Related News
'Tomb Raider' publisher Eidos downgrades revenue forecasts
Source: Agencies |
January 9, 2009, Friday
|
Online Edition
Online Edition
BRITISH games publisher Eidos, the maker of the "Tomb Raider" series, slashed its revenue forecasts today as the economic downturn hurt its sales, mainly in the United States.
Shares in Eidos PLC tumbled 27.5 percent as the company, formerly known as SCi Entertainment, also warned it could breach its debt covenants in the next six months.
Eidos said it had sold 1.5 million copies of the latest Lara Croft adventure, "Tomb Raider: Underworld," between its first release on November 18 in the United States and Christmas.
That was well below its forecasts, despite the game charting in the top 10 in Europe, because of a weak start in sales in North America.
"In a difficult North American economy we have seen retailers restricting inventory levels and triple-A products being price discounted above our expectation," the company said in a trading update to the London Stock Exchange.
"Consequently as we enter the second half of our financial year we are cautious about the potential for ongoing price discounting," it added.
That led the company, which also makes "Hitman," "Just Cause," and "Deus Ex," to cut its full-year revenue estimate to a range of 160-180 million pounds (US$244 to US$275 million), down from its previous guidance of 180-200 million pounds.
The company added that it had passed its peak net debt position and retained "sufficient headroom" within its committed banking facility, but added that given the revised profit expectations it may have to begin discussions with its lender about its debt due in June 2009.
Eidos said it expected its 2009 financial year to get a boost from the release of its "Batman: Arkham Asylum" game, which is currently being promoted in a trailer on all DVDs of Warner Bros' "The Dark Knight."
Eidos, which adopted the name of the company taken over by SCi Entertainment in 2005, has struggled in recent years after delays to the launch of its games and has frequently been at the center of takeover speculation. Warner Bros parent Time Warner has increased its stake in the company to 20 percent from 16 percent.
New Chief Executive Phil Rogers made moves to restructure the company last year, cutting jobs and axing low performing games.
Shares in Eidos PLC tumbled 27.5 percent as the company, formerly known as SCi Entertainment, also warned it could breach its debt covenants in the next six months.
Eidos said it had sold 1.5 million copies of the latest Lara Croft adventure, "Tomb Raider: Underworld," between its first release on November 18 in the United States and Christmas.
That was well below its forecasts, despite the game charting in the top 10 in Europe, because of a weak start in sales in North America.
"In a difficult North American economy we have seen retailers restricting inventory levels and triple-A products being price discounted above our expectation," the company said in a trading update to the London Stock Exchange.
"Consequently as we enter the second half of our financial year we are cautious about the potential for ongoing price discounting," it added.
That led the company, which also makes "Hitman," "Just Cause," and "Deus Ex," to cut its full-year revenue estimate to a range of 160-180 million pounds (US$244 to US$275 million), down from its previous guidance of 180-200 million pounds.
The company added that it had passed its peak net debt position and retained "sufficient headroom" within its committed banking facility, but added that given the revised profit expectations it may have to begin discussions with its lender about its debt due in June 2009.
Eidos said it expected its 2009 financial year to get a boost from the release of its "Batman: Arkham Asylum" game, which is currently being promoted in a trailer on all DVDs of Warner Bros' "The Dark Knight."
Eidos, which adopted the name of the company taken over by SCi Entertainment in 2005, has struggled in recent years after delays to the launch of its games and has frequently been at the center of takeover speculation. Warner Bros parent Time Warner has increased its stake in the company to 20 percent from 16 percent.
New Chief Executive Phil Rogers made moves to restructure the company last year, cutting jobs and axing low performing games.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
