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Thread: Funcom Q2 report - revenues decrease

  1. #91

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    Quote Originally Posted by Rhyxx View Post
    Ive often wondered if the breakdown of Funcoms financials is also available ie: specifics of AoC/TSW revenue/costs etc.
    I know that level of financial transparency is the standard for some countries & that all companies have to "declare" so to speak, but just wondered if that level of detail is available from Funcom?

    Surely with them on the lookout for potential investors those details should be readily available.

    Your far more clued up on this than I am Rath so was wondering if you had any idea of where to start digging for that info?
    Tbh I am not sure to what extent FC are required to publish detailed information. Since accounting rules primarily are aimed at shareholders (and tax authorities), I'd be surprised if they were required to publish data on individual products.

    For some time now, FC have been releasing segment data for "large scale MMOs" and "free-to-play MMOs". The FTP segment mainly included revenues from Bloodline Champions and from the infamous fashion game - so these days, there are hardly revenues in that segment. For people who are interested in a breakdown between AoC and TSW, this obviously isn't helpful, as both are aggregated in the "large scale MMO" segment.

    So if we want to form an opinion on AoC and TSW, we are basically stuck with the very limited information on the "carrying value" of the two games in FC's annual reports. I'm no accountant, but if I understand correctly, immaterial assets such as the goodwill associated with a MMO are primarily recorded in a company's account based on their cost. Then, the company has to periodically check whether the expected revenues from the game are sufficient to cover that cost. If they are not sufficient to cover cost, the company has to record an impairment in the value of the goodwill. If I'm not mistaken, the company may also appreciate the value of the goodwill, if expected revenues exceed historical cost. However, European accounting rules seem to be rather conservative in this regard, so management has to be very convinced of the likelihood of revenues exceeding cost.

    Information on this is included in FC's annual reports under the heading "calculation of recoverable amounts" (2012: p. 64 et seqq, 2013: p. 62 et seqq; 2014: p. 62 et seqq). However, I have to admit some of the stuff under that heading is serious accountant's jargon, which I am unable to follow.
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  2. #92

    Default Q3 Report

    New Report is out.


    http://cdn.funcom.com/investor/2015/...Q15_Report.pdf


    Interesting, but not surprising the direction they are moving towards. Still minimal development for Aoc.
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  3. #93

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    Quote Originally Posted by Halfdead View Post
    New Report is out.


    http://cdn.funcom.com/investor/2015/...Q15_Report.pdf


    Interesting, but not surprising the direction they are moving towards. Still minimal development for Aoc.
    Thanks for that link

    Sad to see it actually in writing but:-

    As previously communicated in the 2Q report, the
    Company decided to shift strategy, focusing on
    different types of products and production cycles.
    This new strategy consists of:

    o Leveraging and growing the internal
    Intellectual Properties such as Anarchy
    Online, The Longest Journey and The
    Secret World.

    Sorry for the formatting, direct copy from the pdf.

    Not a doom & gloom post as its to be expected given Funcoms current financial situation but some real clarification on it would nice.

  4. #94

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    Updated my journal:
    http://1drv.ms/1LzXI4L

    Quote Originally Posted by Rhyxx View Post
    Sad to see it actually in writing but:-

    As previously communicated in the 2Q report, the Company decided to shift strategy, focusing on different types of products and production cycles.
    This new strategy consists of:

    o Leveraging and growing the internal Intellectual Properties such as Anarchy Online, The Longest Journey and The Secret World.
    See Slith's posts here (and his twitter exchange with Joel Bylos):
    https://forums.ageofconan.com/showth...me-be-possible

    Not sure what to make of the fact that AoC is not mentioned in the report...
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  5. #95

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    Quote Originally Posted by Rathothis View Post
    Updated my journal:
    http://1drv.ms/1LzXI4L



    See Slith's posts here (and his twitter exchange with Joel Bylos):
    https://forums.ageofconan.com/showth...me-be-possible

    Not sure what to make of the fact that AoC is not mentioned in the report...
    Yeah we can only hope that something along those lines happens for AoC but considering it states they are concentrating solely on their own IP's it does make me hesitant.
    We all know the situation isnt the best but again all I would like is some real transparency, If Funcom IP's are their current focus where is the income from AoC being directed & if it isnt being used to directly either develop or support AoC then they should make some form of statement about their intentions when the Conan IP comes up for renewal.

  6. #96

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    Quote Originally Posted by Rathothis View Post
    Updated my journal:
    http://1drv.ms/1LzXI4L



    See Slith's posts here (and his twitter exchange with Joel Bylos):
    https://forums.ageofconan.com/showth...me-be-possible

    Not sure what to make of the fact that AoC is not mentioned in the report...
    They do mention AoC, and also claim that they will continue developing and supporting the current MMORPGs for as long as they are profitable.

  7. #97

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    Quote Originally Posted by ErikT View Post
    They do mention AoC, and also claim that they will continue developing and supporting the current MMORPGs for as long as they are profitable.
    Of course AoC is mentioned in the report - but Rhyxx's post was specially about the section on Funcom's strategy going forward. They do mention "our own or 3rd party IPs" there, but then only list AO, TSW, and The Longest Journey.

    That said, this doesn't necessarily rule out that they are working on a single player game based on the Conan IP (as suspected by Slith). Also, even if they were working on a Conan IP single player game, there's no way of knowing whether this would have any impact on AoC.
    Last edited by Rathothis; 19th November 2015 at 11:47.
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  8. #98

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    Added most recent revenue and cost data from quarterlies:
    https://goo.gl/jhpa6W

    Also, based on the 2015 annual report, AoC's carrying amount was USD 577k (compared to USD 344k in 2014). Once again, Funcom's impairment test resulted in a value higher than the carrying amount (this time by USD 496k). Still profitable in spite of the lack of development...
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  9. #99

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    Guess this can go here:

    http://massivelyop.com/2016/06/14/fu...-in-september/

    Sorry to see it but hopefully it's better in the long run.

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