SCi Losses Significant, But Beat Expectations

Officials from British publisher SCi have announced the company’s financial results for the nine months to June 30th, with a pre-tax loss of £14 million ($24.7m) being revealed. However, this figure is apparently better than analyst predictions of a loss of £15.1 million ($26.7m). The company’s purchase of Tomb Raider publisher Eidos Interactive in May has made it the largest publisher in the United Kingdom, although the buyout has had significant short term effects on the company’s finances, as it seeks to integrate and rationalize staff and assets from the two companies. SCi officials have indicated that as a result of the acquisition, the company would be changing its financial year end, and had already booked a £14.6 million ($25.7m) charge relating to it. The company also expects to achieved annual cost savings of £14 million ($24.7m) by reducing staff levels, management costs and closing former Eidos offices in Japan and Australia. Overall, the company claims the integration is going well, with titles like Championship Manager and Lego Star Wars giving Eidos a £1.6 million ($2.8 million) profit in a period of 7 weeks immediately post-acquisition, and that it expects to return to profitability during the twelve months to June 30th, 2006. "We expect the 2006 financial year to demonstrate the strength and breadth of the new Group’s brands and return Eidos to profitability. The launch of new hardware platforms plus the continued expansion of mobile and online games should continue to drive growth in the overall market and therefore the opportunities available to the enlarged Group," said CEO Jane Cavanagh in a statement.