Atari's 'Tremendous Revenue Growth' Boosts Infogrames' First-Half

Atari's turnaround story continues. Sales grew 145% for the first-half, helping to lift parent company Infogrames' sales over 44% for the same period.

by James Brightman on Friday, November 14, 2008

Atari's 'Tremendous Revenue Growth' Boosts Infogrames' First-Half

French publisher Infogrames, which earlier this year completed the full acquisition of Atari, announced its first-half fiscal results, revealing a net revenues increase of 44.5 percent to 131.8 million euros. While the European business still drove the majority of sales with 77.4 million euros, it was the U.S. businesss (Atari) that saw the most growth. Sales jumped 145 percent to 36.3 million euros. The Asian business brought in 18.1 million euros.

U.S. sales were led by Alone of the Dark, Dragon Ball Z: Burst Limit and Backyard Baseball. Infogrames said that Atari's momentum "results from the restructuring initiatives implemented... as well as the recovery plan put into action by the recently appointed management team."

The majority (63 percent) of Infogrames' sales were generated by consoles (PS3, Xbox 360, Wii), while portables (DS, PSP) contributed 13 percent to sales and other consoles such as PS2 contributed 12 percent. PC game sales also totaled 12 percent.

"Strong revenues growth for the first half of the fiscal year 2008 / 2009 reflect strong sales and solid distribution. This first half of the year also showed improvement of current operating income resulting from improved cost control, the early results of restructuring plan and profitability measures implemented since the beginning of the fiscal year. I also would like to point out the turn around in the U.S. with tremendous revenue growth of 145% and reduction of losses," said a pleased David Gardner, Infogrames' Chief Executive Officer.

He continued, "Given current economic situation, we think that holiday period will be very competitive, however we reiterate our full year revenues growth guidance at 12% to 18 % and return to profitability by the second half of 2009 / 2010 on a 12-month basis. We are very confident that this first half is just the beginning of a new positive trend as we are efficiently rolling out our strategy, by strengthening our distribution revenues with new partnerships and improving our 2009 / 2010 products line up with new titles such as the recently announced Ghostbusters and The Chronicles of Riddick."

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