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The Funcom Group
Funcom N.V. and subsidiaries
2015
First Quarter
Presentation
The Funcom Group
Funcom N.V. and subsidiaries
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 relate 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 forwardlooking 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.
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Agenda
1. Key highlights 1Q 2015
2. Key financials
3. Project status
•
Large scale MMO’s
•
MMO’s in development
4. Summary and Outlook
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Highlights
• Q1 FY15 revenues were USD 2,772k, a decrease of USD 144k compared to Q4 FY14
• The Live Games – Anarchy Online, Age of Conan and The Secret Word – were the major
contributors to the revenues
• The EBIT improved from USD -439k in Q4 FY14 to USD -269k in Q1 FY15 mainly due to the
realignment of expenses with the declining revenues
• LEGO Minifigures Online (LMO) will switch to a buy-to-play model this summer
• The cash position is USD 2,452k in Q1 FY15 compared to USD 3,705k in Q4 FY14
• Restructuring going to plan. The impact of these costs savings will continue to materialize
in Q2 FY15
• Quarterly operating costs are down USD 1,100k YoY and down USD 802k from Q4 FY14.
• Rui Casais has been appointed CEO as of the 13th of May
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Agenda
1. Key highlights 1Q 2015
2. Key financials
3. Project status
•
Large scale MMO’s
•
MMO’s in development
4. Summary and Outlook
Please send questions to [email protected]
Key Financial Summary – Q1 FY15
Notes
Q1FY15
Q1 FY14
Revenues
2,772
3,836
EBITDA
487
451
EBIT
(269)
(72)
EAT
(144)
(659)
in K USD
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< Main sources of
revenues are The
Secret World and Age
of Conan
< Year on Year decrease
in revenues due to
ageing of the Live
Games
Key Financial Summary, 1Q 2015 - Revenue
Quarterly Revenues (TUSD)
3,500
3,190
3,000
2,939
2,772
4Q 2014
1Q 2015
2,651
2,500
2,000
1,500
1,000
500
0
2Q 2014 3Q 2014
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Key Financial Summary, 1Q 2015 – Operating costs
Quarterly Operating costs (TUSD)
Notes
6000
5000
4000
3,674
3,119
3,087
3000
< Alignment of the
operating costs with
the declining revenues
2,285
2000
1000
0
2Q 2014
3Q 2014
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4Q 2014
1Q 2015
< Favorable foreign
currency exchanges on
the costs of European
operations in 1Q FY15
compared to FY14
Agenda
1. Key highlights 1Q 2015
2. Key financials
3. Project status
•
Large scale MMO’s
•
MMO’s in development
4. Summary and Outlook
Please send questions to [email protected]
Funcom’s Live Games and IPs
 Launch: 1999 & 2006
 Launch: July 2001
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 Launch: May 2008
 Launch: July 2012
Live Games : The Secret World
• Four main activities were done in Q1
• Released Valentine Bag for both FY15 solo and
group use
• Launched the new Enhanced Player
Experience, which improved game sales and
signups
• Released the Fall of Tokyo mission pack
• Ran a Golden Bag Weekend event, resulting in
increased point sales
• These activities proved to be successful leading to
results being in line with internal forecasts
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Other Live Games : Age of Conan and Anarchy Online
• The Age of Conan team released new content
and systems in Q1 FY15 that were well received,
such as a new Achievement System and a “Hoard
of the War Bringer” bag
• The Anarchy Online team focused mostly on
content and features that are to come out in the
future but still ran a Valentine’s Day Event and
released a Social Lottery Bag.
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LEGO® Minifigures Online
•
Significant modifications to the game to remove payment prompts in
support of the upcoming switch to a buy-to-play business model,
allowing us to create a more compelling and fun experience.
•
Created new Minifigures and content elements
•
Refinements to gameplay experience based on comprehensive user
behavior data collection
•
Conducted an iOS Beta to collect feedback and stability/performance
data which received generally positive feedback.
•
Continued to work with both LEGO and Apple to secure App approval
for LMO on iOS
•
Announced releases for Mac, Linux, iOS tablets and select Android
tablets later this summer
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LEGO Minifigures Online – B2P Transition
•
During this initial run on PC, Funcom has gathered valuable feedback, data and metrics,
allowing the company to carefully review the performance of each component of the
game, including the business model and its impact on player satisfaction.
•
Monetizing the game has proven challenging, and the company attributes this to the
business model’s impact on gameplay and player progression, as well as the play
patterns and the purchasing power of its target audience.
•
Funcom believes conversion to a buy-to-play model will allow the company to present a
more fun and engaging gaming experience that will resonate better with the target
audience, making it a more commercially viable proposition.
•
LEGO Minifigures Online will be launched as a buy-to-play game during the 2015
summer, and will be available on PC, Mac, Linux and select iOS and Android tablets.
•
The launch will also introduce significant enhancements to the game in terms of content
and gameplay to make it a more engaging experience and to make it a better fit with the
buy-to-play business model. This includes the introduction of a stronger narrative that
spans across the game and leads the player through the various worlds.
•
For more information, please see the buy-to-play FAQ available on Funcom.com.
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Other Projects
• The Longest Journey iOS: Localization in 5 languages to be released during Q2
• Dreamfall Chapters Episode 2, developed by Red Thread Games on license
from Funcom, was released during Q1
• Continued with exploring and prototyping concepts for possible new projects
during Q1
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Agenda
1. Key highlights 1Q 2015
2. Key financials
3. Project status
•
Large scale MMO’s
•
MMO’s in development
4. Summary and Outlook
Please send questions to [email protected]
Summary and Outlook
• LEGO Minifigures Online game announced switch of business model to B2P and a
full launch in Summer 2015
• At the end of Q1 FY15, the Company expects to have the capacity to fund its
operation for the following 12 months
• The Company expects revenues from games in Q2 FY15 to be in line with Q1 FY15,
with a small downward trend for the Live games
• The restructuring announced at the end of Q3 FY14 is going to plan and the impact
of these costs savings will continue to materialize in Q2 FY15. Additional structural
cost analysis is in progress
• As previously reported in the 2014 Annual Report, the Company continues to look
at all means of financing the business, including but not limited to restructuring the
debt
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Thank You
The Funcom Group
Funcom N.V. and subsidiaries