Funcom's Second Quarter Financials Show Decrease In Revenues, Increase In Equity, More Games In Development
Funcom released its second quarter financial report last Friday, revealing that revenues had dropped whereas equity had increased. Second quarter revenues are $1.718 million, down from first quarter's $2.654 million "following a gradual and expected decrease in sales from the current Live Games." The company's total equity is now $2.389 million, up from first quarter's -$9.953 million. According to the report, "the increase was mainly due to the successful completion of a private placement with net proceeds of USD 6,011 thousand, and the partial conversion of the convertible loan into shares for a total amount of USD 7,700 thousand."
The report also reveals that there are several games that Funcom is currently developing several unannounced games. There is "one 'smaller' game based on 'Conan Exiles."
An interesting note is that Funcom's MMOs are reportedly doing well. The exact quote from the report is as follows.
Overall, Funcom’s large scale MMOs continue to generate a positive net contribution to the business and investment levels are constantly reviewed and aligned with expected revenue to ensure that they will continue to contribute positively to the Company in the future. For all our games the Company will continue to tweak and optimize the shop, hip offer and entry cost.
You can find more information about Funcom's current financial state—and some fancy charts—here.
Matt's Take:
Funcom's future seemed uncertain for a while, but their move to a new business strategy in which they work on multiple "smaller" titles seems to be one that is working out for them.
