Playlogic Sees Sales Up, But Losses Up

Officials from Dutch publisher Playlogic have announced details of the company’s financial results for the full year ended December 31st, 2006. During this period revenues rose by 176 percent, following new distribution deals for its products via Atari. Sales increased from $1.8 million in 2005 to $5 million this year, thanks to the greater availability worldwide of titles such as Age of Pirates: Caribbean Tales. Gross profits rose by 71 percent, from $0.7 million to $1.2 million, against a production cost rise from $1.0 million to $3.8 million. Despite these positive results the company still registered an operating loss of $10.3 million - an increase from a figure of $9.3 million a year earlier, thanks to a one-time impairment on long term assets of $1.9 million. Net loss for the company also increased from $9.7 million in 2005 to $12.5 million. Looking forward, the company is currently finalizing a private placement of $10 million during the current second quarter, incorporating both the issuance of new shares and a cash loan. The publisher’s in-house studio The Game Factory has also renewed its first party development agreement with Playlogic and Sony Computer Entertainment Europe. On top of that, the studio has signed a new worldwide licensing agreement with Nintendo, making Playlogic the latest official Wii publisher. Playlogic currently has more than ten titles scheduled for release during 2007 and the first quarter of 2008, including: Infernal (PC), Ancient Wars: Sparta (PC), Xyanide Resurrection (PSP and PS2), Obscure II (PC, PS2 and Wii) and Age of Pirates: Captain Blood (PC and 360). Willem M. Smit, president and CEO of Playlogic, said: "We expect substantial growth of revenues this year, which will vary in upcoming quarters in accordance with our release schedule. Playlogic has an excellent line-up of titles as well as various new licensing agreements that expand our portfolio of gaming platforms and will increase availability."