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Infogrames Increases Revenues 45%

Joe Keiser's picture

By Joe Keiser

November 17, 2008

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Lyon, France-based Infogrames, the parent company of Atari Inc, has revealed that it has increased its revenues 44.5 percent for the six-month period ending September 2008. The US-based Atari contributed significantly to this increase, with Infogrames reporting a 145.3 percent revenue increase, from €14.6m ($18.5m) to €36.3m ($46m), in the American region alone.

The company cited multiple reasons for this strong growth in the west, mentioning strong sales of Alone in the Dark (pictured), Dragon Ball Z: Burst Limit and Backyard Baseball as well as early returns from the restructuring efforts of Atari’s new management. US revenues made up 28 percent of Infogrames’ total, compared to 16 percent for the same period in 2007. Europe and Asia showed 58 percent and 14 percent growth respectively.

Infogrames also revealed that its revenues have become extremely reliant on the current generation of consoles: software on the PS3, Xbox 360 and Wii represented 63 percent of the company’s revenue for the half. Handhelds generated 13 percent of revenue, with previous generation consoles and the PC each contributing 12 percent.

According to the company, this increased revenue performance combined with cost control measures allowed the company to cut its operating loss by 7.5 percent to €37.1m ($47m). While Infogrames admitted that the 2008 holiday season will be “competitive,” it held its full fiscal 2008/2009 year guidance of 12 percent to 18 percent revenue growth. The company expects to return to profitability in the 2009/2010 fiscal year.

Infogrames CEO David Gardner said of his company’s performance, “We are very confident that this first half is just the beginning of a new positive trend as we are efficiently rolling out our strategy, by strengthening our distribution revenues with new partnerships and improving our 2009 / 2010 products line up with new titles such as the recently announced Ghostbusters and The Chronicles of Riddick.”