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Funcom Q1 shows positive trend following restructuring

Tuesday, 28th May 2013 23:19 GMT By Brenna Hillier

Age of Conan and The Secret World developer Funcom has seen a significant jump in income since releasing The Secret World, and managed to minimise its losses last quarter thanks to recent, dramatic restructuring.

In its FY2013 first quarter report, the company posted revenues of $63,338,000, a huge jump on the $2,293,000 of the first quarter of Q1 FY2012 which the company credited to the success of converted free to play MMO The Secret World launching in the interim.

The most recent content drop for the MMO – The Last Train to Cairo – was singled out as having a “very good take-up” rate.

Unfortunately, after tax Funcom’s earnings didn’t balance, coming in with a loss of $74,000 – something of an improvement year on year from $6,143,000 though.

Funcom said its major source of revenue was The Secret World and Age of Conan, both in terms of client sales and subscriptions rather than microtransactions.

It also highlighted its recent restructuring as a major source of cost savings, noting that operating costs decreased significantly both quarter on quarter and year on year. It was left with a cash balance of $3,693,000 at the end of March. This is delightful, although the company still has a $16 million debt to pay off. More positive knock on effects of the restructuring are expected to manifest in the second half of the year.

In terms of upcoming games, Funcom said a licensed Lego Minifigure online game being developed in Oslo is on schedule, and both Lego games developed in Montreal have hit milestones recently.

Thanks, Massively.

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2 Comments

  1. TheWulf

    The Secret World sadly couldn’t even hold my attention for very long even as a free thing. It’s a shame, really. The writing is as bad as any other MMO out there (and even cringe-worthily worse in some cases), which makes me wonder what Ragnar was doing. But Ragnar doesn’t seem to have any good stories left in him.

    The Longest Journey was amazing… and that was it. Dreamfall was very… grimdark, ooh~, ooh~ and it failed to recapture anything of what made The Longest Journey a truly unique experience. It might have been playing to the mainstream peanut gallery, maybe, but I’m more inclined to think that Ragnar has just run out of ideas.

    Which is why I didn’t back Dreamfall Chapters.

    This could have been something special, but the focus is on the writing — and with the writing not being great, the only thing left is the subpar combat. And there are many MMOs out there which handle both their content and their combat better.

    #1 2 years ago
  2. eapenster

    I got to differ with thewulfs opinion of the secret world. ( i played dreamfall first and because i liked it . i bought the longest journey and played it. dreamfall had its quirks but it did a great job in sending quite a few valuable messages in the story it was one of those games that shocked me in the end. which is why i backed dreamfall chapters and am excited about it )(the soundtack of dreamfall was great as well)

    I think TSW has a really strong story line that extends beyond the game (as in its good if you are an avid reader of myth and mythology ) . The combat system feels limited at start but it is quite exiting once you get used to it . the emphasis on no one build for everything can be felt in the game once u get to the 3rd zone for the first time. Another good thing is the frequent content patches with extends the story and gameplay in unexpected ways. Me for one is excited for the next few months when the road to Tokyo unravels in tsw.So i went on to buy the grandmaster pack for lifetime subscription. I Hope funcom does well in the future and i expect them to do great things :-)

    In the end this is just my personal opinion . everyone has their own take on things that’s what makes this world interesting

    #2 2 years ago

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