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Playlogic records losses of $3.3 million for first half of 2009

Company attributes shift of focus from PC to console as partly to blame

Playlogic Entertainment has reported losses of USD 3.3 million in its financial results for the first six months of 2009.

This net loss compares to a profit of USD 1 million made during the same period in 2008.

Meanwhile, net revenue for the publisher was recorded as USD 4.7 million, which was a 43 per cent fall on 2008's revenue of USD 8.3 million. For the three months ending June 30 2009, net revenue was USD 3.5 million compared to USD 4.3 million for the same period in 2008.

Part of this revenue drop Playlogic attributes to a quieter release schedule this year. In total, it has shipped six new titles, compared to seven in 2008, which included one of the publisher's best selling titles to date, Obscure II.

A decrease in gross profit - down from USD 4.4 million to USD 1.7 million - Playlogic ascribes to a change in its portfolio. In previous years the company has released most of its games on PC, while in 2009 its main platforms are Wii, DS, PSP, Xbox 360 and PlayStation 3. Costs of goods in 2009 have therefore included platform holder licence fees and increased marketing costs, said the company.

Its operating costs were also up, with a loss of USD 2.7 million for the first half of the year recorded, compared to a profit of USD 1.2 million the year prior. Earnings per share for the first six months showed a loss of USD 0.07 compared with a profit of USD 0.03 in the first six months of 2008.

Despite reduced profits for the year so far, Playlogic anticipates releases in the 2nd half of 2009 - which are to include Obscure: The Aftermath (PSP), Aliens in the Attic and Fairytale Fights - will help it to deliver a net revenue in the range of USD 30 - 40 million for the full year. It also expects its new US office, situated in Minnesota, which became operational during the second quarter of this year, to "substantially increase" its global sales.

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