Funcom Q2 report - revenues decrease

[Slith]

check it out

http://massively.joystiq.com/2014/08...ecrease-in-q2/

http://cdn.funcom.com/investor/2014/...Q14_report.pdf

The three main titles of Funcom live games portfolio
(The Secret World, Age of Conan and Anarchy
Online) remain cash flow positive.

During 2Q the Company initiated several marketing
campaigns and other activities to increase the
activity level within the live games – Anarchy
Online, Age of Conan and The Secret World.

Player numbers and revenues from Age of Conan
and Anarchy Online were relatively stable in 2Q14.
· The focus for the development of these games is to
continue adding new features and new content that
extend player engagement time.
· All games in the large-scale MMO segment are
cash flow positive and will remain so in the
foreseeable future.

[Rathothis]

Interesting... they do recognise that AoC is rather stable, while TSW evidently is not.

I've made a habit of collecting their quarterly figures just to show myself what happened to the money I paid for AoC. As you can see below, it's a sad sad tale:

Q2/14: USD 3,190k [TSW Tokyo update]
Q1/14: USD 3,836k
Q4/13: USD 4,270k
Q3/13: USD 5,336k
Q2/13: USD 5,465k
Q1/13: USD 6,338k
Q4/12: USD 7,786k
Q3/12: USD 10,963k [TSW launched]
Q2/12: USD 2,557k

Notes:
* Q2/14: TSW's Tokyo update was launched on June 4th, i.e. rather close to end of the quarter. Still I wouldn't expect a massive number of sales in Q3, as TSW like AoC mostly caters to a small but die-hard fanbase - and most of these fans are likely to purchase very soon after release.
* Q2/12 revenues are likely to include some presales of TSW - so it is not fair to attribute them to AoC in their entirety.

[weretiger302]

Seeing these falling numbers, combined with the need for financing to handle the lego launch, I can see at least one silver lining: In order to raise some quick cash, AoC can bring back the $90 USD 18-month subscrition offer they had at last year's anniversary event. Everyone wins- Funcom gets more cash, and AoC players get a decent deal, and hopefully a reason to sub again, since not much else has been forthcoming.

[cins]

During 2Q the Company initiated several marketing campaigns and other activities...

I'm gonna highlight this part right here. For no reason.

[raist718]

http://www.gamesindustry.biz/article...s-profit-in-q2

[Rathothis]

FC's report for Q3/14 is out:
http://cdn.funcom.com/investor/2014/...Q14_Report.pdf

and here is my updated list of revenue figures:

Q3/14: USD 2,651k
Q2/14: USD 3,190k [TSW Tokyo update]
Q1/14: USD 3,836k
Q4/13: USD 4,270k
Q3/13: USD 5,336k
Q2/13: USD 5,465k
Q1/13: USD 6,338k
Q4/12: USD 7,786k
Q3/12: USD 10,963k [TSW launched]
Q2/12: USD 2,557k


A few notes:

* As I already pointed out in another thread, TSW's book value in FC's most recent annual report (2013) was USD 2,519k, so the additional impairment by USD 1,086k is a rather big thing.
* Operating expenses in Q3/14 were USD 3,119k - that's a decrease of about USD 500k not only in a year-on-year comparison (i.e., compared to Q3/13), but also compared to Q2/14. Not sure whether this indicates that there have been further cuts, but there is at least some support for this theory ("Investment levels for all current Live Games are constantly being aligned with expected revenue to ensure that they deliver a net contribution to the Company").
* Of historical interest: FC's revenues are now where they were prior to TSW...

[Khaletohep]

Did Funcom publish what AoC ist worth in their books alone? We could throw some money together maybe...

[slackjoint]

Did Funcom publish what AoC ist worth in their books alone? We could throw some money together maybe...

And what then ?

[Khaletohep]

Make sure the servers keep running!

[slackjoint]

Even anarchy online servers are still running and have a positive revenue .
There will be new content released for AoC so why do you think the server should be shut down ?