prelim figures q1 2010 - funcomcdn.funcom.com/investor/2010/2010 1q funcom q1 2010... · 2017. 9....

Q1 2010May 21

2Private and Confidential - Intended solely for use by recipient

Disclaimer – forward looking statements

• This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking. You should not place undue reliance on these forward-looking statements for many reasons.

• These forward-looking statements reflect current views with respect to future events and are by their nature subject to significant risk and uncertainties because they relates to events and depend on circumstances that will occur in future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

• Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity or performance will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this presentation, either to conform them to actual results or to changes in our expectations.


Agenda

1. Key highlights Q1 2010

2. Key financials

3. Project status

1. Large-scale MMO’s

2. Free to play MMO’s

4. Summary and outlook

5. Extract from Q1 2010 financial report


Q1 highlights

• Revenues for the first quarter of 2010 (Q110) were 3,835 TUSD and EBITDA was -737 TUSD

• The Company’s financial position remains strong, with 25,264 TUSD in cash as of 31. Mar., 2010

• The Company’s cost reduction initiatives will reduce cash outflows by 400.000 USD pr month during Q2

• The first Expansion Pack for Age of Conan, Rise of the Godslayer, was launched on May 11. The launch has led to positive trends in player activity, sales and revenues.

• Neowiz, the Korean partner for Age of Conan, launched the game in open beta on May 20.

• For the first time, the Company showed in-game game play footage from its next large scale MMO, The Secret World, to world press and received broad and positive coverage for the game.

• The Company launched the second beta-test for it’s first free to play MMO, Pets vs Monsters, during Q1/Q2

• The Company signed a publishing agreement with Stunlock Studios AB for the game Bloodline Champions. The arena based PVP-game, is expected to launch in late 2010.


Agenda


2. Key financials

3. Project status






Key financial summary, Q1 2010

Revenues• Main source; subscription revenues from the Age of Conan game• Lower revenues compared to Q409 - due to lower revenues from the Age of Conan game

Earnings• EBITDA affected positively by a revaluation of expected returns on box sales related to Age of Conan• EBITDA affected negatively by items related to ramp up of the Montreal office and expansion of the office in

China

Consolidated statement of financial position• Cash balance of 25,264 TUSD as of 31 March, 2010 • High equity-to-assets ratio (83 %), low interest bearing debt• Relatively small changes in the statement of financial position from 31 December 2009 except for cash and

intangible assets.

3,835

-1,507

7,725

1,4401,468

Q1,2010 Q1,2009Revenues

EBITEAT

TUSD

-1,6732,899EBITDA -737



0

2500

5000

7500

Q2 2009 Q3 2009 Q4 2009 Q1 2010

6145 56904316

3835

Quarterly revenues (TUSD)



0

2500

5000

7500

10000

Q1 2007 Q1 2008 Q1 2009 Q1 2010

1194963

7725

3835

Q1 revenues (TUSD)



-2000

-1000

0

1000

2000

Q2 2009 Q3 2009 Q4 2009 Q1 2010

748380

98

-737

EBITDA (TUSD)



-4000-3000-2000-1000

01000200030004000

Q1 2007 Q1 2008 Q1 2009 Q1 2010

-916

-2553

2898

-737

EBITDA (TUSD)


Agenda


2. Key financials

3. Project status






•• TextText

Age of Conan Alt. 2TextText


Age of Conan - Status

• Rise of the Godslayer expansion successfully launched on May 11

• Positive trends in activity levels, sales and revenues

• Positive early reactions from users and press


Age of Conan – Sales and marketing

• Successful pre-order campaigns

• New website launched with expansion branding

• New retail SKUs launched in multiple territories

• New Conan movie being filmed atm. Positive brand development


Age of Conan – Launching in Korea

• Completed final stages of Closed Beta testing

• Prominent marketing campaigns started

• Open Beta launched on May 20th


Age of Conan – Product focus

Product expansion

• Further expand customer retention mechanics• Additional quality content updates to the live service• Improve and optimize server technology

Continue to improve online distribution

• New launcher technology• Reduced client size• Advanced streaming options• Improved and more varied trial offerings


The Secret WorldPR PR initiativesinitiatives

• First location in the game revealed at GDC in March: Kingsmouth in New EnglandThe location was revealed through an ARG website, new artworks and a new video.

• In-game game-play footage shown to the press for the first time at GDC.

• First trailer video featuring actual in-game footage released during Q1.

• Significant and positive coverage in global gaming press from the GDC event


•• 100 100 people working on projectpeople working on project

• The Secret World reached an important milestone during Q1/Q2 including several hours of game play with new iterations on controls, abilities, missions and combat

•• Key content of the mile stone was among Key content of the mile stone was among others:others:-- Many hours of mission gameMany hours of mission game--playplay-- Combat and ability systemsCombat and ability systems-- Character customization with abilitiesCharacter customization with abilities-- PVP gamePVP game--playplay-- Polished locations with adversaries and Polished locations with adversaries and nonnon--player charactersplayer characters

The Secret WorldDevelopment statusDevelopment status


Video


Market update, Large-scale MMO’s

• Turbine bought by Warner Brothers in Q1

• WOW numbers reported at 11,5 million subscribers

• No major new MMOs announced in Western World

• Challenging retail gaming market with large focus on block-buster titles

• Continued growth in online gaming and digital distribution of gaming content


Agenda


2. Key financials

3. Project status






Funcom’s free-to-play MMO’s

Broad reach:

• Low tech requirements

• Instant access to games

• Online distribution

• Low entry barriers

Faster, lower cost development:

• Re-usable technology

• Enable fast implementation of diverse game concepts

• Smaller teams, 10-15 people

Game/tech implications:

• Non-high-end graphics

• Smaller initial downloads, streaming

• Easy controls, simple concepts

• Focused game play

Game/tech implications:

• Modular architecture

• High-level programming language, Java etc.


Pets vs. MonstersTime lineTime line

• First external beta• Multi Server Support• Distribution Technology

• Installation• Client size

• Optimization & Compatibility

PrototypeJan. 2009

Closed BetaAug. 2009

Ltd Open BetaDec-Jan2009

MonetizationH1/H2 2010

Open Beta 2Mar 2010

Open Beta 3May/June

2010

• Norwegian• Quick fixes

implemented

• Content extensions• Larger enhancements


Other Free to Play MMO’s

• Bloodline Champions: Funcom will publish, operate and provide customer support for the multi-player arena game. The game is currently in the later stages of beta testing

• Internally developed game concepts: The Company has several game concepts in early stages of prototyping and development

• The company has established a small production team to develope games for FacebookThe Facebook initiative will follow the same development and test cycle as the other Free to Play initiative Pets vs Monsters


Video


Agenda


2. Key financials

3. Project status






Summary and outlook

Summary Financials:• Revenues of 3,835 TUSD, EBITDA of -737 TUSD for Q1• Solid financial situation with 25,264 TUSD in cash

Summary Operations:• The first Expansion Pack for Age of Conan, Rise of the Godslayer, was launched

as planned on May 11, leading to positive game trends• Neowiz, the Korean partner for Age of Conan launched Age of Conan in open

beta, as planned, on May 20.• During Q1 2010, the company has conducted extensive PR activities for The

Secret World and revealed in-game game-play footage for the first time.• The Company signed a publishing agreement with Stunlock Studios AB for the game

Bloodline Champions. The arena based PVP-game, is expected to launch in late 2010.

Financial Outlook:• Revenues in Q2 are expected to be higher than for Q1. Since Rise of the

Godslayer is in its launch phase, the size of the impact from this launch is still uncertain.


Agenda


2. Key financials

3. Project status






Statement of financial position


Profit and loss account


Interim segment results


Last slide

prelim figures q1 2010 - funcomcdn.funcom.com/investor/2010/2010 1q funcom q1 2010... · 2017. 9....

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