f13.net forums - Funcom Q3 report

http://www.newsweb.no/newsweb/atmnt/081112_Funcom_Q308_presentation_final.pdf?id=60510

Quote

Forward looking statements
This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking. You should not place undue reliance on these forward-looking statements for many reasons.
These forward-looking statements reflect current views with respect to future events and are by their nature subject to significant risk and uncertainties because they relates to events and depend on circumstances that will occur in future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity or performance will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this presentation, either to conform them to actual results or to changes in our expectations.

Key financial summary, Q3 2008
Revenue
•
Revenues were within the previously guided range of 16.000 to 20.000 TUSD
•
Increase in Funcom revenues is mainly due to subscription revenues from the Age of Conangame.

(charts that can't be copypasted)

How does the financial crisis impact Funcom?
Business effects
•
The gaming industry is traditionally not very affected by major changes in the economy.
•
The retail based parts of the gaming industry will be affected to some extent. Playing online games is still a ”low budget” form of entertainment in a cost per hour perspective and should be less affected.
•
Fewer competitors will get funding in the short to medium term
•
The strong consolidation in the industry may loose some momentum as a result of the financial crises.
Financial effects
•
Cash 􀃆Funcom does not need any external funding in 2009. Most of Funcoms cash and cash equivalents are being held in NOK
•
Currency 􀃆NOK depreciation is positive for EBITDA, but will have a negative accounting effect in P&L as a large protion of the Company’s cash is being held in NOK as a cost hedge.
•
Steady revenues from Anarchy Online.
•
Excluding Plutolife revenues.
Earnings
•
EBITDA and EBIT reflects the scalability of the business model for MMOs such as Age of Conan.
•
EAT is impacted by exchange rate effects.
Balance
•
Cash balance of TUSD 34.779 as of September 30, 2008 and low interest bearing debt. Payment from Eidos for box revenues in Q208 has been received after Q308.
Guidance, Q4 2008
•
Revenues in Q4 2008 are expected to be between TUSD 8.000 and TUSD 10.000.
•
Will depend on the key success factors; customer acquisition and retention rate.

MMO success criteria and status Age of Conan
Sales, marketing and operations:
Develop game concept and positioning that has global reach ✔
Develop world class marketing material for game and concept ✔
Build a large, global community of gamers before launch ✔
Execute a successful global marketing campaign ✔
World class distribution ✔
Handle network, server and billing issues for launch volumes ✔
Game:
Appealing game world (gfx, story, quests, characters etc) ✔
Compelling first 5 minutes of game play ✔
Compelling first 20 hours of game play ✔
An RPG rule set that keeps the majority of players engaged for hundreds of hours (missing check here!)
Sufficient content for hundreds of hours of game play ✔

I'll stop the copypasting because it's full of of images and charts, but you get the picture. Honestly, it's so easy to read it that I suggest you all to follow the link and have some fun with it. Somehow, I love it.