Annual report MA

its a shame for planet calypso if they have to sell it, they have been an independent for only a little while.

Should be fine, if in doubt we will all have to pay 40 ped and hide on Rocktopia...

That was MA's orignal plan, each planet is a whole new game, if one goes bust the game still goes on.
 
The game is a gread concept but MA have no clue how to do business... it becomes more and more obvious with every Financial Report...


They should focus on the core business instead of buying Toys (castle :D) and starting a Bank :scratch2: the concept is great but not wise to get involved in so many none core crap while still busy getting things up and running.

Here in Holland we call that megalomania :silly2:

When everything is up and running smooth then maybe they can start thinking of other things.

Only my humble opinion :smoke:

 
its a shame for planet calypso if they have to sell it, they have been an independent for only a little while.

Should be fine, if in doubt we will all have to pay 40 ped and hide on Rocktopia...

That was MA's orignal plan, each planet is a whole new game, if one goes bust the game still goes on.

If you read what Marco wrote, FPC is having a better future than ever.
I would guess, they have somthing completely new in the making and with the sell out, that can afford the development on a comepltely other scale.
 
It will be interesting to see ... how they're going to handle withdrawals under the current circumstances.

Their website says withdrawals are processed within 30 business days, but wonder if that will be different now. I did a withdrawal on May 31st, and I'm keeping a closer eye on this one, as opposed to the ATH I withdrew in April 2008 which took only 20 days total, including business days and weekends. I haven't withdrawn everything from the game yet, but this will be interesting to see what may be expected going forward.

I wonder about those who withdraw larger sums on a regular basis if what others are saying about MA's cash-flow problems are that dire. FPC may have a brighter future according to Marco, but does the withdrawal money come from FPC or MA?
 
It will be interesting to see ... how they're going to handle withdrawals under the current circumstances.

Their website says withdrawals are processed within 30 business days, but wonder if that will be different now. I did a withdrawal on May 31st, and I'm keeping a closer eye on this one, as opposed to the ATH I withdrew in April 2008 which took only 20 days total, including business days and weekends. I haven't withdrawn everything from the game yet, but this will be interesting to see what may be expected going forward.

I wonder about those who withdraw larger sums on a regular basis if what others are saying about MA's cash-flow problems are that dire. FPC may have a brighter future according to Marco, but does the withdrawal money come from FPC or MA?

The withdrawals comes from MA.
 
Is the report from MA, FPC, or both? Maybe after separating FPC and MA money flowed from MA to FPC and making it look like MA lost a lot

The report have to parts, one for the "Group" which is MA+FPC together, and the other part is "Parent" the MA company only. The most intresting part to look at is the "Group" because that shows the total MA+FPC.

Edit:
to correct my self, the total also include two other MA owned comapnies, "EU Support & Operations AB" and "Ilunova SA de CV" in Mexico.
 
hmm thats a good point, im not sure.

i guess when you put the money in, it went 50/50 so money out should come 50/50 as well, one would think.

If MA was really in a bad way, we would start seeing people like NEVERDIE selling his assets and pulling his money out of the system as fast as he could...

lol (joking) erm, hopefully things with MA arn't to bad, and i guess if FPC sell thats not connected with MA anymore is it - unless they are pulling there money out of the system as well? (sorry, couldn't resist the speculation)

Its probally will just be a small hitch; something interesting to follow. At the end of the day its just a sever that keeps EU online, someone will step in to save the day. And if not, we will all have to add each other on MSN and move to the next game. entropiaforum will probally always be here for us to keep in touch as well, if EU falls it is a community of brilliant minded people that fall with it; things like the 'notes' event, showed us what we could do together if we all worked on the same thing, we have some amazing, kind people, great personalities and just a really pleasant social experience to partake in; I for one would hate to see that go. Eu is not what it used to be like, the 'glory days' as i call them have long pased, but it was the amazing friends and society mates i found that kept me here, and the knowledge that, like as we worked together night after night on the notes and the logs and the other countless pointless storys and events, untill we cracked them, that we can work together to re-build that truely great experience we came here and found. maybe this time, with or with out the virtual world we call entropia.

Hopfully with lol. Either way im proud to be apart of it with you guys through good times and bad.
 
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and starting a Bank

Well the main reasons for starting the bank was according to statements:
1) Bring back cash cards
2) Make deposits/depositing more secure for the players
3) Making it quicker to handle money transfers and such
 
i received a withdrawal today, let ma manage themselves i m sure they will do it very well.
 
These financials do not look good...

We got massive negative cash flow for 2009 and we got half of that negative cash flow again in the first half of 2010.

were is the data from 2010?

MA does not even have the funds for a third of the deposits in game... (rather nothing... )
correct

The only reason they are selling is because they need .... yes you guessed it "CASH".

The Management has clearly not got a grip on costs or they totally underestimated their revenues.

Negative cash flow started in 2008. From 2007 to 2008 there is a noticeable increase in cash paid to suppliers and personnel which decreased in 2009. Since number of employees in 2009 is higher than in 2008 this additional costs might be related to CE2 licenses and external development costs.

I don’t think that the management has not enough grip, they are simply investing and this needs cash. Hence they try to sell simply part of their assets, still obtaining a long term return from it.


The game is a gread concept but MA have no clue how to do business... it becomes more and more obvious with every Financial Report...

The concept might be good but we still don’t have a satisfying IG economy. There are too less new players and too less PED cycling between players with added player based value.

What I still dislike in MA’s financial reports is that deposited PEDs are turned immediately into sale. They do at least state now PEDs retained within the universe as liabilities. Btw, the same amount as their total assets.
 
Is the report from MA, FPC, or both? Maybe after separating FPC and MA money flowed from MA to FPC and making it look like MA lost a lot

The report has two sections, one for "GROUP" one for Planets. Look at Group. FPC is owned by MA so ultimately that's what counts. It's MA's Bank Account.

I don't. This is annoying news, but nothing unexpected tbh, as there's a huge world wide recession. I hope things will pick back up later this year.

This has nothing to do with the recession. The recession has led to slightly less deposts maybe but I would like to attribute them to all the cockups in 2009 before CE2 came. People got sick of the game and stoped depositing. The only economic factor I can see for sure is the 4. FX on USD but that is a problem MA should be hedging...

The Key issue is that MA have been spending more CASH since 2008 than they should have and with CE2 coming 2009 has just drained their cash reserves... MA should have counterreacted to this in some way or another and not keep paying for new initiatives and projects like Bank or Property in Germany...

It will be interesting to see ... how they're going to handle withdrawals under the current circumstances.

Their website says withdrawals are processed within 30 business days, but wonder if that will be different now. I did a withdrawal on May 31st, and I'm keeping a closer eye on this one, as opposed to the ATH I withdrew in April 2008 which took only 20 days total, including business days and weekends. I haven't withdrawn everything from the game yet, but this will be interesting to see what may be expected going forward.

I wonder about those who withdraw larger sums on a regular basis if what others are saying about MA's cash-flow problems are that dire. FPC may have a brighter future according to Marco, but does the withdrawal money come from FPC or MA?

This will be interesting indeed... let us know... I am not saying MA is bankrupt yet. I am just saying, they need to get to grips with their cash fast cos if they continue at this rate, then they will burn all their reserves tiill the end of 2010.



were is the data from 2010?

correct

Negative cash flow started in 2008. From 2007 to 2008 there is a noticeable increase in cash paid to suppliers and personnel which decreased in 2009. Since number of employees in 2009 is higher than in 2008 this additional costs might be related to CE2 licenses and external development costs.

I don’t think that the management has not enough grip, they are simply investing and this needs cash. Hence they try to sell simply part of their assets, still obtaining a long term return from it.


The concept might be good but we still don’t have a satisfying IG economy. There are too less new players and too less PED cycling between players with added player based value.

What I still dislike in MA’s financial reports is that deposited PEDs are turned immediately into sale. They do at least state now PEDs retained within the universe as liabilities. Btw, the same amount as their total assets.

There is a note in the Document talking about 2010 Cash flow. You are right about cash flow but that is something a company has to manage. Most companies do not go bust because of bad profit and loss accounts but because of bad cash flow management. You can put anything up as an Asset on your balancesheet as MA does with CE2. How do you value that? I discussed this in my Q2 2009 Analysis. MA just hung up all the development cost for CE2 as an Asset on their Balancesheet which they depreciate against future returns. Now this is the right thing to do in accounting terms but what this implies is that MA have paid a lot of cash to get this asset and they need Cash to run current operations. How does it keep balance ?

MA has simply ignored that their Cash outflow has greatly exceeded the cash inflow. Every kid with a savingsbox knows that this is not sustainable....

How can you keep running cash intensive investments if you can not balance it out with new revenues ? For a while you can hide those problems on your PnL statement but in the long run this is doomed for failure.

What MA are doing now is pull the emergency break... and the reason I am worried even more now is because any outsider looking at their BS could see it back in Q2 2009 that there was gonna be a problem.

If MA was a company I would have to assess, they would be on my black list big time... (maybe a buyout candidate as the concept is good and if you replace management... it would have potential).
 
...
You can put anything up as an Asset on your balancesheet as MA does with CE2. How do you value that? I discussed this in my Q2 2009 Analysis. MA just hung up all the development cost for CE2 as an Asset on their Balancesheet which they depreciate against future returns. Now this is the right thing to do in accounting terms but what this implies is that MA have paid a lot of cash to get this asset and they need Cash to run current operations. How does it keep balance ?
correct, and we have discussed this already when the semi-annual report of 2009 was published. We agreed that this is a thing one can do but serves only to have a better looking balance sheet.


MA has simply ignored that their Cash outflow has greatly exceeded the cash inflow. Every kid with a savingsbox knows that this is not sustainable....

I don't think that they have ignored it. They decided to upgrade and to risk. Now this risk becomes evident and they do react. Please consider also that investment into CE2 was not financed with borrowed capital.


How can you keep running cash intensive investments if you can not balance it out with new revenues ? For a while you can hide those problems on your PnL statement but in the long run this is doomed for failure.

all depends on how things are going. Atm investment into CE2 did not generate enough revenue but it is noticeable that sales in 2009 did not decrease (recession!). Not sure what numbers we do get for 2010 but MA is for sure an interesting opportunity for a takeover.

Coming back to sales. I'm active since some years, accumlated quite some PEDs in inventory (about 50k TT), but did not deposit in the last 2 years and I'm very seldome online.

The reason is simple. There is not that much that I can do atm. The game is still the same as when I've started. I do absolutely dislike gambling and hence the loot ideology MA implemented is not what fits to me. So the real risk for MA is that when more than before will start to sell out.

I for myself gave them quite some time to see if things do change. Atm the dollar is strong and hence to sell out is something to consider for those here in Europe. Nevertheless, I personally don't have any intentions to do it. I do still believe that virtual economies will have a future and atm EU is still one of the fascinating ones.

They should however reveal more details (besides eye candy) about what their intentions are and make a clear statement about the gambling aspects of EU. We do already know how loot is distributed and implemented in terms of payout, but we still don't know if there is something like a personal loot pool, and this is an important information not only for persons that dislike gambling.

EU will have only a future if there are enough new players. New planets might help but we do already have an example that this might not work as expected. There is for example absolutely nothing that makes me visit Rocktropia. I don't perceive it as something were I do get any added value from doing it. A simple travel skill that has a use would justify travel expenses eventually. Hence my conlcusion so far is, that we don't need addtional loot opportunities but simply added value. This was also a main issue here.
 
Be interesting to see the translation.

Swedish does have some very long words doesnt it?

"investeringsverksamheten" for example. :)

if you think that is long... try this one.
Nordöstersjökustartilleriflygspaningssimulatoranläggningsmaterielunderhållsuppföljningssystemdiskussionsinläggsförberedelsearbeten.

That is an actuall word... not that i ever hear anyone use it... i guess its a bit limited for everyday use :lolup:
 
...What MA are doing now is pull the emergency break... and the reason I am worried even more now is because any outsider looking at their BS could see it back in Q2 2009 that there was gonna be a problem.

If MA was a company I would have to assess, they would be on my black list big time... (maybe a buyout candidate as the concept is good and if you replace management... it would have potential).

But some in here would still say the sky's not falling.:rolleyes:
 
If the customers think the sky is falling and they act upon that, the prophecy will fullfill itself.
A lot business went bankrubt due to their customers got fed up and withdraw at the same time
A massive collapse , nothing can stop it.
Proably at best stick to the game, even it sux really bad.
 
If the customers think the sky is falling and they act upon that, the prophecy will fullfill itself.
A lot business went bankrubt due to their customers got fed up and withdraw at the same time
A massive collapse , nothing can stop it.
Proably at best stick to the game, even it sux really bad.

I guess it's now just a question of who's going for the lifeboats and who's going to loyally go down with the ship, eh...?
 


:laugh:

pot-kettle.jpg




:laugh:

The difference is, Nighthawk posts where he mostly enjoys himself, while you (and others, like Yrrrk) seem to love living in misery and spite and to drag others down with you, rather than move on to something you enjoy. Don't worry, reading through this thread, you have company. Misery loves company. :rolleyes:
 
The difference is, Nighthawk posts where he mostly enjoys himself, while you (and others, like Yrrrk) seem to love living in misery and spite and to drag others down with you, rather than move on to something you enjoy. Don't worry, reading through this thread, you have company. Misery loves company. :rolleyes:

On the contrary my friend, I have quite a grand time -here & elsewhere. I'm hanging on here simply waiting for new management to take over. And it seems like yes indeed the best days for this game truly ARE ahead: When MA finally folds and the whole shebang is taken over by a real company. And what a great day for MMOs that will be.

Viva La Revolución! :headbang:

:handgun::proof:
 
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Aside from the occasional Mr. T commercial MMOs aren't marketed.

This is 100% pure and utter bullox.
No offence, but it is. Afternoon TV is peppered with MMO ads at certain times of the year. Off the top of my head; WoW, FFIII, GW and even GW2 (teaser) have had ads in my country in the last 2 years.
If they're playing ads in my tiny country of 4mil people, I'm certain they're playing elsewhere.
Not to mention the thousands of posters and billboards for the various more-popular MMO's that are spattered over walls all through my city....




ps: personally I think the report is good news and I'm excited about the IPO!


[edit]Furthermore, you'd have to be disconnected to not have been witness to the flood of IMVU, WoW, FlyFF, Rakeon, etc etc... ads everywhere. I mean seriously, EU has to be the least advertised game I've ever been involved in. A handful of records doesn't constitute a marketing campaign.
 
A big gratz to MA for surviving the financial crisis!

They have maintained their business, increased their employees, and continued further development and re-implamentation of the old systems.
Overall we the players should keep supporting our great game, which we make possible by our deposits. The game will continue to grow and I can't wait to see what surprises they have for us next.
Again well done MA, many RL companies dealing in RL activities failed, sacked staff and collapsed and MA survived.

:clap::grouphug:

From a business perspective, this is a great point. MA has survived one of the worst economical downturns in recent history. That's pretty impressive I would say!
 
Can anyone say what a 50/50 profit split actually means, or how it could be arrived at.

Deposits/Withdrawals go to MA, and they have the reserves to cover TT value.

Tax Income goes to Land Area Owners.

How can Profit be split between Calypso / Rocktropia, etc?

What rights would a buyer of Calypso actually have ?

A few months back (a year+ maybe?) the profit share was explained in slightly more detail. IIRC it's a 50/50 split of decay with the exception of the new profit share deal that's mentioned in this report.
I'm not 100% sure, but I do believe this was talked about.
 
This has nothing to do with the recession. The recession has led to slightly less deposts maybe but I would like to attribute them to all the cockups in 2009 before CE2 came.

:scratch2: "Payments from customers" were actually up SEK 2million. the assets on the balance sheet at only SEK 1million less than previous year. no dount theres creative accounting going on, really if we the player base are to read anything into the accounts we need a proper accountant/investor to explain the points in the document, because as far as i see people read and interpret what they want. otherwise we should just leave it to the real investors, one of which as mentioned is backing MA with $6m and others are apparently investing for their planets.
 
From a business perspective, this is a great point. MA has survived one of the worst economical downturns in recent history. That's pretty impressive I would say!

Survived so far you mean, the worst of it is still to come spread over ten or so years.
 
Could this explain why CND is being sold?
Cut your losses while you can?

hopefully no, i love the game.
 
Could this explain why CND is being sold?
Cut your losses while you can?

hopefully no, i love the game.

CND is privately owned. So it's up to Neverdie to answer that, not MA/FPC.
 
Hmm very interesting! :yay:
 
:scratch2: "Payments from customers" were actually up SEK 2million. the assets on the balance sheet at only SEK 1million less than previous year. no dount theres creative accounting going on, really if we the player base are to read anything into the accounts we need a proper accountant/investor to explain the points in the document, because as far as i see people read and interpret what they want. otherwise we should just leave it to the real investors, one of which as mentioned is backing MA with $6m and others are apparently investing for their planets.

lol.. This text is wounderfull it proves that i am a super good customer.:yay::yay::yay:
 
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