However, net debt decreased following the offloading of Cryptic
Atari’s financial results for the fiscal year ending March 31 have revealed sharp reduction in revenue as the company vowed to continue its focus to mobile and online gaming.
The publisher saw a 34.1 percent drop in revenue from the previous year, dropping from 60.1m euros to 39.6m euros. According to the report, this decline “resulted primarily from the lower number of retail titles as [Atari] is focusing on continuing its shift towards building and monetizing its mobile and online games as well as developing its licensing business.”
The report also revealed that 52.5 percent of the company’s revenue was digital, up from 24.8 percent during the previous year.
Current operating income was down from 2.3m euros to 2.1m euros, while net income from continued operations rose from 0.5m euros to 0.8m euros. However, net debt decreased from 36m euros to 15.2m euros. This is largely due to the disposal of MMO developer Cryptic Studios.
Chief executive Jim Wilson said, “The company’s financial results have continued to improve during FY2011/2012, with the accelerated monetization of Atari’s brand and IP portfolio in the mobile and online game segments. Our efforts have focused on execution and maintaining a strict investment discipline, on top of a significant adjustment of the company’s perimeter aiming to restore long term profitability. For 2012/2013, we will seek to expand further in the fast-growing mobile games segments and drive the company to further grow its online and franchise licensing businesses.”
Looking forward, Atari plans to expand further in the mobile and digital markets and to leverage its brand through more licensing partnerships. The publisher also expects to improve its current operation income for the next fiscal year.
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