Publisher Playlogic Posts $20 Million Loss For 2009, Restructures Debt

The Dutch independent publisher lost $20 million on sales of $11.1 million, with the bulk of revenue coming from just two games and a contract with Sony Computer Entertainment Europe. In a statement, the company described how the sales of Fairytale Fights, which was released in North America and Europe late last year, helped raise yearly revenue 23 percent -- from $9 million in 2008 to $11.1 million in 2009 -- but marketing and development of the title pushed numbers into the red. Playlogic consequently saw losses of over $20 million in 2009 despite increased revenues -- compared to losses of $9.5 million in the prior year. According to its SEC filing, 74 percent of its revenue was derived from Fairytale Fights and Xbox 360 shooter Infernal: Hell's Vengeance, as well as a development contract with Sony Computer Entertainment Europe. Infernal has a dismal Metacritic rating of just 35. The company also restructured its debt during 2009, in an agreement with both shareholders and debt holders. $21 million in debt was restructured, which allowed it to avoid share dilution, it says, as well as resolve a $2.3 million negative equity position with shareholders it reported in its 2008 results. Despite this, the company's SEC filing warns that Playlogic is "behind on payments to some of our vendors" and that legal proceedings have commenced in some cases. The filing notes that "a significant part of our accounts payable balance is overdue." In more positive news, the company states that it has multiple projects under development at the internal studio Playlogic Game Factory, which produced Fairytale Fights, and that development for these titles is financially sound -- for the time being.