The lyonnais studio Eden is also on the list

Published yesterday, the results of the French publisher of video games Infogrames were not reassured investors, on the contrary. The action plunged again showing a decline of 11.32 at the end. On the menu of the last fiscal year: a turnover (already published) cut of almost a third, operational and a net loss multiplied by 4.5! Impairment losses of assets for an amount of EUR 125.4 million explain the worsening of losses, but at the operational level, the year was not good either. The two games on which the Group had ("Path of Neo", Matrix, and "getting up" trilogy) were not reached, especially in the United States, expected sales.

If the situation of Infogrames in the United States explains mainly the new underperformance (see below), Europe and Asia is being properly held, prospects presented yesterday by Bruno Bonnell, the President, have not really reassured, in a context where the confidence of investors remains whole: the Group has not released a euro of profits since 1999. "This is not a good year, we are not going to deny it," he admitted at a meeting. Despite all the difficulties encountered by the company, Bruno Bonnell, who is also the co-founder, excluded any resignation yesterday.

Priority to the debt reduction Planner

Infogrames gave no forecast for the current year, but the Group hoped that restructuring carried out on the last year will bear fruit, particularly at the level of the gross margin. To do this, sales of lights this year titles ("Alone in the Dark", "Test Drive" and "Arthur and the Invisibles", inspired by the film will be Luc Besson at the end of the year), will be at the height. The market remaining difficult, particularly in the United States, and Infogrames still facing internal difficulties, nothing says that this will be the case.

Enmeshed in financial problems its net debt was EUR 173 million at March 31 last , Infogrames has investment capacity limited while the new consoles, and the investment they impose, arrive in force in the market.

"The priority is the debt", said Bruno Bonnell, which does not change it. Deadlines are returning soon: convertible bonds reach maturity in 2008, for $ 99.7 million, and 2009, for an equivalent amount. However, acknowledged Thomas Schmider, the Director-General, the company does generate enough cash by then to repay these bonds. Refinancing will be mandatory, and may take the form of a conversion of debt into shares, resulting in a new dilution of existing shareholders.

The Stock Exchange remains puzzled

Pending, the Group constantly renegotiate his deadlines with its banks and creditors and continued its disposals of assets: after the renegotiation of the licensing agreement with Hasbro and the sale of the studio Paradigm, it focuses on sales of development studios, such as Shiny in the United States, which should be assigned quickly. The lyonnais studio Eden is also on the list. The Group believes no longer have sufficient size, unlike Electronic Arts, or even the other French, Ubisoft, in order to integrate many studios within. It builds on a flexible operational structure to be able to rebound in the coming years. The market is still awaiting the first concrete results.