Press Releases
Frogster purchases the remaining stakes in Frogster Online Gaming GmbH
Significant revenue growth from key product expected in March
Berlin, 23.03.2010:
Frogster Interactive Pictures AG, international publisher of massively multiplayer online games with headquarters in Berlin and subsidiaries in Berlin, San Francisco and Seoul raises its stake in Berlin-based Frogster Online Gaming GmbH from 90 to 100 percent.
Within the Frogster group’s geographically segmented holding structure, Frogster Online Gaming GmbH is the subsidiary in charge of the operative European business. Frogster Online Gaming runs the massively multiplayer online games ‘Bounty Bay Online’ and ‘Runes of Magic’ in Europe. Revenues with both ‘Bounty Bay Online’ and ‘Runes of Magic’ are growing strongly. Besides this, with OnlineWelten.com, Frogster Online Gaming runs one of the broadest reaching German MMO games and community portals. The management of Frogster believes the stake in Frogster Online Gaming does not only have a higher value than the purchase cost on the balance sheet, but also expects further value enhancement especially facing the exploitation of the success title ‚Runes of Magic‘ still being in its initial stage and facing the expansion of the user base. In 2009, Frogster Online Gaming has reached a seven digit profit and expects a significant profit increase for 2010.
Capital raise by 100,000 shares against investment in kind
Frogster acquires the shares from the founders and managers of Frogster Online Gaming (FOG), against issuance of 100,000 Frogster shares that shall be created by a capital increase from authorized capital stock against an investment in kind. Thus the increase of the stake in FOG by 10 percent stands against a dilution effect of the parent company’s shareholders of only 3.8 percent. As long as FOG contributes more than a third to the group result, the earnings per share net of taxes and minority stakeholder interests rise with the transaction. For 2010, the management expects a result contribution of over 50 percent.
Increase of the “Guidance” 2010
Consequently, the Frogster management raises their target for the 2010 profit net of taxes and minority stakeholder interests from 1.50 to 1.60 Euro per share. A so called “lock-up” was agreed for the new shares.
Game Developers Conference in San Francisco
At this year’s Game Developers Conference (GDC) from March 9th until March 13th 2010 in San Francisco, at which Frogster was present with an own booth, the company not only received a lot of attention for the MMO game ‘Runes of Magic’ but also had several appointments with developers about the licensing of interesting future MMO game titles. At the GDC two years ago, Frogster had succeeded in the initiation of the business towards the purchase of the ‘Runes of Magic’ license. Due to the success with ‘Runes of Magic’ on three continents, Frogster has gained a high reputation of a global MMO game publisher.
The first social game of Frogster which was presented at the GDC, ‘Runes of Magic – The Challenge’, has received a very positive feedback. Worldwide, ‘Runes of Magic’ is the first massively multiplayer online game (MMO game) which is expanding into the world of the strongly growing “social communities” in such a manner and with this, into a genre which attracts mass audiences. ‘RoM-TC’ is a so-called online trading card game in which the players can purchase card decks, collect and trade cards and compete with them against each other. Some cards also have functions, meaning values in the “associated” MMO game. Many trading card games achieve high revenues, even more so when connected to Facebook as planned here. Additionally, with ‘RoM-TC’ Frogster wants to gain a cross promotion effect with the main product ‘Runes of Magic’.
Current revenue development
For March 2010, a new, significant revenue growth is indicated for the main revenue source ‘Runes of Magic’, especially in North America. The management expects a new month record for the ongoing revenues from the virtual world. Moving forward, Frogster expects further increases of revenues from the roll-out into the Polish language version which was just launched, from additional game content, amongst others the siege battles between players’ castles which have been announced, and especially from the third chapter ‘Runes of Magic – The Elder Kingdoms’ which has been announced for May 2010, from additional large-scale marketing campaigns, especially in the USA and Korea and from improvements in functions such as the already announced enabling of impulse purchases within the game and the reduction of the data volume of the initial game download with a “slim client”.
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.
