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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.