GamesBeat

Eve Online developer’s financials take a major dive into the red

Above: Hilmar Petursson, chief executive of CCP. His company has seen better financial times.

Image Credit: Dean Takahashi/GamesBeat

The cancellation of the World of Darkness has reversed CCP’s financial fortune — and then some.

In its latest financial presentation, the Icelandic developer reported a loss of over $21 million for the 2013 fiscal year, a stark contrast to its $4.6 million in profit in fiscal 2012. The main cause of the sudden dive is a drastically increased research and development expense year-over-year — from $16.5 million to $56.5 million. Some of this $40 million spike must be from development costs of its properties: the space sim Eve: Valkyrie (still in development), the massively multiplayer online game Eve Online, and the shooter Dust 514. But according to Gamesindustry.biz, analysts think most of it consists of lost value from World of Darkness, a vampire-themed massively multiplayer online game that CCP canceled yesterday.

All this happened despite revenue rising from $56.3 million in fiscal 2012 to $76.7 million in fiscal 2013.

The following statement from the full financial report provides evidence for this theory:

“During the year the company assessed its capitalized development assets and determined that a portion of those assets would likely not have future economic benefits. IAS 38 requires that such assets should be derecognized and removed from the balance sheet. The expenses related to the derecognized assets are presented as part of research and development expenses in the statement of comprehensive income.”

Reblog this post [with Zemanta]
More information:

CCP was founded in the summer of 1997 with the goal of becoming a leading massively multiplayer game company. With the launch of EVE Online in May 2003, CCP has established itself as one of the leading companies in the field, winning n... read more »

Powered by VBProfiles


Mobile developer or publisher? VentureBeat is studying mobile marketing automation. Fill out our 5-minute survey, and we'll share the data with you.

GamesBeat is your source for gaming news and reviews. But it's also home to the best articles from gamers, developers, and other folks outside of the traditional press. Register or log in to join our community of writers. You can even make a few bucks publishing stories here! Learn more.

You are now an esteemed member of the GamesBeat community. That means you can comment on stories or post your own to GB Unfiltered (look for the "New Post" link by mousing over your name in the red bar up top). But first, why don't you fill out your via your ?

About GamesBeat