Infogrames FY losses grow to 226.1m

Infogrames has posted a loss of €226.1 million for FY 2008-2009 – an increase on the €51.1 million it suffered in its previous year.

The firm blamed ‘substantial write-offs and goodwill impairments’ on its publishing operations – as well as losses due to the exit of its distribution business in Europe and Asia.

However, excluding the costs of this transformation, Atari said its adjusted net losses for FY 2008/2009 amounted to €50.2 million, comparing more positively to its €55.1 million loss for the comparable period in FY 2007-2008.

The company’s total revenues grew by 51.0 per cent to €136.4 million. US distribution revenues almost doubled while European publishing operations grew by over nine per cent.

The firm said that the sale of its European and Asian operation to Namco Bandai would net it €30 million – and admitted that it had cancelled new projects.

It said: ‘To improve the cash position the Company has reorganised the business to focus on more cost effective mass-market games and online.

‘As such, the Company has cancelled projects which do not meet higher return on investment criteria and require significant working capital investments. Further, the Company is working on extending its credit line beyond December 2009.’

Infogrames reiterated its plan to re-brand its entire business under the Atari brand.