City Interactive S.A. conference2011-08-29
City Interactive S.A. conference – Discussion on the growth strategy for 2012 and summary of the 1H 2011 financial results
City Interactive expects to release Sniper 2 in 1Q 2012, to be followed by Alien Fear and a war-based shooter in 2Q. These sales are to translate into dynamic improvement in the company's financial results for next year, with 2012 set to break records.
The first six months of 2012 appear quite interesting for City Interactive. The Warsaw-based company is preparing to release the long expected Sniper 2 for Xbox, Playstation3 and PC.
“This isn’t just a sequel. The new game will be based on the latest, ground-breaking CryEngine3 technology, allowing for enhanced landscape visuals such as waterfalls, trees, lost temples, ruins, etc. Technologically, it will be one of the best products on the market. We are currently working on fine-tuning the game and are taking our time to deliver a complete, best-in-class product,” said Marek Tymiński, Board President and main shareholder of City Interactive, at a press conference.
The first instalment in the Sniper series has sold 1.5 million copies to date and City Interactive expects overall sales to reach 2 million.
The first three months of 2012 should see another release – Alien Fear, a space shooter. This action game is to feature a sci-fi setting and horror theme. A WWII-era project is also set for release in 2012, anticipated as another significant City Interactive brand. City Interactive’s Stuart Black, a video gaming industry legend, is the lead developer. The game should hit the stores in 2Q 2012.
“It will certainly be a shooter with an interesting story line recalling classic war films – a real treat for fans of the genre. We are of course talking CryEngine3. This is bound to be a really solid product, I have no doubt about it. It will be comparable to Sniper 2,” Tymiński states.
City Interactive is officially declaring that their 2012 financial results will top 2010 figures, which means only one thing...
“The next year will record-breaking,” says Tymiński.
In 2010 the company generated PLN 89 million in revenue, with a net profit of PLN 26.89 million. At the end of the first six months of 2011 consolidated revenue reached PLN 43.22 million, a figure 50% higher than in the corresponding period last year (PLN 28.88 million). Earnings were comparable in both periods. EBIT increased by 5.85% y/y to PLN 12.48 million, whereas net profit decreased by 3.75% to PLN 10.11 million. So what are the predictions for the second half of the year?
“Plans for 2H include the 4Q release of Combat Wings. I expect this World War II flight shooter to sell 200-250k copies this year. No other releases are planned for the remainder of the year. The second half will be slower than the first, but we will end it in the black. Development-wise, however, this is not a crucial year for us,” Tymiński explains.
He noted plans concerning the company's further development as justification of the Board's recommendation that no dividend be declared following last year’s profit.
“The shareholders fully share our point of view. We have many ideas concerning our further growth, including the development of free-to-play online first-person shooters. This will be handled by our studio in Romania (Ed. note: the Romanian subsidiary has been registered today). We want the first product to be released in 2013,” Tymiński says.
Tymiński also added that the company may soon commission a significant project to an overseas studio. However, he stressed that this is still just a plan and that no further details could be disclosed.
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