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
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.
