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Jagex 2012 Financial Report (Sort of)


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#41
Kaur
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Here is the full financial report if anyone's interested.

https://rapidshare.c...to 31-12-12.pdf

#42
Cat man
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This financial report is a perfect example of "Creative Accounting".

#43
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I wouldn't mind SOF and Solomons if my payment options didn't involve paying double for membership or spins.

Yes these fees exactly double the money I regularly have to pay.

bullshit.
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#44
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News flash: Jagex wants us gone. They want the players who whine about these updates out of their games to make room for the people who are willing to pay for spins and RuneCoins. They want us to quit so we'll stop giving the SoF bad press. They don't care about us; they care about their profits and we can see that they've gotten what they wanted.

You win, Jagex.

-Ethan


#45
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This financial report is a perfect example of "Creative Accounting".


Haha, they deffinitely seem to have suddenly started paying tax in the last financial year. :

profit before tax 2012: £9.7m profit before tax 9 months up to 31 December 2011 £9.8m so very similar
total amount of tax pad 2012: £2.5m total amount of tax paid 9 months up to 31 December 2011: £278k

It seems to have magically disappeared under 'expenses not deductable for tax purposes'

I can only assume all the bad press in the last 12 months about the likes of Amazon and Google made them decide to change their act.

#46
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News flash: Jagex wants us gone. They want the players who whine about these updates out of their games to make room for the people who are willing to pay for spins and RuneCoins. They want us to quit so we'll stop giving the SoF bad press. They don't care about us; they care about their profits and we can see that they've gotten what they wanted.

You win, Jagex.


Good grief, that reminds me of my Live Action Roleplaying days in the White Wolf World of Darkness setting. The game studio rebooted the game setting and I remember a lot of players saying things like this. I still remember a friend and longtime DM of mine called it "How to Piss Off Your Fanbase."

#47
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News flash: Jagex wants us gone. They want the players who whine about these updates out of their games to make room for the people who are willing to pay for spins and RuneCoins. They want us to quit so we'll stop giving the SoF bad press. They don't care about us; they care about their profits and we can see that they've gotten what they wanted.

You win, Jagex.

Are you serious? The bare minimum is as long as you play I don't think jagex gives a hoot. The core of their business is appeal and that starts with word of mouth. If you are a dedicated player and are already appealed to the game then things like SoF and SGS become the next step.



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#48
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Haha, they deffinitely seem to have suddenly started paying tax in the last financial year. :

profit before tax 2012: £9.7m profit before tax 9 months up to 31 December 2011 £9.8m so very similar
total amount of tax pad 2012: £2.5m total amount of tax paid 9 months up to 31 December 2011: £278k

I don't claim to be an accountant, nor to have much knowledge in the area, but wasn't the £9.7m figure a loss?

#49
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I don't claim to be an accountant, nor to have much knowledge in the area, but wasn't the £9.7m figure a loss?



No, your accountancy skills are just superiour to mine , I apolgise you are correct: I did not notice that bracketed values were negative

#50
Blyaunte
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I would LOVE to play this RuneQuest you speak of...


Actually - RuneQuest is an awesome game:

http://en.wikipedia.org/wiki/RuneQuest

Posted Image

Interestingly enough, it was Runescape's similrity to the original pen and paper role-playing game that drew my interest to it.

:lol:

This financial report is a perfect example of "Creative Accounting".


Haha, they deffinitely seem to have suddenly started paying tax in the last financial year. :

profit before tax 2012: £9.7m profit before tax 9 months up to 31 December 2011 £9.8m so very similar
total amount of tax pad 2012: £2.5m total amount of tax paid 9 months up to 31 December 2011: £278k

It seems to have magically disappeared under 'expenses not deductable for tax purposes'

I can only assume all the bad press in the last 12 months about the likes of Amazon and Google made them decide to change their act.

Actually, these Financial statements would appear to be a lot less “creative” if either of you understood how to actually READ a financial statement:
Posted Image
The numbers in brackets (9,869) represent a “loss”, not a profit. :rolleyes:

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#51
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So what was the explanation on page 2 for 18 people being let go and a 100% turnaround in profit?
Squeell's Deal and King Salomon's Warehouse?

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He just successfully trolled you with "courtesy" and managed to get a reaction out of you. Lol


#52
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So what was the explanation on page 2 for 18 people being let go and a 100% turnaround in profit?
Squeell Deal and Kings Salomons Warehouse?


Yes - that's got to be it, exactly - because goodness knows that there's absolutely no difference whatsoever between "correlation" and "causation" ... :rolleyes:

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#53
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So what was the explanation on page 2 for 18 people being let go and a 100% turnaround in profit?
Squeell Deal and Kings Salomons Warehouse?


Yes - that's got to be it, exactly - because goodness knows that there's absolutely no difference whatsoever between "correlation" and "causation" ... :rolleyes:

Care to expand on that?

#54
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So what was the explanation on page 2 for 18 people being let go and a 100% turnaround in profit?
Squeell Deal and Kings Salomons Warehouse?


Yes - that's got to be it, exactly - because goodness knows that there's absolutely no difference whatsoever between "correlation" and "causation" ... :rolleyes:

Care to expand on that?


Should I have included <sarcasm> tags? Or don't you really see from the financial statements as to where the losses and gains are attributed? :unsure:

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#55
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I thought the reason for Jagex's losses in 2011 were largely unrelated to runescape and instead were because of investing in the failed transformers game?

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#56
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Should I have included <sarcasm> tags? Or don't you really see from the financial statements as to where the losses and gains are attributed? :unsure:

Really I don't see it - the statements are very vague, and as I noted before I'm no accountant - so was looking for you to back up what you'd said.

One substantial gain on the previous year seems to be under the umbrella term "Game income", inclusive of microtransactions & subscriptions, hence my confusion and clawing for justification when you suggest microtransactions aren't the cause of the drastic increase in profits.

#57
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Well, this year, they have a 600k gain instead of a 14.9 million loss under "exceptional administrative expenses", and I remember there was something about paying several million to the investors in 2011 (which I guess the exceptional administrative expenses are) but I don't quite remember the reason why they paid such a huge sum in a single year....

I also found it interesting that they laid off a quarter (!) of their staff in customer support....

#58
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Should I have included <sarcasm> tags? Or don't you really see from the financial statements as to where the losses and gains are attributed?

Really I don't see it - the statements are very vague, and as I noted before I'm no accountant - so was looking for you to back up what you'd said.

One substantial gain on the previous year seems to be under the umbrella term "Game income", inclusive of microtransactions & subscriptions, hence my confusion and clawing for justification when you suggest microtransactions aren't the cause of the drastic increase in profits.


Ok – you will note that, without specifics, the loss from 2011 relates to “exceptional administrative expenses” costs which appear to have been written off for the fiscal period ending December 31, 2011. This information can be referenced under note #3 commencing on page 16 of the financial statements.

As has been pointed out before, it would appear that the corporation wrote off a huge (14M) loss (or losing venture) – more than likely some large-scale operation – in which they had invested a very large amount of time and money (i.e. “exceptional administrative expenses”), but no actual physical assets were involved. Someone mentioned that this may have been the Transformers project, but this could also be part and parcel of the other aspects of Jagex's operations. What was the "Space Game" they had been developing that never got off the table? I don't recall, but that may also be a contributing factor here.

It is also important to note here that, the fiscal period ending December 31, 2011, is only a 9-month period (commencing, it would appear, as of April 1, 2011) and would therefore not include, for whatever reason, the influx of “game income” from subscriptions which would have occurred when they brought back the Wilderness and Free Trade on or about February 1, 2011. I cannot be sure how much more this would have increased their bottom-line for the 12-month period ending December 31, 2011, but one could probably look into it.

As such, you’re seeing what appears to be roughly an average of approximately 800K increase in monthly earnings over the comparative fiscal periods, however, you’re not seeing the entirety of what the corporation earned, or may have earned, for the 12-month period ending December 31, 2011.

The employee related issue is further clarified under note #4 commencing on page 17. It is interesting to note that, despite the fact that they employed 18 fewer employees for the fiscal period ending December 31, 2012, they actually paid more in terms of employee wages and benefits during that fiscal time period than they had paid in the previous fiscal period – not surprising given the 3-month differential, but nonetheless significant.

Basically, the point is that previous comments made totally disregard the other various aspects which could affect these numbers. To simply state that microtransactions and a shuffle of employees “caused” such a big increase in the annual income of Jagex is entirely, if not deliberately, ingenuous, and aimed at creating an argument from a non sequitur.

There’s a lot more in play here than just that …

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#59
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Although Jagex’s games are free to play online, about a fifth of its customers pay for premium membership.

As a result, Jagex’s revenues were £53m in 2012, up from £32.9m in the nine months to the end of 2011, generating a pre-tax profit of £9.7m and a £10.9m increase in its cash holdings to £21.8m.


North America accounts for about two-thirds of those playing Jagex games, while a quarter are in the UK. Most of the remaining 10 per cent is split between other EU countries and Australia.


This is weird because I'd say if you polled people with access to HLF, you'd get a majority are European. Most of the Americans are total noobs or botters it seems.

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#60
crazycdcm
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Wow, accidentally lost my reply. How irritating, now I shall try to recall it..

Thanks for clarifying those points.

I still maintain that though not the sole cause, microtransactions played a significant role in the profitability of the company.

I had noticed the discrepancy between the time periods. Is there an innocent reason for this to be so?

It's interesting the point about employees. The average cost of an employee to Jagex in the 9 month period was £3442/employee/month. Raising in the 12 month period to £3831/employee/month. For anyone wondering, £129 of that difference represents the averaged salary-rise/employee/month.




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