Q2 2010 27 August - Funcomcdn.funcom.com/investor/2010/2010 2Q Funcom Q2 2010... · 2017. 9. 4. ·...

Q2 2010

27 August

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 Q2 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 Q2 2010 financial report


Q2 highlights

• Revenues for the second quarter of 2010 (Q210) were 5,604 TUSD, up 46% from Q110, and EBITDA was 1,644 TUSD

• The Company’s financial position remains strong, with 19,236 TUSD in cash as of 30. June, 2010 and an equity ratio of 87%

• The first Expansion Pack for Age of Conan, Rise of the Godslayer, was launched on May 11. The launch resulted in a significant increase in players, playtime and customers

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

• The Company arranged its second major PR-event for The Secret World, showing in-game footage to the world press at Gamescom in Cologne in August

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

• The Company is planning to launch the online multiplayer game, Bloodline Champions, during Q4

• The company is planning to implement monetization for Pets vs Monsters Q4 2010


Agenda


2. Key financials

3. Project status






Key financial summary, Q2 2010

Revenues

• Main source; subscription revenues from the Age of Conan game

• Higher revenues compared to Q110 - due to revenues related to the Age of Conan expansion pack launched in the quarter

Earnings

• EBITDA affected positively by reduced hosting costs for servers in use for Age of Conan from May 2010

• EBITDA affected positively by lower calculated cost for share based payment

• EBITDA affected negatively by higher royalty cost on revenues from Age of Conan

• EBIT affected negatively by higher amortization of Age of Conan (expansion pack)

5,604

253

3,835

-1,673

-1,507

Q2,2010 Q1,2010

Revenues

EBIT

EAT

TUSD

562

-737EBITDA 1,644


Key financial summary, half year 2010

Revenues

• Lower revenues compared to 2009 – mainly due to reduced revenues from Age of Conan

• Deferred revenue as of June 2010 amounts to 4.3 MUSD

Consolidated statement of financial position

• Cash balance of 19,236 TUSD as of 30 June, 2010

• High equity-to-assets ratio (87 %)

• No interest bearing debt

• Release of 240 TUSD in provision for capital duty – taken directly to equity.

• Equity issues of 185 TUSD during Q2 (exercise of options)

• Relatively small changes in the statement of financial position from Q1 2010 except for cash, intangible assets and short term debt.

9,439

-1,254

13,870

711

1,231

2010 2009

Revenues

EBIT

EAT

TUSD

-1,111

3,647EBITDA 907



0

2500

5000

7500

Q3 2009 Q4 2009 Q1 2010 Q2 2010

56904316 3835

5604

Quarterly revenues (TUSD)



0

2500

5000

7500

10000

Q2 2007 Q2 2008 Q2 2009 Q2 2010

1084

12231

61455604

Q2 revenues (TUSD)



-2000

-1000

0

1000

2000

Q3 2009 Q4 2009 Q1 2010 Q2 2010

380 98

-737

1644EBITDA (TUSD)



-4000

-3000

-2000

-1000

0

1000

2000

3000

4000

Q2 2007 Q2 2008 Q2 2009 Q2 2010

-1112

-1882

748

1644

EBITDA (TUSD)


Agenda


2. Key financials

3. Project status






Age of Conan - Status

• The first Expansion Pack for Age of Conan, Rise of the Godslayer, was launched on May 11 and received excellent review scores

• 85% average review score

• 85% on Gamespot

• 90/100 Ten Ton Hammer

• 8.5/10 MMORPG.com

• The launch resulted in a significant increase in players, playtime and customers


Age of Conan – Marketing update

• Summer expansion trial campaigns completed

• New active subscription campaigns

• New incentives for longer term subscriptions

• Age of Conan was launched in Korea during Q2

• Monetazation in Korea was initiated in Q3


Age of Conan – Future development

• Building new content to continuously improve retention including large version 2.1 update, new raid content, new mini-game based PVP content and expanding social and guild content

• Integrating latest Dreamworld technology

• Montreal development team established

• Business model considerations. Subscription model still benefical and attractive and there is a shift towards more hybrid models with a combination of subscriptions and microtransactions


The Secret WorldPR initiatives

• Major press event at Games Convention in August with over 100 journalists attending demos

• Showcasing the first hour of game-play

• First extensive in-game, behind the scenes video, to be released on August 27 as the embargo on game coverage is lifted.

• Expect broad coverage in the online gaming press in the next days.


• 110 people working on project

• The development team is close to full size. The team has been further strengthened by the transfer of senior resources from Conan.

• Making solid progress on all the main areas of the game

• Key focus areas include:

• Mission and content production across all regions of the game

• Extending and implementing further areas of the character development systems

• Game play testing, iterations and improvements

The Secret WorldDevelopment status


Intro video clippings


Market update, Large-scale MMO’s

• WOW retains position as major game in the Western World

• Aion, launched in 2009, performing well

• Relatively limited competition in the space: Games to watch – Guild Wars 2, Star Wars: The Old Republic, Final Fantasy, Warhammer40K, Dust

• Strong market performance across Asian markets and in developing markets

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

• More large scale games moving to hybrid subscription/micro-transaction models to increase ARPU


Agenda


2. Key financials

3. Project status






• PR & Marketing

• Major presence at Gamescom

• Substantial positive coverage on mainstream

gaming sites

• Hired James Harding as eSport Manager

• Development status

• Final stages of Beta

• Proprietary Item Shop in development

• Tournament System being finalized

• Core game is polished and solid

• Launch target: Q4 2010


Other free-to-play initiatives

• Beta Phase 3, live testing

• Testing membership sign-up, billing structure, updated game-play and infrastructure

• Testing stickiness and analyzing retention mechanics

• Preparing for montetization in Q4 2010

Other projects

• The Company has several game concepts in early

stages of prototyping and development

• The company has established a small production team

to develop social games for Facebook etc.


Agenda


2. Key financials

3. Project status






Summary and outlook

Summary Financials:

• Revenues of 5,604 TUSD in Q210, 46% up from Q110, and EBITDA of 1,644 TUSD for Q2

• The Company’s financial position remains strong, with 19,236 TUSD in cash as of 30.

June, 2010 and an equity ratio of 87%

Summary Operations:

• The first Expansion Pack for Age of Conan, Rise of the Godslayer, was launched as planned on May 11, leading to a significant increase in players, playtime and customers

• Neowiz, the Korean partner for Age of Conan launched Age of Conan in openbeta, on May 20, and implemented monetization in July

• During Q2 2010, the company has conducted extensive PR activities for The Secret World and revealed in-game game-play footage at GC

• The Company is planning to launch the online multiplayer game, Bloodline Champions, during Q4

Financial Outlook:

• Revenues in Q3 are expected to be lower than for Q2, due to the expansion pack launch in Q2


Agenda


2. Key financials

3. Project status






Statement of financial position


Profit and loss account


Cash flows and changes in equity


Interim segment results


Last slide

Q2 2010 27 August - Funcomcdn.funcom.com/investor/2010/2010 2Q Funcom Q2 2010... · 2017. 9. 4. ·...

Documents

Transcript of Q2 2010 27 August - Funcomcdn.funcom.com/investor/2010/2010 2Q Funcom Q2 2010... · 2017. 9. 4. ·...