Matrix boosts Q1 operating profits for Atari

Publisher Atari has announced its results for the first quarter of financial 2003/04, revealing a boost in sales and operating profit provided by the successful launch of movie tie-in Enter The Matrix.

Operating profit for the quarter, ended June 30, rose to â'¬31.4 million compared with â'¬5.5 million in the same quarter last year, a figure attributed mostly to the success of the Matrix title, as well as the ongoing success of the Dragonball Z franchise.

Assuming constant exchange rates, sales were up 8.5 per cent to â'¬256.8 million - but the weakness of the US dollar on the currency markets wiped out this rise, and actually saw turnover drop from last years â'¬236.6 million to â'¬222.4 million this year.

For the full year, Atari hopes to match the growth rate of the market as a whole - which it predicts as 15 per cent in Europe, and 10 per cent in the USA.

The publisher's debt situation has also improved, with a positive cash flow enabling the slashing of â'¬125 million from its net debts at the end of June. Significant debts remain, however, with â'¬125 million to be paid back in convertible bonds in 2004, and â'¬222 million in bonds in 2005, but Atari is now confident of its ability to meet those commitments.

"We have demonstrated our capacity to generate cash and we are now in a much better position in negotiations to address the market's main concern, the debt," commented CEO Bruno Bonnell. A number of refinancing options have been proposed for the company, ranging from issuing new convertible bonds to forming strategic partnerships.