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Interim Report for June 2011
w4ffl3
Member Posts: 36
http://www.aktietorget.se/NewsItem.aspx?ID_News=59627
So SV's financial report for the first half of the year is in... and...
During the second quarter of 2011, profit after financial items for -1,116,249 SEK (631 262) and earnings per share amounted to - SEK 0.02 (0.02).
"The number of monthly payments increased during the second quarter of 2011 compared with first quarter 2011."
Despite an increase in players over the period, they lost $175000 USD. Though, this is probably talking about more players than MO has now, as this report reflects January-June, so it doesn't take into account the likely loss of subscribers we've seen the past couple of months.
It makes you wonder how many players Dawn added, though I am inclined to think it wasn't that big of an increase, though, because later, it also states
"With our current cost structure, the Board of the need for an additional approximately 500 players to achieve break-even, a goal that we hope to achieve during third quarter of 2011."
They need 500 new players to reach break even. That's exactly what they said at the beginning of the year report, which makes me think they have the same number of players as at the beginning of 2011, as of June 2011.
Comments
From a financial point of view, it's very likely that their bills INCREASED and their player base only SLIGHTLY increased. Meaning that the preverbial line shifted upwards.
All in all, as an investor i'd "Black Flag" this company as a failure in progress. DO NOT TOUCH SV, Mortal Online looks like it'll either be trashed as a failure, or sold to an Asian company that'll put cash-shops all in it.
The Theory of Conservative Conservation of Ignorant Stupidity:
Having a different opinion must mean you're a troll.
I am pretty usre that the bills have decreased. They downsized the staff to a skeleton crew. Daddy better break open the checkbook. This pig has not made money since day one.
http://farm6.static.flickr.com/5056/5405334463_871abcda69_z.jpg
SV has also reduced staff in that time, its possible subsciption numbers are trending down while still maintaing the "500" break-even. Not sure how much faith I have in the original 500 statement.
"The number of monthly payments increased during the second quarter of 2011 compared with first quarter 2011.""
Im sure it did, with the whole double billing incident in the second quarter.
BAD NEWS FOR SV...
I win!!! LOL@U
Truthfully alot of old players came back to check out the Dawn hype (me being one of them). And I know alot of them are re quitting again. Like usual big hyped patch=big dissapoint.
http://farm6.static.flickr.com/5056/5405334463_871abcda69_z.jpg
It is interesting math where they only need 500 more subs to break even--If they lost 175000USD in 6 months, that's a loss of 30K a month. If a subscription is $20/mo, then they'll actually need 1500 more subscribers to break even.
We can assume they're assuming that some people will buy the game at about $40, but if you get 500 more subs, you get 10K USD, which means you need 20K in game sales, or 500 copies... Hmm... Why is that number familiar?
I think what SV is doing by saying "500 more subs to break even", it means they will break even for that month that they get new subscribers, since new subs have to buy the game. What they actually mean is "500 new subs, including selling the game to them". After that month, they'll only get subscription fees from those new subs, meaning they will be 20K USD in the hole every month, still.
That is highly suspect accounting, which is entirely unsurprising from someone who only tracks their game's progress using forum accounts.
I think Henrik is looking to sell this game to someone--he mentioned it before, and why else do you think they were at Gamescom without a booth?
from what i heard they paid off certain debts which is the reason why it appears so low, so esentially 500more subs would be the usual amount to break even but of course its probably jsut rumor since its coming from members of the player base. Also there was supposedly a purchase of the unreal ai pack from epic games, but the current network code shows no current change unless its running on the test server we cant be sure.
there are 2 types of mmo, imitators and innovaters.
You heard wrong.
That would have been clearly listed in the report.
I win!!! LOL@U
i didnt hear wrong this is what i heard, believe it or not up to you.
there are 2 types of mmo, imitators and innovaters.
There's nothing to believe or not. It's simply not true. Fact.
"Heard wrong"...as in misinformed
I heard SV was closing down in 2 days, see how that works? (EXAMPLE ONLY)
SV has never made money, listing operating expenses as an excuse is laughable. Starvault has lost $475,000 USD during the first two quarters of this year.
Starvault stock is only worth $ 1,178,436 USD, Mortal Online has lost over $800,000 USD since launch.
I win!!! LOL@U
Well, they actually did pay off some debts, from the financial report:
CEO Henrik Nystrom said in March / April, we conducted a rights issue, which brought in Star Vault approximately 3.6 million before issue expenses. Thus we were able to repay earlier loans taken to build 2011 on a sound financial base.
But, what they did was sell more shares of the stock to pay off these debts--I don't think the payment of these debts would be considered in the net loss. Especially since they still mention they need 500 more to hit breakeven
3.6 Mil SEK ($567,000 USD) just to clarify
Regardless, Mortal Online itself is still loosing money. By years end, Mortal Online will have cost Starvault more than its current value if this trend continues.
I win!!! LOL@U
Nobody in their right mind would buy this company with all their outstanding debts and terrible code.
I don't know when, but I feel the end is near. We will see.
"During the first half of 2011, net sales amounted to 1,519,290 SEK "
1,519,290 SEK = $240,000 USD
$240,000 USD / 6 months = $ 40,000 a month
$40,000 USD / $16.40 monthly fee = maximum of 2439 paying accounts per month. The actual number of accounts will be lower due to revenue generated my new copy sales.
Seems this report puts the whole 3000 vs 5000 player thing to rest.
I win!!! LOL@U
well i believe black opal will make some form of press release soon on what went on at gdc and if they have a new publisher yet so lets wait and see what happens. If they ever get that ai working and in i think 500 extra subs is certainly possible, although it is quite a stretch
there are 2 types of mmo, imitators and innovaters.
Yes That "500" number is crap. 500 people BUYING the game would cover costs that month, but they'd still be 800 people short the following month. SV is loosing $ 21,488 USD a month, @ ; $16.40 USD per, that's 1310 additional accounts needed. Based on my previous calculation above, that would require a 50%+ increase in the player base.
This is only to break even.
I win!!! LOL@U
Also take into account the double billings, and most of all the fact that many veterans are paying for 2 or 3 accounts.
These vets , so when 1 quits, it may be just 3 accounts leaving.
It will fail. Just a matter of when.
If your daddy can keep a company propped up, then it can keep "living" for an eternity, but there's a point where the wallet is empty and dry, and daddy finally realizes that his son is a moron. So I won't put a date on it, it could be another year, but I think given the way things are going it's going to be gone pretty soon because if Henrik is at GDC trying to get buyers, you know the signs are grim.
Implying it didn't already.
OH NO U DI-ENT
500 isn't even close to enough. The numbers speak for themselves, its not really open to debate.
I win!!! LOL@U
Right, MO didn't die yet, its only been in an artificial coma for the last few month...
Pretty key number on the last page of the report:
411,107 cash at the end of the quarter which I believe is in SEK which would be the equivalent of $65,000 or so...
That was at the end of June... given their burn rate... No wonder they are looking at options outside the company. So yeah, the same folks can keep saying "Population is fine" or "Population is booming", but once again... when we actually see the OFFICIAL NUMBERS... we can see the truth, and who was telling it. No censoring will change this basic truth... they continue to hemmorage money, even with the dramatically reduced staff. Maybe Black Opal will pop in here (publicly) and clarify any potential "grey areas" in this report for us. I won't hold my breath though.
All time classic MY NEW FAVORITE POST! (Keep laying those bricks)
"I should point out that no other company has shipped out a beta on a disc before this." - Official Mortal Online Lead Community Moderator
Proudly wearing the Harbinger badge since Dec 23, 2017.
Coined the phrase "Role-Playing a Development Team" January 2018
"Oddly Slap is the main reason I stay in these forums." - Mystichaze April 9th 2018
That would be a little over a months worth left.
I win!!! LOL@U
Well you know what this can officially to bed right?
The post Lumi had on the official forums saying the subs went from 2300 to 5000 in the matter of a couple months..
http://farm6.static.flickr.com/5056/5405334463_871abcda69_z.jpg