ATARI: Atari Gaming repositioning on premium games
05 Luglio 2021 - 6:00PM
ATARI: Atari Gaming repositioning on premium games
ATARI: Atari Gaming repositioning on
premium games
Increased selectivity in free-to-play
games and the discontinuation of non-core activities, aimed at
refocusing resources on the market for premium games with higher
added value, generates an impairment loss of approximately EUR 5
million and a revision of guidance for the financial year ending
March 31, 2021
Paris, July 5, 2021 – Atari,
one of the world's most iconic consumer brands and interactive
entertainment producers, today announced the implementation of a
new strategy for Atari Gaming, the division covering games, VCS and
licensing, aimed in particular at devoting new resources to the
development of higher value-added premium games. This change in
strategy was adopted by the Board of Directors on July 1, 2021,
after conducting an in-depth review of the assets and opportunities
of the Atari Gaming division.
For Wade J. Rosen, CEO and largest
shareholder of the Group : ”Our intent with any
gaming experience is to provide accessible and joyful moments of
meaningful play. That’s the core of Atari and what binds our
history with our future. To that end, we feel that premium gaming
is better representative of this type of gaming experience and the
Atari DNA. Despite this new focus on premium gaming, we remain
committed to growing and expanding our successful free-to-play
games that we have in the market. These changes will impact our
2020/21 financials and will generate a 5 million euro write-off for
the financial year ending March 31st 2021. This reorientation will
give Atari a unique opportunity to be the bridge between the past
and the future of video games, and I look forward to driving these
changes.”
Atari intends to shift its video game portfolio
to premium games for consoles and PC. While the competitive and
marketing environment is weighing on the free-to-play business
model, five free-to-play games will be discontinued or sold (RCT
Stories, Crystal Castles, Castles & Catapults, Ninja Golf,
Atari Combat: Tank Fury). Successful games with a loyal user base
are not affected. In the area of premium games, Atari intends to
leverage its catalog of 200 proprietary games to build a strong
pipeline of premium games on all platforms. The first titles are
currently in development and the first releases are planned for the
financial year 2021/22. This offering will progressively strengthen
the content offered on the Atari VCS, whose commercial rollout is
ramping up (see press release of June 8, 2021).
In order to efficiently allocate its resources
to the success of this new strategy, Atari has decided to exit its
direct operations of Atari Casino in Africa. With respect to the TV
show business, the Group has taken the decision to focus on
licensing agreements and consequently to write down the assets
corresponding to TV shows previously produced by Atari. As we
approach the closing of the financial statements for the financial
year 2020/21, the global review of games and non-core activities
resulting from the implementation of the new strategy will generate
an impairment of approximately EUR 5 million. As such, Atari is
withdrawing its positive net result guidance for the financial year
2020/21. Excluding the accounting impact of these impairments
linked to the change in strategy, consolidated net income for
2020/21 would have been positive, as anticipated in the press
release of April 6, 2021. The annual results for the financial year
2020/21 will be published by July 31, 2021 at the latest.
Disclaimer:The realization of
the plans, and their operational budget and financing plan remain
inherently uncertain, and the non-realization of these assumptions
may impact their value.
About Atari:
Atari, comprised of Atari SA and its
subsidiaries, is a global interactive entertainment and
multiplatform licensing group. The true innovator of the video
game, founded in 1972, Atari owns and/or manages a portfolio of
more than 200 games and franchises, including globally known brands
such as Asteroids®, Centipede®, Missile Command® and Pong®. From
this important portfolio of intellectual properties, Atari delivers
attractive online games for smartphones, tablets, and other
connected devices. Atari also develops and distributes interactive
entertainment for Microsoft, Sony and Nintendo game consoles. Atari
also leverages its brand and franchises with licensing agreements
through other media, derivative products and publishing. For more
information: www.atari.com and www.atari-investisseurs.fr/en/.
Atari shares are listed in France on Euronext Paris
(Compartment C, ISIN Code FR0010478248, Ticker ATA), in Sweden on
Nasdaq First North Growth Market as Swedish Depositary Receipts
(ISIN Code SE0012481232, Ticker ATA SDB) and are eligible for the
Nasdaq International program in the United States (OTC -
Ticker PONGF).
Contacts
Atari - Philippe Mularski,
CFO
Calyptus - Marie Calleux Tel +33 1 83 64 61 57 -
pm@atari-sa.com
Tel + 33 1 53 65 68 68 – atari@calyptus.net
Redeye AB (Certified Adviser)
Tel:
+46 8 121 576 90 – certifiedadviser@redeye.se
This is information that Atari SA is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact persons set out above, on July 5, 2021 at 6:00pm
CET.
- CP 2021 07 05 Nouvelle-stratégie-gaming VEN