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SCi GROUP PRELIMINARY
TRADING UPDATE
Copyright 2008 www.tombraiderchronicles.com
[ July 22nd 2008 ]
SCi
Entertainment Group - owner of Eidos
plc and publisher of Tomb
Raider - today announced a preliminary trading
update ahead of the company's full year disclosure
on September 15, 2008. As previously announced,
SCi has put a clear strategy in place and has
taken decisive steps to become a studio-led business
with a focus on cornerstone franchises and a flexible
approach to distribution.
During
the second half of the financial year SCi announced
good progress had been made with the cost reduction
and re-structuring plan outlined on 29th February
2008. In addition, during the period, the Company
arranged a new debt facility of £25 million and
raised £60 million before expenses by way of a
successful Placing and Open Offer of new shares
to provide working capital.
Financial
bullet points include the reduction of annual
operating costs by £14 million, a 25% reduction
in work-force, the sale of Spanish distributor
PROEIN, the downsizing of Pivotal Games, the transition
of production services to Montreal and the integration
of North American distribution with Warner Bros
on track with full collaboration on upcoming title
launches.
Revenues
are expected to be approximately £134 million
and losses at the EBITDA level (excluding share
based compensation and restructuring charges)
are expected to be no more than £100 million.
The full year loss reflects both the significant
write-offs made to the carrying value of the Group's
development projects at the half year and the
decision, as previously announced, to delay a
number of major product launches out of the second
half into the next financial year.
Game
releases scheduled for the first half of 2008/09
include Tomb
Raider Underworld. This next edition of the
Lara Croft title is scheduled to be released on
18th November in the U.S. and 21st November in
Europe/ROW to capitalise on the run-up to the
key holiday season.
Tomb
Raider Underworld was one of the most eagerly
awaited properties at E3, the major global video
games show. In the second half of the 2008/09
financial year, the publisher's launch schedule
includes Just Cause 2, Battlestations Pacific
and a Batman game.
At time
of going to press, SCi Entertainment Group was
trading + 0.25 on the London Stock Market with
a market capital of £90.72 million. This would
suggest confidence in the once-beleagued publisher
has been restored following the successful implementation
of cost-reduction plans as outlined above.
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