Press Releases
Frogster secures Extension of the License Term of its main Cash Cow
Update on Shareholder Pool and on Frogster Asia | Successful Launch of the third Chapter of ‘Runes of Magic’
Berlin, 28.05.2010:
Frogster Interactive Pictures AG, international publisher of massively multiplayer online games with headquarters in Berlin and subsidiaries in Berlin, San Francisco and Seoul, has secured an extension of the license term from 5 to 8 years per an agreement with the developer and licensor of its main cash cow, the internationally successful massively multiplayer online game ‘Runes of Magic’. In the opinion of the management, this increases the shareholder value directly and notably.
Update on the Pool of Shareholders
The leadership of the shareholder pool has informed Frogster that that continuative talks with the interested buyer with the highest price indication of 20 to 23 Euro per share have not lead to coming closer. The potential buyer with the now highest bid has indicated a price of 18 up to 20 Euro per share and made the point that the price may be adjusted upward, if the due diligence should run positively. Today, the pool leader will ask the pool shareholders on whether they intend to sell the shares committed to the pool or a smaller number within this price range. The pool shareholders are requested to make a quick decision on whether the pool is to enter into more intensive negotiations with the potential buyer. In the event that the pool shareholders decide in favour of that, the management anticipates that shortly the already prepared due diligence will be performed shortly and afterwards negotiations on the exact terms of the transaction between potential buyer and shareholder pool will take place. Should such negotiations not be taken on by the shareholder pool or run fruitlessly, the pool will disband per June 30th as planned.
The Frogster management continues to take on a neutral position in the matter. An anchor shareholder from the circle of potential buyers could be beneficial for the company. On the other hand, the announced price per share may be judged rather low, at least with regard to the existing research coverage of several renowned stock market analysts on the fair value and with regard to the impending extension of the product portfolio by the recently newly licensed next generation Browser MMO Games.
Update on Frogster Asia
The 64% Frogster subsidiary Frogster Asia Co. Ltd. could yet again not reach an agreement on further cooperation with the Dutch licensor Spellborn NV regarding the intended enhancements and publishing of the free to play version of the MMO Game ‘The Chronicles of Spellborn’ in Asia and is thus forced to close down the development studio and to dismiss all staff who dealt with the free to play version by order of Spellborn NV. Herefrom arises an extraordinary negative P&L effect for the subsidiary which will have a negative impact to the group result in a small to medium six digit Euro amount. The Frogster Interactive management had informed the public several times before about the uncertain outcome of the ongoing talks. On the other side, Frogster Interactive will reclaim the paid prepayments for the product of a seven-digit Euro amount while it is unknown whether the developer could make such a payment. The company has already fully written off all prepayments on Frogster’s balance sheet regarding the game so that no noteworthy negative impacts from the balance sheet are impending.
Frogster Interactive will finance the further, not yet break-even operation of ‘Runes of Magic’ in Korea and, as already announced, the market launch of the MMO Game ‘Ghost Fighter’ which was recently newly licensed by Frogster Asia from the Chinese market leader Shanda and is scheduled for launch in autumn. This funding will be done per a shareholder loan to Frogster Asia in a medium six-digit Euro amount. At the same time, the holding company will receive a call option on for the acquisition of further stakes in Frogster Asia at face value.
Successful Launch of the third Chapter of ‘Runes of Magic’
Frogster has successfully launched the second expansion of its virtual world ‘Runes of Magic’, the third chapter called ‘The Elder Kingdoms’ and has domestically and internationally received enormous attention by the games press. The box version put on the retail shelf by a partner company parallel to the download version has instantly conquered first rank in the GfK charts in its price category regarding sold units. According to the Frogster management’s opinion, there is a good chance to reach a new monthly revenue record with item sales in ‘Runes of Magic’ in May.
For 2010, the company has set the target to almost double revenues to more than 25m Euro. The reachability of this target is backed up by the growing monthly revenues during the first four months of 2010. The management holds on to its profit target of 1.60 Euro per share after tax for the year 2010.
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.
