Playlogic Posts Increased Revenues, Q1 Loss

Amsterdam-based game publisher Playlogic Entertainment (Age Of Pirates) has released its results for the first quarter ended March 31, 2006, indicating an increase in revenue as it starts to expand operations in the U.S. and Europe, but an overall loss as it ramps up costs. The software publisher, which launched in the U.S. in July 2005 as part of an expansion plan, reported a 440 percent increase in net revenue to $2.7 million, up from the modest $0.5 million posted during the same period in 2005. The revenues came from new video game titles released for the PlayStation 2, Xbox and PC in both the US (34 percent) and Europe (66 percent). However, Playlogic indicated that the company has continued to make investments in order to ramp up its product development slate, and as a result the company posted a net loss of $1.2 million for the quarter due to expenses relating to higher selling, marketing, general and administrative activities. This reported loss is more than double the previous year's $0.56 million. Playlogic also indicated that it plans to substantially increase its net revenues for the remainder of the year by focusing on its remaining releases, which include PC titles Age of Pirates: Caribbean Tales, Age of Pirates: Captain Blood, and Ancient Wars: Sparta, as well as Infernal, which in development for the Xbox 360 as well as the PC.