe than in the US at present.

Revenue for the first half of the fiscal year, which totalled 125.7 million Euro, was largely generated in Europe, which accounted for 50 percent of the overall sales. America fared less well, with 38 percent, while Asian-Pacific sales increased to 12 percent of the overall figure. US sales were down from 51 percent in the same period last year.

Under French company regulations, Infogrames does not have to publish income figures in this report, only revenues - but subsidiary Atari does, and showed losses of $25.2 million compared with $16.9 million last year, while the firm's revenues slid from $68 million to $38.4 million.

In its financial statement, Infogrames declared a boost of 52.7 million Euro from the sale of digital gaming rights back to Hasbro Interactive, which it hopes will "have a considerable impact on consolidated net income."

The publishing schedule is also heavily geared towards the latter part of the year, with new titles in the Driver series headlining a varied product line-up. Strong sales throughout the third and fourth quarter are expected, which the company hopes will improve results for the full fiscal period.

Author

Paul Loughrey

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