9-MONTH AND 3rd QUARTER REVENUE
OF FY 2011/2012
Unaudited preliminary data
Approved by the Board of Directors on February 9, 2012
Paris, France - February 13, 2012 - Atari S.A. announces its third quarter (ended December 31, 2011) consolidated revenue for Fiscal Year 2011/2012, up 20.7% from the third quarter of Fiscal Year 2010/2011 (+13.9% at constant exchange rate). This is mainly due to the growth of digital revenue (+126.1%), as the Company continues to expand its business in the digital space.
Commenting on this performance, Jim Wilson, CEO of Atari stated: "Atari is continuing its shift towards building and monetizing its mobile and online games. This strategy has produced some encouraging results over the period: over 2 million downloads of Breakout: Boost within 2 weeks of its launch, the continued and growing success of Atari's Greatest Hits, which has passed 5 million downloads. Atari is also focused on building its brand and IP portfolio through licensing and strategic partnerships."
Net revenue breakdown by segment was as follows:
Third quarter digital revenue, comprised primarily of digital distribution revenue (mobile, tablet and online) and licensing, was €5.2 million, a 126.1% (or €2.9 million) increase over the prior year as the Company continues to expand its business in the digital space. This improved performance resulted mainly from the success of the mobile and tablet and digital download titles, including Atari's Greatest Hits, and Breakout: Boost, Test Drive Unlimited 2 and Rollercoaster Tycoon. Digital revenue was 52.5% of total net revenue as compared to 28.0% in the third quarter of the prior fiscal year.
Third quarter retail revenue, comprised primarily of sales to retail stores, decreased by 20.3% to €4.7 million, versus €5.9 million in the third quarter of Fiscal Year 2010/2011. This trend is primarily due to continued focus on selling fewer but more profitable retail products.
9-month consolidated revenue for the fiscal year 2011/2012 (ended December 31, 2011) was €26.4 million, a €2.7 million decline (or -9.3%) from the comparable period for FY 2010/2011 (a -1.6% decline at constant exchange rate). Digital revenue grew by 141.5% and represented 59.5% of total revenue over the period, versus 22.3% the previous year, reflecting the Company's continued shift towards the higher-growth, higher-margin digital market segment (mobile, online) as well as the focus on fewer but more profitable games.
MAIN EVENTS OCCURING DURING Q3 2011/2012
Extension of the credit line maturity: In December 2011, the Company and BlueBay have agreed to extend to June 30, 2012 the maturity of the credit facility of €24.2 million.
BlueBay stake: In November 2011, BlueBay direct stake in Atari amounted to 29.2% of the outstanding number of shares after the conversion by BlueBay of a portion of the ORANEs held by them. At that date, on a fully diluted basis, BlueBay's stake remained unchanged and represented approximately 63.7% of the share capital of Atari.
As specified in the press release of Atari from November 8, 2011, BlueBay has indicated to Atari that the sole purpose of the conversion of the ORANEs referred to above is to simplify BlueBay's holding structure of its stake in Atari and that it does not intend to further increase, directly or indirectly, its shareholding in Atari.
Reduction of capital of Atari S.A.: In November 2011, as permitted by the September 30, 2011 shareholders meeting, Atari S.A. reduced its capital, not motivated by losses, by reducing the nominal value of the shares from 1 euro to 0.5 euro. The amount of the reduction, €12.5 million, was allocated to a premium account and the Company's bylaws were modified accordingly.
NEW OUTLOOK FOR 2011/2012
Atari expects to continue launching new mobile and online games in Q4 and in early FY 2012/2013 based upon its highly popular and world renowned game brands. Announcements of such titles are done at the time of release.
Forward looking statements:
This press release contains forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Atari. Although Atari believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Atari's control, and notably some risks described in the 2010/2011 Document de référence of the group filed by Atari with the Autorité des Marchés Financiers (AMF: French securities regulator) on July 29, 2011 under number D.11-0755 and which is also available in English on Atari's corporate web site (http://www.atari.com). The present forward-looking statements are made as of the date of the present press release and Atari disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Atari, SA
Atari (www.atari.com) is a multi-platform, global interactive entertainment and licensing company. The original innovator of video gaming, founded in 1972, Atari owns and/or manages a portfolio of more than 200 games and franchises, including world renowned brands like Asteroids®, Centipede®, Missile Command®, Pong®, Test Drive®, Backyard Sports®, Deer Hunter®, and Rollercoaster Tycoon®. Atari capitalizes on these powerful properties by delivering compelling games on smartphones, tablets and other connected devices and online (i.e. browser, Facebook® and digital download). As a licensor, Atari extends its brand and franchises into other media, merchandising and publishing categories.
Atari has offices in Los Angeles, New York, Paris, Lyon and London.
© 2011 Atari Interactive, Inc. All rights reserved. Atari word mark and logo are trademarks owned by Atari Interactive, Inc.
Contact:
| Investor relations | Media relations |
| Atari Alexandra Fichelson Tel + 33 (0) 4 26 68 93 59 | Calyptus : Marie Ein - Alexis Breton Tel + 33 (0) 1 53 65 68 68 atari@calyptus.net |
APPENDIX (Unaudited preliminary data)
Note: The net income of Cryptic Studios business, in the process of being disposed as of March 31, 2011 and finalized in August 2011, is reported on the line "discontinued operations" as of April 1, 2009. 2010/2011 and 2011/2012 Group revenues exclude Cryptic Studios business.
BREAKDOWN OF REVENUES BY QUARTER
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[1] Previous guidance initially published on May 13, 2011: "Overall the Company expects continued improvement in Current Operating Income for the full year 2011/2012."
