Press Releases
Frogster achieves high growth in third quarter - Eleventh monthly revenue record in a row in November
Profit estimate 2009 and outlook for 2010
Berlin, 03.12.2009:
Frogster Interactive Pictures AG, international publisher of massively multiplayer online games with headquarters in Berlin and subsidiaries in Berlin, San Francisco and Seoul, recorded a very pleasant revenue and result expansion in the first three quarters of 2009. The corporate revenue grew by a multiple to almost 9m Euro (entire year 2008: 2.2m Euro).
The very positive course of business is continuing also in the fourth quarter of 2009. Thus in November, at just under 1.8m Euro, a monthly revenue record was achieved for the eleventh time in a row. Herewith, for the first time, 50% of the revenues were gained abroad. Here, it has to be taken into consideration that the commercial launch of the success title ‘Runes of Magic’ in Korea had been postponed to November 19th so that revenues from the important Korean market only counted in on eleven days out of November. The Frogster group’s companies have especially grown in the international markets of France, Spain and the USA in November.
Guidance for 2009 confirmed: six-fold revenue growth to 13.5m Euro realistic
The cumulative revenue of the first eleven months of the year 2009 thus amounts to almost 12m Euro (entire year 2008: 2.2m Euro). For the entire year 2009, the management estimates the revenue to be 13.5m Euro and the net profit to be 0.70 Euro per share. Should the estimate prove to be correct, the Frogster group would have reached their ambitious growth and revenue goals which were raised significantly already in the course of the year. One of the goals formulated at the beginning of the year, to reach a monthly revenue in the amount of 500k Euro in Europe and of 500k USD in Northern America by year-end only with the newly released massively multiplayer online game (MMO game) ‘Runes of Magic’, was already achieved in April and October 2009, respectively. Another highlight is the fact that the operative cash-flow in 2009 should turn out to be significantly positive for the first time.
Unique business model merely at the beginning of its growth story
Frogster is currently operating three client-based virtual worlds, so-called massively multiplayer online games, in different languages and countries and is one of a small number of publishers in Europe which have entirely dedicated themselves to this technology-driven, strongly growing entertainment trend on the internet. On top of that Frogster is one of the first in the innovative group of online games providers to focus on the novel free-to-play business model in the western world even for AAA titles, which is exceedingly successful in Asia. Here, the customer gains access to the three-dimensional adventure worlds on the internet, produced by large development teams during a course of several years, free of charge and has the opportunity to purchase virtual goods and services there for their custom-made avatar according to their gusto. These virtual goods and services, such as for example a special virtual horse or the rent for a virtual apartment, cause no additional production costs to Frogster, no matter which production volume. The management believes that Frogster is only just at the beginning of a growth and profit boost as the full version of the title ‘Runes of Magic’, described by some of the international press as best free-to-play MMO game in the world, has been launched only eight months ago in the German and English language versions, two months ago in the French and Spanish language versions and only two weeks ago in the Korean language version. Successful MMO games have a life cycle of five to ten years and reach their peak only after a few years.
In 2010, strong, profitable expansion shall be continued
In 2010, in addition to the further growth and roll-out of ‘Runes of Magic’, the eagerly expected free-to-play version of ‘The Chronicles of Spellborn’ shall be released in Asia and there shall be a targeted expansion of the portfolio by a client-based MMO game. Furthermore, Frogster strives for the publishing of browser-based MMO games which are more simple in quality compared to client-based MMO games, however easier to access for the player. Thus, further target groups that haven’t been reached yet, can be accessed.
Frogster group’s management is therefore confident to be able to increase revenue and result significantly in the upcoming year again. The guidance for 2010 envisions to achieve 25m Euro in revenue and 1.50 Euro per share in net profit. The international business shall contribute to this with a disproportionately rising share.
Bounty Bay Online
Pirates, Merchants & Explorers
With ‘Bounty Bay Online’ players enter the historic Age of Discoveries when famous circumnavigators were roaming the seas. Since 2007, they start an online career as a merchant, sailor, fisherman, pirate, explorer or in one of several other professions in a charming sailor setting. Alone or with a guild of players they follow gripping quests, start a flourishing overseas trade and discover monumental sights. Following exciting player vs. player battles on land and sea, powerful guilds can take control of cities and entire colonies and thus control their destinies.
More information on www.bountybayonline.com.
Runes of Magic
a world full of wizardry and adventure
‘Runes of Magic’ has been redefining the standard for free-to-play MMORPGs since 2009 with its massive amount of features. The online role-playing game is based on an exciting, multi-layered story, driven by thousands of quests set in the atmospheric fantasy world of Taborea. ‘Runes of Magic’ features a unique multiple class system enabling players to combine one of eight primary classes with a second and third class. Thanks to a comprehensive crafting system, individual player homes, arenas and battlefields, guild castles and siege wars, challenging dungeons and many other features, ‘Runes of Magic’ offers plenty of online adventures for all kinds of players.
More information can be found on www.runesofmagic.com.
TERA
online game world to set new standards in the genre
An impressive and highly-detailed virtual world with triple-A quality claim awaits thousands of players with ‘TERA’. Entirely developed in Unreal Engine 3, ‘TERA’ transcends current representatives of the genre with breathtaking 3D graphical environments, thrilling animations and spectacular effects. With seven races and eight character classes, ‘TERA’ offers an abundance of possibilities for character creation and development. The dynamic real-time combat system of ‘TERA’ gets players engaged in battles considerably more actively than all conventional MMORPGs available on the market. ‘TERA’ is set to be released in May 2012 based on a subscription model.
More information can be found on www.tera-europe.com.
Eligium
The Chosen One
In ‘Eligium – The Chosen One’, MMO fans will come face-to-face with hordes of menacing demons. It is up to the chosen one to reunite the four races in order to repel the hellish creatures. Through its various features including an atmospheric game world, numerous gloomy dungeons with demanding boss battles, raid instances, an inspired PvP and ranking system, open world events, an unique item upgrade system, and mounts which players can train and watch grow, ‘Eligium’ provides players with a feature packed gaming experience unlike no other.
More information can be found on www.eligium.com.
RaiderZ
An Action-Packed Fantasy Game World
With ‘RaiderZ’, Frogster will release an action-oriented online game that requires sophisticated tactical combat skills. Unlike traditional point-and-click MMO games, players will have direct control over their characters in combat due to the game’s innovative non-targeting combat system. ‘RaiderZ’ sets itself apart with its detailed and atmospheric game environments, an epic background story and impressive boss opponents. Frogster is currently planning to unveil the title as a free download starting in the second half of 2012.
More information can be found on www.raiderz-europe.com.
Seth Iorio
CEO | Frogster Interactive Pictures AG | Managing Director and COO | Frogster Online Gaming GmbH
Seth Iorio assumed the role of Managing Director and COO at Frogster Online Gaming GmbH at the beginning of October 2010, taking over responsibility for the technical and customer-focused areas of customer care, community management, payment and fraud management, localization, programming, and IT. In January 2011, he was appointed to the executive board of Frogster Interactive Pictures AG and has held the position of CEO since 1 January 2012. Seth Iorio is also a member of the executive board as COO at Frogster’s parent company Gameforge AG.
Prior to his start at Frogster, Seth Iorio, who holds a diploma in business management, was VP Business Development and authorized representative responsible for Customer Communications and Marketing at Gameforge. In 2000 he founded Rabbit Software AG which he led as CTO. Following this, he was active as an IT consultant for companies such as Victoria Versicherung AG and as project leader for United Internet.
Tobias Haar
Member of the Executive Board | Frogster Interactive Pictures AG
The supervisory board appointed Tobias Haar to the executive board of Frogster with effect of January 1, 2012. In this position, he is responsible in particular for the activities of the foreign subsidiaries, licence contracting, and the legal and administrative business areas. Tobias has led the joint Legal Department of Frogster and Gameforge since September 2011 as General Counsel. In addition to his positions at Gameforge and Frogster, he is Vice Chairman of the Executive Board of G.A.M.E., the German Computer Game Industry Association in Berlin. The legal graduate, lawyer and legal informatics specialist specialises in national and international economic and IT law as well as mergers and acquisitions and recently coordinated the legal and administrative aspects of the takeover of Frogster by Gameforge. He came to the Gameforge group in 2008, after many years of professional experience as a lawyer in a leading international law firm as well as in the private sector.
Dominic Scheve
Vice President Finance | Frogster Interactive Pictures AG | Managing Director and CFO | Frogster Online Gaming GmbH
Dominic Scheve came to Frogster in 2006 holding a university diploma in business administration. After completing his postgraduate degree as Master of Business Administration (MBA) successfully, he works as Vice President Finance at Frogster Interactive Pictures AG since spring of 2009. As of October 2010 Dominic Scheve has taken responsibility as Managing Director and CFO at Frogster Online Gaming leading the fields of finance and controlling.
