SCi GROUP ANNOUNCES
Copyright 2007 Eidos plc Press Release
[ March 29th 2007 ]
Entertainment Group has reported a loss of
£17.9 million in the six months to December compared
with £19.9 million during the same period a year
before. Revenue rose to £74.5 million against
£50.1 million and earnings before interest, tax,
depreciation and amortisation improved to a loss
of £10.6 million from a loss of £11.2 million
in the same period last time.
on these results, Jane Cavanagh, Chief Executive
of SCi said: "During the first six months
of the financial year we have continued the successful
growth of SCi and consolidated our position as
one of the world's leading computer and video
strength of our franchises, the quality of our
development studios, our global distribution infrastructure
and our investment in New Media means that the
Group is set to benefit from the continued growth
in the games market.
recent months we have announced and completed
three agreements with Warner Bros. Entertainment,
one of the world's leading media companies. Under
these arrangements, Warner Bros. has made a significant
investment in the Group - strengthening our already
strong balance sheet and cash resources by £44.5
million (before costs), We have entered into a
series of licensing arrangements with Warner Bros.
to create and publish games based on a series
of their properties - including Batman, Looney
Tunes and the Hanna Barbera catalogue.
helps the Group achieve its objective of developing
games for a broader audience with more family
appeal. In addition we will benefit from working
with Warner Bros. primary distribution services
in North America.
have increased our portfolio of valuable intellectual
property with two new titles, Just
Cause and Battlestations
Midway. These titles immediately reached the
number one chart position in the UK and have the
potential to be long term franchises. It is particularly
pleasing that Battlestations Midway was completed
by our new development studio in Budapest.
Group has made significant investment in technologies
with the objective of making game development
as efficient and cost effective as possible. This
investment involves the creation of technology
engines, the creation of re-usable technology
and the establishment of more effective technology
sharing. In addition the Group is establishing
new studios in low cost locations, such as Montreal.
Group has substantially completed the development
of two game engines. CDC (developed by Crystal
Dynamics) and Glacier 2 (developed by IO Interactive)
to the stage where the engine technology can be
used both within those studios on multiple projects,
and also by other studios. The CDC engine will
form the basis of the Group's new studio in Montreal.
The CDC and Glacier 2 engines will be further
developed to the stage where they may be licensed
to third parties providing a potential new revenue
stream for the Group.
the leadership of our Chief Technology Officer,
Julien Merceron, the Group has established a worldwide
asset sharing system, supported by an Academy
of Experts and a worldwide technology website.
Within each development studio, re-usable technology
provides the basis for efficiently producing successive
versions of franchises such as Tomb
the Group develops its technology strategy it
will continue to review the application of our
capitalisation and amortisation policy to ensure
that it accurately reflects the timescales over
which engines and re-usable technology are amortised.
Group has a strong portfolio of future new releases,
Raider Anniversary, Diner Dash, Pony Friends,
and Destroy and Kane
& Lynch. In the second half of the year we
plan to publish 7 new products on 19 formats across
all platforms bringing the total new published
releases to 11 compared to 9 in 2006.
total we plan 25 new releases for the 2007 financial
year compared to 9 in 2006 The Group also continues
to increase its third party distribution business.
Our global distribution products in the second
half of the financial year will include a PSP
version of 300:
March to Glory, based on the recently released
Warner Bros. film, and Escape from Bug Island
on Nintendo Wii."