February 23, 2009

Funcom Q4 2008 financial report

Funcom have presented their financial results for the 4th quarter of 2008 in a meeting at Vika Atrium, Munkedamsveien 45 in Oslo this morning. They have also released the report and a nice presentation in .pdf format for the general public.

The main positive points are that the customer retention has been improving in Age of Conan and that the average playtime per subscriber has also increased during the last few months. I think this is largely thanks to Craig Morrison who is doing a great job as the game director for AoC.

There are some negative sides, as well. Funcom's EBIT (Earnings Before Interest and Tax) and EAT (Earnings After Tax) have been negative: -23,396 TUSD and -30,854 TUSD respectively - compare that to Q3 2008 figures of 5.331 TUSD and 2.763 TUSD, which were probably largely boosted by box sales. However, the company's financial position remains strong, with approximately 40 million USD in cash as of December 31, 2008. Quoting Mr. Aas:

Funcom is well equipped to meet the current challenges, and considers the financial resources to be sufficient to develop, complete and launch the MMOs in development.
Let's move on to some more exciting stuff about AoC now. Here's an Age of Conan update road map as shown in the Funcom's presentation. Note, it does not have expansion mentioned in Q4 as the last report did - it's likely we'll have to wait till 2010 for it:


Here's information on the sales focus for Age of Conan, including massive digital download-based free trial marketing campaign in the next 6-9 months:


I am sure you remember the talk about Funcom's next MMO, The Secret World which is set in a twisted version of modern Earth. They have moved forward since Q3 and have more people working on the project, as well as more complete playfields and game features:


And for the desert, let's have some more juicy info on Funcom's finances. This handy table outlines company's most important financial figures from Q4 2007 to Q4 2008. There's no revenue from the mobile division starting with third quarter of 2008 since Funcom sold their Plutolife to a company called Jumbuck Entertainment:


I hope you found this interesting. For more info, visit Funcom's news page for investors, or click here to download the Q4 2008 Report and the Q4 2008 Presentation.

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