Publisher Bam Entertainment has announced its results for its financial first quarter, ended September 30, showing significantly increased losses on falling revenues. Net revenues were down 19 per cent to $8.7 million, while net loss was $8.2 million – compared with a near break-even figure last year of $4000 loss.
The company has now announced a strategy which will see it refocusing on core successful brands, particularly family entertainment properties – such as its exclusive licensing deal with the Cartoon Network – and withdrawing from the core gamer market, which it will now enter on a much more selective basis and only with guaranteed AAA titles.
Several titles which were in development at the company have already been terminated, as they didn’t fit with this new strategy, and the development amortisation of some other titles has been accelerated. These cancellations and budgeting changes accounted for $2.3 million of the company’s costs during the quarter, according to Bam.
Further changes will happen by the end of the year, with a major review of development, distribution and publishing activities underway at the company. This is expected to cost up to $3.5 million in the coming quarter, but Bam hopes to realise significant cost savings in time for the start of 2003.
Rather than wait to see what the holidays bring to the market, we believe it appropriate to begin initiating corrective actions now, commented CEO Ray Musci. In its simplest form, our mission is to do fewer things better to ensure that our financial and human resources are specifically focused on those investments most likely to contribute to the company’s long-term success.