Feeds

Eidos profits defy Legacy of Kain

Revenues up despite struggling titles

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Eidos plc - the software outfit behind Lara Croft - racked up increased profit even though half-year revenues dipped after two titles failed to perform as expected.

The UK's largest video games developer and publisher said that weaker than expected sales for two of its titles in the US market had contributed to the dip in turnover.

Earlier this year the company warned that sales of Commandos 3 and Legacy of Kain had proved disappointing. This, combined with US hardware sales falling short of market forecasts and a weaker US dollar, would result in revenue for the period being "modestly below market expectations", it predicted.

And it was right. For the six months to the end of December 2003 revenues were £78.7m, compared with £88.9 in the same period in 2002.

Despite this, profit was up from £4.4m to £6.2m.

The company also announced today that it has entered into a conditional agreement to acquire Danish-based studio IO Interactive - which develops the "Hitman" franchise - for £23 million in cash and stock.

Once the deal goes ahead it's expected to make a small contribution to operating profit in this financial year, the company said in a statement.

Commenting on the results, Eidos chief exec, Mike McGarvey, said: "I am pleased to announce operating profits pre goodwill and exceptionals up 30 per cent and profit after tax up 42 per cent, our third consecutive profitable six month period.

"This performance has been driven by the on-schedule release of a strong portfolio of quality games and demonstrates the benefits of our strategy of owned IP supported by stringent cost and process controls.

"We look forward to the remainder of this financial year, which will see the release of some of our most exciting titles. We remain confident in meeting current market expectations for the full year to 30 June 2004," he said.

During the second half of this financial year, Eidos expects to release a further six titles including Thief: Deadly Shadows, ShellShock: Nam ’67 (previous working title: Tour of Duty) and, on 30 April, the next sequel in the Hitman franchise, Hitman: Contracts.

By late morning shares in Eidos were down 2p (1.5 per cent) at 131.5p. ®

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.