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.
Runes of Magic
a world full of wizardry and adventure
With an extensive range of features Runes of Magic prepares to redefine the standard of free-to-play MMO games. Right from the launch Runes of Magic will convey its absorbing story in over 600 quests embedded in an atmospheric world. Players can choose from six main classes. Combined with a secondary class they dispose of 36 individual character classes over all. All characters possess unique skills with impressive combo attacks and can use mounts in the later stages of game play. A particularly attractive feature for guilds and players is the possibility to arrange their own virtual homes with individual furnishing. Thanks to an extensive crafting and reputation system, thrilling PVP as well as demanding dungeons and boss-monsters, no wishes remain unsatisfied. The Taiwanese developer Runewaker has developed Runes of Magic according to western MMO standards within a time frame of three years. The studio will provide new challenges for players every three to four months with free add-ons and updates.
More information can be found on www.runesofmagic.com.
Bounty Bay Online
Pirates, Merchants & Explorers
With Bounty Bay Online players enter the Age of Discovery, beginning in the early part of the 15th century. PC players are able to choose a career as a merchant, sailor, fisherman or pirate and make their online fortune on the seven seas. Thousands of discoveries on all continents of the world are waiting to be explored. Bounty Bay Online features a unique trade system based on supply and demand. With the exciting PvP system, strong guilds can take control of cities and choose for themselves how they are governed. In April 2008 Frogster has started a free-to-play server with an integrated item shop as an alternative to the subscription model, so that new sailors can now roam the Seven Seas without any fixed costs.
More information on www.bountybayonline.co.uk.
StoneAge 2
In the land before time
Primeval spirits, mythical beings and dinosaurs once roamed the lovingly animated world of StoneAge 2. But since the mysterious disappearance of the mighty dinosaurs, aggressive and evil creatures have taken over the world. Hunting, gathering and defending their soil now dominate the everyday life of the Manga characters. Players fan out from their individual housing to look for food and resources. Fortunately for them, the pets stand by their sides with their unique fighting and healing talents. Players will attentively take care of their virtual companions. With good upbringing and training some might even be used as mounts. Hobby Neanderthals can choose from almost 200 pets and even create their own unique creature as a loyal escort. Before StoneAge 2, the Japanese developing studio DigiPark had already successfully operated its predecessor in China, Korea and Japan with almost 10 millions of players.
More information can be found on www.stoneage2.de.
The Chronicles of Spellborn
What lies hidden, must be found
With The Chronicles of Spellborn players enter into an impressive online scenario with scenic landscapes, majestic cities and the remnants of an ancient civilization. Alone or with a party of allies, PC adventurers step into a huge fantasy realm consisting of varied shard worlds floating in the magic Deadspell Storm. Those who want to prevail in the grippingly staged combats of The Chronicles of Spellborn need to apply their mighty arsenal of spells, melee and ranged attacks skillfully. Battles with bloodthirsty creatures, hostile peoples and human opponents in PvP battles are waiting. An innovative and tactically challenging combat system with shooter-like controls and rotating skill deck provides a fresh breath of air for the dusty MMORPG genre. Thanks to the largely extended Unreal Engine 2.5 The Chronicles of Spellborn boasts stunning 3D graphics, spectacular effects and countless elaborate details.
More information, images and videos can be found on www.tcos.com.
Andreas Weidenhaupt
Chief Licensing Officer | Frogster Interactive Pictures AG
CEO | Frogster Online Gaming GmbH
Andreas is already wandering through virtual worlds since 1997. While still being a consultant in marketing strategies and brand development he built extensive knowledge on massively multiplayer online games. In 2004 he switched to the gaming business and founded OnlineWelten, a rapidly growing company. As Managing Partner he formed his start-up within a few years to one of the largest online gaming portals in Europe. In July, 2008 Yusho and Onlinewelten merged into Frogster Online Gaming GmbH.
Ralf Klöppel
CFO | Frogster Online Gaming GmbH
Working in the games industry since 1999, Ralf co-founded gamigo AG, which became a pioneer of mmo game marketing and servicing in Germany. Under his management the first German language MMO games were brought tio the market and commercially serviced in Germany. Ralf left gamigo to consult various games companies until he co-founded Yusho GmbH as a managing partner in July 2006. Yusho has since developed into one of the few and leading German companies to operation, servicing and billing of virtual worlds with its small expert team. In July, 2008 Yusho and Onlinewelten merged into Frogster Online Gaming GmbH.
Björn Koschin
CAO | Frogster Online Gaming GmbH
In 1999 Björn founded a technology company that centered around Linux networks until the Gamigo AG incorporated the company into its organization in 2000 as a technical specialist. The Gamigo AG is known as a pioneer in MMOG marketing and operations. With Björn's collaboration the first German-language MMOG's were operated in Germany and billed via the internet. During this time he acquired extensive knowledge of internet-based payment methods. He left the company in 2006 and founded Yusho GmbH with a small team of experts. Yusho GmbH developed into one of the few and leading German companies operating and invoicing virtual environments. In July 2008 Yusho and OnlineWelten merged to form Frogster Online Gaming GmbH.
Markus Melching
COO | Frogster Online Gaming GmbH
Markus Melching began his career in early 2000 at the company Uni-X in Osnabrück as IT specialist for system integration and application engineering. At the end of the year 2000 he moved to Gamigo AG where he worked as head of the engineering department for 5 years. As deputy CTO for Lars Koschin he was instrumental in the development of automated payroll systems. In 2005, Markus Melching founded the company Linuworx GmbH as a specialized service provider for the development and advancement of automated payroll systems for online businesses. In July 2006 he founded Yusho GmbH together with his partners Ralf Klöppel and Björn Koschin, which became one of the leading German companies for the operation and billing of virtual worlds. In July 2008 Yusho merged with OnlineWelten to Frogster Online Gaming GmbH.
Christoph Gerlinger
CEO | Frogster Interactive Pictures AG
Despite having left the games industry more than two years ago Christoph received a call from his former colleague and friend Dirk Weyel at the end of 2004, that a small computer games publisher with 11 staff was for sale. From 1996 to 1999 Christoph had co-built the German computer games business of Psygnosis, a Sony group company. 1999 he had co-founded CDV Software Entertainment AG took it public as MD in the CFO role in 2000 and co-managed it until end of 2001. Psygnosis and CDV were a big success during his time. So why not buy a small company and switch to the driver seat completely? Opportunities in the games hit business are large but so are the risks. Even more if you are a small challenger required to move ahead into innovative niches. Christoph bought the company beginning of 2005 together with Dirk, friends and family. Under the new name Frogster Interactive Pictures they have since focussed the company as one of the first in Europe on the growth market of virtual worlds, so called massively multiplayer online games. For the purists - Christoph was born 1967, has started his career with a "Banklehre" and holds a master degree in business admin from JW Goethe University in Frankfurt.
Dirk Weyel
COO | Frogster Interactive Pictures AG
Dirk started his career in the music industry before switching to the gaming sector as Product Manager at Psygnosis Germany in 1998. He subsequently established the specialist games marketing and localisation agency 4-Real Intermedia along with three partners. Already at this time, he dealt with the marketing of online games extensively. In early 2004, he became European Marketing Director for a French publisher of computer games. From this company the Frogster Interactive Pictures AG originated which Dirk founded with his partners. Since then he is responsible for Marketing, Sales and Business Development as Chief Operating Officer.
Sunny Park
CEO | Frogster Studios Co. Ltd.
Sunny has started his career in the advertising industry following a MBA graduation in the GSIS program at Yonsei University in Seoul Korea. Amongst others he worked in Russia and the USA several years. In 1996 he went back to South Korea and – being an enthusiastic gamer himself - joined the booming computer gameing industry at Lycos Korea, Actoz Soft. Before co-founding Frogster Studios he was Managing Director of the Global Business Division of Gravity, a leading global provider of massively multiplayer online games such as the blockbuster Ragnarok Online.
Lars Koschin
CEO | Frogster America, Inc.
Lars has an extensive background in information technology, including two years as Technical Director of Deltacity.NET GmbH, and over five years of military experience. Lars began his career in the interactive entertainment industry as co-founder of Gamigo, where he spent six years overseeing all technical and MMO Game related operations as Chief Technical Officer. He launched the first fully localized MMO Game in Germany (‘The 4th Coming’) and many more titles in Europe. In July 2007, he took over the CTO role at Curse Inc., a highly popular MMO Game portal. He managed Gameforge Productions Inc. in San Francisco from January 2008 to April 2009. His academic achievements include degrees form the Management Akademie of RWE and from TraiCen Technology School in Germany. He also holds the offical multimedia teaching license of the German government.
