20th Sep 2013 07:25
LONDON (Alliance News) - Keywords Studios PLC Friday said it now only expects its 2013 profits to be in line with 2012 after games publishers delaying titles ahead of the release of the next generation of games consoles, which will be launched in fewer territories initially than the company expected.
In a trading update the company said that it had increased revenues by 12% in the first half of its financial year, to EUR7.2 million from EUR6.4 million in the previous year. Pretax profit for the half year ended July 8 was EUR400,000, down from EUR1.4 million in the previous year as it invested in expansion, opening an office in Seattle and and increasing headcount.
The launches of next generation games consoles, Xbox One and Playstation 4, in the second half of the year will increase activity, the company believes, but prompted several publishers to defer launches of their current generation titles in order to focus on new generation games and benefit from the attention that brings.
As a result, the company expects a weighted second half of the year with margins up on the first half, but following the scaling back of launch territories for the next generation consoles it believes that the video games service market will be softer than it had previously expected.
The two consoles will be launched in November a week apart. The Xbox One will initially launch in 13 markets, and the Playstation 4 in 20 markets, with launches in Asian territories planned for December.
"While it has proven difficult to predict the exact timetable of forthcoming launches, 2014 is expected to be a year of significant activity for the games industry leaving us well placed for substantial growth in the year ahead," Chief Executive Andrew Day said in a statement.
The company's shares were down 18.9% at 133.5 pence early Friday, one of the biggest falls on the London market.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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