Funcom Q4 Revenues Down Thanks to Poor ‘Secret World’ Performance

Funcom reported less-than-stellar revenues for the fourth quarter of 2013, citing a drop in the performance of its MMO, The Secret World. In the quarter that ended December 31, 2013 Funcom reported $4.3 million in revenue, down from the $7.8 million it generated in the same period a year earlier. Funcom's earnings before interest, tax, depreciation and amortization (EBITDA) were $233,000, down from $2 million the prior year. The company also reported a $4.2 million impairment on The Secret World and its underlying technology due to a decrease in its projected revenue.

Speaking briefly on the investigation being carried out by Økokrim, the Norwegian economic crime unit, Funcom confirmed said that no one at the company has been charged following the raid at the end of January. The company said it would continue to assist in the ongoing investigation.

Funcom also revealed that it has secured a new loan of $5.5 million with its main shareholder, KGL Investments. It has already received $3 million of the total amount, with two installments of $1.25 million to follow in the first and second quarter of 2014. At the end of Q4 2013, Funcom said it had $2.6 million in cash.

The company's next major release will be Lego Minifigures Online. The game will go into open beta this summer.

Source: GII

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