AJack10600
Elite
- Joined
- Jun 13, 2005
- Posts
- 2,732
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- Switzerland
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- SPU ¦ Smart Professionals United
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- Larios Semai Niva
Hi all,
Having asked for it in this thread https://www.planetcalypsoforum.com/...A-or-FPC-Half-Year-Financial-Results-for-2010 MA posted something a few days later on here:
http://www.mindark.com/press/financi...un2010_eng.pdf
So what to make of it. Here is my 2 Pec on it for those interested.
I am sorry but some of the content only makes sense in comparison to the older financial reports and so you need to have those in mind when you make comparisons. Unfortunately MA have never Published the Year end Reports for 2009 in English and I don't speak Swedish... make of it what you want.
Objectively
Profit
- Net Sales have gone down considerably both in comparison to first half of 2009 or compared to second half of 2009.
- Operating Expenses have more or less stayed stable even with the additional headcount, so MA are trying to save money somewhere. Salaries have definitely not increased.
- The overall negative Operating Profit is to be expected with reduced net Sales. This time around, MA can not Capitalize the Cost for the Cry Engine upgrade anymore. This is now affecting Profits. Depreciation now kicks in. Note that these Capitalized Expenditures should have been depreciated against future income (which is not happening ).
Balance Sheet
- Intangible Assets are coming down as the IT platform is depreciated.
- If the Parent Company's Financial Assets are 10M SEK and the Groups Financial Asset are 3M SEK, that leaves FPC with 7M negative Financial Assets .... I have no idea what this means. I would like some explanations. Is this obligations towards MA ? i.e Liabilities ?
- Total Equity of the Group is 50M, MA Equity is 38m, so FPC ( maybe + rocktropia parts ) = 12m SEK= 1.8m USD Equity Value !!! It is out of the question that FPC can "pay" MA 6m USD for it's share in the Company with it's own funds... An investor must be at hand. This will not be a Management Buyout... or I would like to know which bank is funding this...
And just for FUN: The Total Equity i.e. the Value of the Company is 63m SEK... The Total Value ( Note this is TT value !!! ) of the Items and PEDS of the users in the game is to be valued at 63M SEK !!!! Think about it... So if anybody realises that MA is going bust and if we all suddenly start to try to withdraw ... there is no way you would get a cent back... MA can not guarantee for any of your cash as there are no funds available.... no reserves.
Cash Flow ( My favourite )
Not surprisingly MA are not doing well here again... Although the statement might give you the impression that there was an increased inflow of cash, they do not show the outflow of cash by the users in the statement. I am not sure but it seems they are missing somewhere... Of course... because that would show that players have withdrawn more money from the game. If you read the introduction carefully though, you can see that: "End users net contribution for the first six months was 20.8m SEK compared to 32M SEK the previous year". This means that since last year the Cash received was 32m and net contribution was 32m, hardly any funds have been withdrawn. This year, 32m was received but 11m was withdrawn... If I am right on this assumption then I am worried... has Neverdie pulled out massive funds ?
Cash flow is negative anyhow... Bank balances are eaten up... Liquid Funds are just 1.2m USD... That is probably just about ennough to keep running daily operations... for now.
Overall
I don't have ennough details to give full explanations or to guarantee for anything. MAs reports are not very transparent.
What is more important to me is the few lines at the beginning of the reports which show the real state of the company:
- The German Property will be sold as soon as possible
- Sale of Subsidary ( 6m USD in funds ) MA is selling it's child...
- Revenue Share agreement: Translation, you pay me cash now and keep more revenue in the future. This is to fix the Cash flow hole MA has. MA has received 5.2M SEK in cash until June already and is part of the Operating Income !!! So it's probably part of Net Sales which is realy really worrying me anyway...
- Economic development: They realised they have done no marketing...
- Operating Costs have gone up... Why ? Why do you need that ? Explain...
- 20M new shares to be issued... Great, that beefs up Capital and we are back in Profit !!! Until the negative cash flow eats it all up again...
-Three of the old 4 Members of the board of directors have left... right.
SO... what to make of it... I leave it up to you...
I maintain my stance... FPC is a great concept a great idea, a brilliant game. I do not understand the way MA are doing Business, they are running a very risky strategy of very agressive growth. The concept of making money by being a service provider of a platform seems to have led to a decline in revenues of their former core business FPC and it does not seem to take off at all. Maybe there are things we don't know and there are future Incomes around the corner when new planet partners join. I can not tell.
At this rate, MA should maybe concentrate on supporting their Planet Partners to help them generate more revenue... does this mean decreasing cost so that more players will deposit and play ? Probably not... MA can not afford to wait until revenues would pick up again.
I would be most interested to see a detailed Financial Report for both MA and FPC but overall the picture is clear. MA is pretty much in the same situation as at the end of 2009. Nothing has changed in the last 6 Months... the thrend prevails. Road to death or to a high risk chance of a bright future ?
I hope MA will make the right decisions.... I don't want my game to go bust.
Having asked for it in this thread https://www.planetcalypsoforum.com/...A-or-FPC-Half-Year-Financial-Results-for-2010 MA posted something a few days later on here:
http://www.mindark.com/press/financi...un2010_eng.pdf
So what to make of it. Here is my 2 Pec on it for those interested.
I am sorry but some of the content only makes sense in comparison to the older financial reports and so you need to have those in mind when you make comparisons. Unfortunately MA have never Published the Year end Reports for 2009 in English and I don't speak Swedish... make of it what you want.
Objectively
Profit
- Net Sales have gone down considerably both in comparison to first half of 2009 or compared to second half of 2009.
- Operating Expenses have more or less stayed stable even with the additional headcount, so MA are trying to save money somewhere. Salaries have definitely not increased.
- The overall negative Operating Profit is to be expected with reduced net Sales. This time around, MA can not Capitalize the Cost for the Cry Engine upgrade anymore. This is now affecting Profits. Depreciation now kicks in. Note that these Capitalized Expenditures should have been depreciated against future income (which is not happening ).
Balance Sheet
- Intangible Assets are coming down as the IT platform is depreciated.
- If the Parent Company's Financial Assets are 10M SEK and the Groups Financial Asset are 3M SEK, that leaves FPC with 7M negative Financial Assets .... I have no idea what this means. I would like some explanations. Is this obligations towards MA ? i.e Liabilities ?
- Total Equity of the Group is 50M, MA Equity is 38m, so FPC ( maybe + rocktropia parts ) = 12m SEK= 1.8m USD Equity Value !!! It is out of the question that FPC can "pay" MA 6m USD for it's share in the Company with it's own funds... An investor must be at hand. This will not be a Management Buyout... or I would like to know which bank is funding this...
And just for FUN: The Total Equity i.e. the Value of the Company is 63m SEK... The Total Value ( Note this is TT value !!! ) of the Items and PEDS of the users in the game is to be valued at 63M SEK !!!! Think about it... So if anybody realises that MA is going bust and if we all suddenly start to try to withdraw ... there is no way you would get a cent back... MA can not guarantee for any of your cash as there are no funds available.... no reserves.
Cash Flow ( My favourite )
Not surprisingly MA are not doing well here again... Although the statement might give you the impression that there was an increased inflow of cash, they do not show the outflow of cash by the users in the statement. I am not sure but it seems they are missing somewhere... Of course... because that would show that players have withdrawn more money from the game. If you read the introduction carefully though, you can see that: "End users net contribution for the first six months was 20.8m SEK compared to 32M SEK the previous year". This means that since last year the Cash received was 32m and net contribution was 32m, hardly any funds have been withdrawn. This year, 32m was received but 11m was withdrawn... If I am right on this assumption then I am worried... has Neverdie pulled out massive funds ?
Cash flow is negative anyhow... Bank balances are eaten up... Liquid Funds are just 1.2m USD... That is probably just about ennough to keep running daily operations... for now.
Overall
I don't have ennough details to give full explanations or to guarantee for anything. MAs reports are not very transparent.
What is more important to me is the few lines at the beginning of the reports which show the real state of the company:
- The German Property will be sold as soon as possible
- Sale of Subsidary ( 6m USD in funds ) MA is selling it's child...
- Revenue Share agreement: Translation, you pay me cash now and keep more revenue in the future. This is to fix the Cash flow hole MA has. MA has received 5.2M SEK in cash until June already and is part of the Operating Income !!! So it's probably part of Net Sales which is realy really worrying me anyway...
- Economic development: They realised they have done no marketing...
- Operating Costs have gone up... Why ? Why do you need that ? Explain...
- 20M new shares to be issued... Great, that beefs up Capital and we are back in Profit !!! Until the negative cash flow eats it all up again...
-Three of the old 4 Members of the board of directors have left... right.
SO... what to make of it... I leave it up to you...
I maintain my stance... FPC is a great concept a great idea, a brilliant game. I do not understand the way MA are doing Business, they are running a very risky strategy of very agressive growth. The concept of making money by being a service provider of a platform seems to have led to a decline in revenues of their former core business FPC and it does not seem to take off at all. Maybe there are things we don't know and there are future Incomes around the corner when new planet partners join. I can not tell.
At this rate, MA should maybe concentrate on supporting their Planet Partners to help them generate more revenue... does this mean decreasing cost so that more players will deposit and play ? Probably not... MA can not afford to wait until revenues would pick up again.
I would be most interested to see a detailed Financial Report for both MA and FPC but overall the picture is clear. MA is pretty much in the same situation as at the end of 2009. Nothing has changed in the last 6 Months... the thrend prevails. Road to death or to a high risk chance of a bright future ?
I hope MA will make the right decisions.... I don't want my game to go bust.