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Infogrames Losses Lessen As Further Restructuring Planned

Officials have released further details of French publisher Infogrames’ financials for the first half of the financial year, during which losses decreased from €45.4 million ($59.7m) in 2005 to €33.4 million this year ($43.9m) - but with sales down 14%.
Following the announcement of the company’s first half revenue results earlier in the month, officials have released further details of French publisher Infogrames’ financials for the same period, in which losses decreased from €45.4 million ($59.7m) in 2005 to €33.4 million ($43.9m) this year. The previously revealed results showed a 14 percent drop in revenues from €123 million ($157.5m) to €105.5 million ($135.3m) during the same period last year, with the company's top selling titles for the second quarter including Test Drive Unlimited for the Xbox 360, as well as multiplatform titles released as part of the company's popular Dragon Ball Z license. Gross margins for Infogrames were up to 41.9 percent of sales, from 34.3 percent at the same time last year. However, the net loss for the company increased from €31.1 million ($40.9m) to €41.8 million ($55.0m). Sales were overall down 14%, and those in Europe and Asia accounted for 63 percent of Infogrames’ revenue, with the remaining 37 percent attributed to North America. The results were shored to a degree by modest second quarter profits at U.S. subsidiary Atari of $300,000, with total revenues for the first six months up to $48.1 million and a net loss of $6.8 million – down from $58.0 million the previous year. Despite significant debt restructuring, which has seen the parent company selling off internal studios such as Shiny, Reflections and Paradigm Entertainment, the debt of the group is still put at €205.8 million ($270.7m), up €32.6 million ($42.9m) for the half year. However, a special shareholders meeting on November 15th – which had to be rescheduled three times due to low turnout – has approved a further debt restructuring plan that includes a rights offering of €74 million ($97.3m) prior to December 31st with shares priced at €0.15 ($0.20). There will also be a simultaneous distribution of bonus warrants to the company’s shareholders and financial backers and an exchange tender offer for OCEANE 2003-2009 bonds.

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