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MA investor relations notices

SpikeBlack

SpikeBlack

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Spike Spike Black
i do not understand any of that.
 
as i understand the important things is :

Profit before tax: (tSEK)
2006 : 14596
2007 : 18108
2008 : 12710
2009 : -1200
2010 : -17331

for me it looks like they have made a decision/change in 2009
what have hurt the playerbase.
As i remember that was the time lots of my ingame friends have left
the gam due to these chages :(
 
English translation of the pages from the 1st one. Hope it helps. Skipped formatting issues, but reading along the original PDF should help.

Shareholder Meeting May 19, 2011
MindArk PE AB (publ)
==================================
Programs
• Welcome
• Presentation of the Board and management staff
• Organization and management
• Market, Competition and Development
• Business model and partner relationships
• Key figures for the game which shows the development and trends
• Priority initiatives during 2011
• Multi-year 2007 - 2010
• Quarterly Development 2010-2011
• The valuation of similar companies
• Investor Relations - Information Policy
• Question
• Conclusion
==================================
Presentationer
• Fred Rosenthal, Chairman
• Urban Näsman Board
• Christophe Morvan Board
• Jan Welter Timkrans Director and CEO
• Ms Krogh Finance
==================================
Organization and management
MindArk PE AB
EU Support & Operations AB * AR Universe AB * Illunova Sa. de. Cv
==================================
Board work 2010 - 2011
• General information gathering - where is MindArk PE?
• Validation of business model and partner strategy
• Development of financial management and reporting
• Choice of PWC as a new auditing firm
• Follow-up of SEE - shop
• Focus on cash flow and financing
• Focus on growth with profitability
==================================
Facts in brief about the gaming industry:
• Growth in recent years-a total of 17 percent per year
• The industry expected sales - 84 billion USD in 1214 (Music 28 billion USD)
• Online Games (MindArks segments) & Mobile Game largest growth
• The evolution of technology (computers, networks, graphics, etc.) key driver
Market and competition
==================================
Market and competition
Online * Virtual Worlds * 3D Social Networks
(SEE DIAGRAM FOR CONTEXT)
Warhammer
EVE Online
World of
Warcraft
Age of Conan
EverQuest
Second Life
Twinity
IMVU
Active Worlds
Club Penguin
Habbo Hotel
Entropia Universe
==================================
MindArks greatest competitive advantage
(SEE DIAGRAM FOR CONTEXT)
Market and competition
Proprietary
platform technology
Leading in
micro-payments with
own "genuine" in-game
Economy
Advanced Graphics
Very strong
growth potential in
Planet Partner model
==================================
Business Model
(SEE DIAGRAM FOR CONTEXT)
==================================
Main Planets
Planet Calypso
Rocktropia
Next Island

Launching Very Soon
Planet Arkadia
Cyrene

Under Development
Beldacom
Pyxel Arts
Hollywood Inspired
==================================
Priority initiatives under 2011
• Launch of 'space ' to link plane concept
• Launch of the planets Arkadia and Cyrene
• Development of partnership model to speed up growth
• Project Mind banking mothballed
• Disposal of property in Dresden
• Internal efficiency with clear processes and responsibilities
• Cost and Financial Control
• Balance between customer driven and technology-driven development
• Focused development efforts that provide rapid ROI
• Preparations for the planned IPO
==================================
Finance - multi-year
Group (thousand) 2010 2009 2008 2007 2006
Net sales 50 796 66 386 66 625 69 709 59 038
Other income 12 747 15 594 12 948 0 0
Operating expenses -63 999 -65 568 -62 764 -47 234 -33 526
EBITDA -456 16 412 16 809 22 475 25 512
Items affecting comparability * -6 556 -10 329 0 -1 243 -9 000
Depreciation -9 316 -5 056 -5 246 -4 158 -2 961
Net financial items -1 004 -2 226 1 148 1 034 1 044
Income before taxes -17 331 -1 200 12 710 18 108 14 596
* Project Mind banking, profit-sharing fund, formerly Royalty Agreements

(SEE FORMATTED TABLE FOR CONTEXT)
==================================
Valuation methodology and approach

. Two Complementary Approaches For A Preliminary Valuation Of Mindark
. Listed Companies: Value Of Current Market Capitalization Compared To Expected Revenues And Ebitda For
2011, Taking Into Account Net Debt Position
. Comparable Transactions: Enterprise Value For Recent Transactions . Where Buyer Took Over Majority
Control Of Target . Compared To Revenues And Ebitda At Year Of Transaction . They Include A Control
Premium Estimated In Average At 25% Over A Minority Position / Share Listing Price
. Peculiarities Of Mindark Business Model (Mmorpg, From B2b2c To B2b, Real Economy�c) Requires To Extend
Comparison To Various Types Of Companies
Cluster Reason
A] Generalist Gaming Companies Developer / Operator Of Mmorpg
B] Apps Developer Developer / Operator Of Mmorpg
C] Mobile Gaming Developer Developer / Operator Of Mmorpg
D] Online Betting Operators Real Economy
E] Online Betting Enablers B2b Business Model
F] Pure Mmorpg Core Target But Size Of Cluster Limited
. Valuation Look At Range Of Valuation (Minimum/Maximum) And Focuses On Area Of Overlap To Define Best
Estimate (Median Preferred To Averages)
. Focus On Revenues Only, As Ebitda Multiples Sometimes Extremely High And Statistically Deviant Because Of
Strong Growth Of A Few Comparable, And Scarcity Of Publicly Available Information On That Aggregate
==================================
Key considerations for trade sale or IPO

. Clearly Defined Business Model: This Is All About Story Telling
. Top Line Growth: Revenues Remain Key Indicator In The Online (Gaming) Industry�c
. �cas Long As Scale/Volume Effect Is A Clear Cut Case: Two Quarters Of Positive Cash�]Flow On Recurring
Business Helps
. Develop A Financial Business Plan Over Five Years With Credible Assumptions
. Be Ready: Choice Of Financial Advisor To Prepare Documentation (Placement / Information
Memorandum)�c
. �c And Of Legal Counsel To Draft All Legal Documentation And Support Negotiation / Process
Handling
. In Case Of Ipo, Minimum Size And Minimum Float (25%) To Be Considered
. Approach Informally Listing Authorities / Would�]Be Buyers To Confirm Faisability Of Transaction
. Have Rock Solid Financial & Tax Reporting And Auditing Routines: Appointment Of Pwc Is A Positive Step
. Define Sell Strategy: Choice Of Stock Exchange (E.G. Nasdaq Omx) / Restricted Or Open Auction / Strike
Right Balance Between Confidentiality And Adequate Information To The Market
. Align Purpose And Objectives Among Shareholders: Rules Of Governance
==================================
Investor Relations

• The chairman has the ongoing responsibility
• Developed website "Investor Relations "
• Bringing forward the AGM
• Regular investor meetings, physically or by teleconference
==================================
 
Stratos said:
as i understand the important things is :

Profit before tax: (tSEK)
2006 : 14596
2007 : 18108
2008 : 12710
2009 : -1200
2010 : -17331

for me it looks like they have made a decision/change in 2009
what have hurt the playerbase.
As i remember that was the time lots of my ingame friends have left
the gam due to these chages :(
Click to expand...

Amen. CE2 = vu 10 = August, 2009. Taming removed, Shops broken (some still broken since the damn bugs keep coming back every time they fix them), etc.
 
and more important than shops broken from VU10 was the fact that many people's computers couldn't handle the upgrade(mine included). That forced me offline for nearly 2 years...=(
 
People forget that MA stopped updating EU 2 years before CE2 launched. They announced they'd sign the license in 2007 but from then on we really only had new items and graphic updates with a few minor tweaks thrown in.
 
Stratos said:
as i understand the important things is :

Profit before tax: (tSEK)
2006 : 14596
2007 : 18108
2008 : 12710
2009 : -1200
2010 : -17331

for me it looks like they have made a decision/change in 2009
what have hurt the playerbase.
As i remember that was the time lots of my ingame friends have left
the gam due to these chages :(
Click to expand...

According to the MA annual report, they have started gaining again now in 2011 due to cutting costs and deposits increasing :)

Also, they anticipated losing money due to the extra work needed during and after CE2 implementation and mentioned that the failure to restore missing systems has made deposit levels decline.
 
Yet 2010 was the year the mission system was introduced. The grind-a-thon mob killing never stopped as the players lept on the latest bronze / iron challenge :rolleyes:

If they'd kept the people who were paying for it all happy then they'd not have lost quite so much.

Plus they lost half their income with the Calypso split and sale.
 
Focused development efforts that provide rapid ROI
Click to expand...

space, with all those lovely motherships to sell to eager players / investors.
 
MA keep all the financials for themselves... but the highlevel numbers confirm what I expected. I would love to see the cash flow statement...
 
Nighthawk said:
According to the MA annual report, they have started gaining again now in 2011 due to cutting costs and deposits increasing :)

Also, they anticipated losing money due to the extra work needed during and after CE2 implementation and mentioned that the failure to restore missing systems has made deposit levels decline.
Click to expand...

I remember a half year report from the autumn where they said that there was an improvement during start of the second half? So I guess this did not really play out?
 
nahtanos said:
and more important than shops broken from VU10 was the fact that many people's computers couldn't handle the upgrade(mine included). That forced me offline for nearly 2 years...=(
Click to expand...



It was precisely for this reason I asked the MA to inform us in advance so that we could get to prepare to VU 10.0, they promised that they would do this and they did that 7 days before the new VU 10.0.:lolup::lolup::lolup::lolup:
 
remontoire said:
I remember a half year report from the autumn where they said that there was an improvement during start of the second half? So I guess this did not really play out?
Click to expand...



No surprise.......
 
 
The TEDx presention slides (or atleast some of them) are in the first pdf.
 
People also seem to forget that the global financial crisis hit at the end of November, 2008. Making 2008 the last profitable year for many companies.

2009 was a loss for almost all financials with many closing down.
2010 saw a rapid deflation of the US Dollar and a change in thinking regarding US currency as a reserve currency.
2011 has seen stability, but negligible increases.

MindArk, although it develops technology, is at its heart not a computer company, but a foreign exchange market. Its part of the financial sector. Seeing a financial company posting losses after November 2008 is not surprising.
 
Yet they did very little, if anything, to change that by making the players feel more secure in depositing money.

If you think the $50 your depositing is going to be gone in a week then you think twice about depositing it, you instead buy a normal game that you've got it forever and if it's on a console you can trade it in and get something else later on.
 
SpikeBlack said:
Yet they did very little, if anything, to change that by making the players feel more secure in depositing money.

If you think the $50 your depositing is going to be gone in a week then you think twice about depositing it, you instead buy a normal game that you've got it forever and if it's on a console you can trade it in and get something else later on.
Click to expand...

Exactly Plus they planned to fail when they priced L weapons with a high tt value thinking that players would always be able to pay the mu for them but after you bought the L weapon + mu + ammunition that equalled 50$ and it lasted a few hours. They over estimated players ability to pay.I have always been confused by their actions because they have pushed players towards the exit more instead of encouraging them to stay.GOOGLE-FACEBOOK-ENTROPIA All three are free but one fails to deliver for their customers the first 2 proved success has always come from huge numbers of people "using the product" for free. Entropia is of course opposite of the first 2 and in the end will fail unless they stop making the users pay so much just to play.
 
• Focused development efforts that provide rapid ROI
Click to expand...

They maximize their profits...means even after paying all the massive HOFs you see...they are gouging the rest of us. One good example is the 40ped charge to TP between planets....guess that's a good reason to postpone space travel..while we provide that "Rapid ROI" for them :broke:
 
Wow, MA posts losses during a world wide recession. Is anyone else actually surprised?
What I find surprising is that they left the lights on rather then shutting Entropia down for a few months to cut operating costs, lay off non essential staff and use half of what they had left to go into a major development/marketing marathon. This would have cut off income in the short term, probably pissed of LA owners. Some players would have quit. But then Entropia would have come back online with all the missing systems and probably none of the bugs with a small army of new players waiting for the (re)launch of Entropia.

Of coarse doing this ran the chance that they ran out of money before they had a working product to launch.

Azrael said:
They maximize their profits...means even after paying all the massive HOFs you see...they are gouging the rest of us. One good example is the 40ped charge to TP between planets....guess that's a good reason to postpone space travel..while we provide that "Rapid ROI" for them :broke:
Click to expand...

That actually gets divided by the hanger owners, or at least a good chunk of it does.
 
nahtanos said:
and more important than shops broken from VU10 was the fact that many people's computers couldn't handle the upgrade(mine included). That forced me offline for nearly 2 years...=(
Click to expand...

Other reasons for some leaving or not playing as much since VU10 that I think are worth mentioning is the change in 3rd person view game play and also that this game engine gives some a feeling of sea sickness.

Making matters worse for those effected are the bright screen wide flashing effects on some combat animations every second or two especially on mind force weapons such as Cryo weapons and power fist weapons that have been added, just to mention two examples, though there are others.

edit: I can hunt all day using a handgun or rifle in first person because the animation of the gun shooting is very small but on weapons like power fists and most MF weapons the flash animation extends out to the entire screen and it feels like I am staring at a strobe light. The blurr effect which now seems to be used more also causes me problems when it is repeated over and over, see power fists again.
 
Last edited:
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