Empire Posts Loss, Anticipates Big Games

Empire Interactive, a UK-based developer and publisher, has released its financial results for the first half of 2005, a period ending June 30, 2005. Revenue for the period was 6.9 million pounds ($12.17 million USD), a drop from last year's first-half revenue of 12.1 million pounds ($21.34 million USD). The company's operating losses were also larger than the same period in 2004, with 3.9 million pounds ($6.88 million USD) lost compared to 2004's 849 thousand pounds ($1.4 million USD). The stated reasons for the lower earnings were a greater shift toward releasing more product in the second half of the year compared to years past, to take better advantage of holiday sales. "The second half, with Christmas trading, is more than ever the most important part of the year for the Group," said Empire CEO Ian Higgins. "As planned, the Group successfully completed Big Mutha Truckers 2 in the first half. Other major titles, such as FlatOut 2, Starship Troopers and Taito Legends were always scheduled for the second half." In the second half of the year, Empire plans to release Starship Troopers and Jacked, a motorcycle racing game, as well as a new volume of Taito Legends in Europe. Even further ahead is the release of FlatOut 2 in the first half of 2006, which is expected to be one of Empire's biggest sellers. "The launch of FlatOut in North America has gone very well and created a strong franchise that we can successfully exploit," said Higgins. "The Group continues to manage costs tightly and the outlook remains positive, but dependent on the successful completion and launch of new titles and the important Christmas market."