q1 2007 may 16, 2007 - funcomcdn.funcom.com/investor/2007/2007 1q 070516-q1-presentation.pdf ·...
TRANSCRIPT
Q1 2007May 16, 2007
2
Agenda
1. Company highlights
2. Project Status
3. Financials
3
Key financial summary, Q1 2007
Revenue• Revenues slightly declining, as anticipated• Relatively stable revenues from Anarchy Online and Plutolife• Revenues expected to decline slightly until launch of Age of
Conan
Earnings• Negative EBIT, as anticipated, due to increase in sales and
marketing activities and other supporting costs related to Ageof Conan
Balance• Cash balance of TUSD 33,201 as of March 31, 2007 and low
interest bearing debt
1,793
-222
1,848-630592
Q1,2007 Q1,2006Revenue
EBITEAT
TUSD
- 1,213
4
Highlights in Q1 2007
• More than 100,000 gamers signed up for Funcom’s Massively Multiplayer OnlineGame (MMO) Age of Conan`s external Beta test over the Easter holiday
• In January the launch of Age of Conan was pushed to October 30, 2007
• Age of Conan received broad press coverage and favorable reviews in relation tothe GDC and the CES conferences in the US and in the ‘Games for Windows’events during Q1 and early Q2.
• Funcom signed a hosting and managed services agreement with IPsoft for Age ofConan with hosting centers being set up in New York and Amsterdam.
• Funcom officially announced its next MMO, The Secret World, previously known byits working title The World Online.
• External stress testing of Age of Conan started during April
• Burning Crusade (WOW), Vanguard and Lord of the Rings Online launched
5
Agenda
1. Company highlights
2. Project Status
3. Financials
6
Anarchy Online and Dreamfall
• Online distribution• “Game of the Year” edition to be published in
the US• Episodic content to be developed with support
from Norwegian Film Fund
• Focus on providing on-going content updates• Testing new business models, in-game
advertising and other• Profitable game• Closing in on 6 year anniversary• Over 1 million USD generated from in-game
advertising alone
7
Age of Conan – ProductionStatus and progress
• Focusing on finishing content for game• Continuous iterations and enhancements of
combat system• Optimizing client performance
Age of Conandevelopment
• Ongoing stress tests. Positive data so far• Focus-testing of key systems like combat and
character development• Press feedback• Testing of technology. No major issue identified so far
Age of ConanBeta status
• Managed hosting and infrastructure managementagreement for Age of Conan signed with IPsoft
• IPsoft is a world class outsourced network- andsystems infrastructure support company
• IPsoft will host and operate the server parks inNew York and Amsterdam
Age of Conantechnical set up
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Age of Conan – Key focus areas
Combat system • Internal focus testing• External focus testing• Testing with press• Beta testing
Fun factor
Technical issues
• Internal focus testing• External focus testing• Testing with press• Beta testing
• Stress testing• External evaluation and quality confirmations• Iterative testing up until launch
Focus area: Process:
9
Competitive landscape
• Burning Crusade (WOW) launched in January - breakingall records of sell-in and sell-through for MMO-games
• Vanguard launched in January and received a mixedreception
• Lord of the Rings launched in April and has receivedpositive initial feedback
• Warhammer Online delayed until ‘Early 2008’
• Lord of the Rings to be launched in Asian markets during2007
10
Age of Conan in-game movie
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The Secret World – Viral campaign details
• Unique online viral campaign
• Letter sent to 100 key gaming people
• Partnerships with key media
• Six online sites launched
12
The Secret World – Dark Days Are Coming
• Solving internet clues led to final teaser site
• Cities of Shanghai, London and N.Y., depending on IP-address
13
The Secret World – The Secret Forums
• Viral campaign continued on forums
• Most popular thread viewed over 40.000 times
• Forum link
14
The Secret World – Press Release Announcement
• Wide coverage and great press feedback inEurope and USA
• Game, name and setting is nowestablished...the world’s firstcontemporary MMO
• New Funcom IP with unique viralopportunities.
15
Agenda
1. Company highlights
2. Project Status
3. Financials
16
Profit and loss account
PROFIT AND LOSS ACCOUNT Full Year
(Figures in TUSD) 2007 2006 2006
Revenues, PC/Console 1,194 1,287 8,492
Revenues, Mobile 599 561 2,330
Total Operating Revenues 1,793 1,848 10,822
Cost of sales -42
Operating expenses -2,619 -2,318 -9,818
Depreciation, amortization and write down -387 -160 -4,182
Total operating expenses -3,006 -2,478 -14,042
Earnings Before Interest and Tax ("EBIT") -1,213 -630 -3,220
Net financial items 909 1,227 3,820
Earnings Before Tax ("EBT") -303 597 600
Taxes 81 -6 2,636
Earnings After Tax ("EAT") -222 591 3,236
Attributable to minority interest -19 -21 -111
Attributable to shareholders of Funcom N.V. -204 612 3,347
Earnings per share (USD) 0.00 0.01 0.07
Earnings per share fully diluted (USD) 0.00 0.01 0.07
Average number of shares (1000) 47,745 44,606 46,969
Average number of shares fully diluted (1000) 49,995 45,856 48,306
First Quarter
17
Balance sheet
BALANCE SHEET Full Year
(Figures in TUSD) 2007 2006 2006
ASSETS
Deferred tax asset 2,661 2,538
Other intangible assets 22,850 14,718 19,698
Tangible fixed assets 1,157 618 1,028
Long-term receivables 423
Trade debtors 900 862 1,239
Prepayments and other receivables 1,939 890 1,612
Cash and cash equivalents 33,201 44,194 37,423
Total assets 63,131 61,282 63,538
EQUITY AND LIABILITIES
Paid in capital 94,492 94,124 94,442
Other reserves -35,423 -38,149 -35,325
Equity attributable to minority interest 202 271 196
Long-term liabilities
Short-term liabilities 3,860 5,036 4,225
Total equity and liabilities 63,131 61,282 63,538
'31-Mar
18
Interim segment results
INTERIM SEGMENT RESULTS Q1 Q2 Q3 Q4 Q1
(Figures in TUSD) 2006 2006 2006 2006 2007
Revenues, PC/Console 1,287 4,050 1,600 1,555 1,194
Revenues, Mobile 561 561 617 591 599
Total operating revenues 1,848 4,611 2,217 2,146 1,793
Sales growth quarter by quarter (%) -8.8 % 149.6 % -51.9 % -3.2 % -16.4 %
EBIT PC/Console -566 -1,133 -299 -752 -1,086
EBIT Mobile -64 -88 -54 -264 -127
EBIT Total -630 -1,221 -353 -1,017 -1,213
INTERIM SEGMENT RESULTS Q1 Q2 Q3 Q4 Q1
(Figures in TUSD) 2006 2006 2006 2006 2007
Revenues, PC/Console 1,287 4,050 1,600 1,555 1,194
Revenues, Mobile 561 561 617 591 599
Total operating revenues 1,848 4,611 2,217 2,146 1,793
Sales growth quarter by quarter (%) -8.8 % 149.6 % -51.9 % -3.2 % -16.4 %
EBIT PC/Console -566 -1,133 -299 -752 -1,086
EBIT Mobile -64 -88 -54 -264 -127
EBIT Total -630 -1,221 -353 -1,017 -1,213