Infogrames Posts Fiscal Losses
Just about everyone has been reporting their financial revenue for 2006, and French publisher Infogrames is the latest to announce their earnings results for the first nine months of the fiscal '06/'07 year. It appears regular business revenue hit € 221.9 million ($289 million), which is a significant drop from the € 291.9 million ($380.1 million) the company posted for the same period the year before.
Infogrames' European operations accounted for 58% of overall revenue (higher than 2005's 49%), which means the company's impact in the North American market was lessened. Only about 33% of their revenue came from North American subsidiaries, which is 9% lower than the same period in 2005. Asian sales stayed pretty much the same, coming in at an Infogrames-typical 9%.
As for the overall loss in that nine-month period, the publisher blames the aforementioned decline in North American subsidiary operation, and they just recently finished a major U.S. restructuring. The cost of such an endeavor likely contributed to the losses as well. In regards to next-gen performance, 32% of the company's total sales came from next-gen console and handheld software. PS2 sales accounted for 38%, and PC sales was responsible for the remaining 25%.
So in the end, total third-quarter sales hit € 116.4 million ($151.6 million), which is markedly lower than the € 168.8 million ($219.8 million) Infogrames enjoyed in 2005. But with the North American operations bill taken care of, and more projects in the hopper, the publisher should bounce back for the next fiscal year.
2/1/2007 Ben Dutka