Jump to content

'Profits plummet at Jagex' - Insidermedia


Yoko Kurama

Recommended Posts

 

Profits plummet at maker of RuneScape

Full-year revenues and pre-tax profits have plummeted at the UK's largest independent developer and publisher of online games.

But Cambridge-based Jagex, the maker of RuneScape, said it was positive about the future and praised the performance of its flagship game, adding that the team finished the year "on a high".

 

According to the financial accounts for the year to 31 December 2013, Jagex reported operating profits of £944,833, a significant drop from £9.7m the year before.

Gross margin has decreased from 45 per cent to 31 per cent, reflecting the bigger investment in talent during the year. Headcount increased from an average of 472 to 515 in 2013 financial year.

 

Pre-tax profits slipped from £9.8m to £968,123.

 

This was on the back of a decline in revenue - from £53.1m to £46.5m. Game income, which includes both subscription and microtransaction sales, fell from £52.3m to £46.1m, while advertising revenue declined from £735,118 to 332,496.

 

But other income, which includes revenue from advertising and the sale of merchandise, rose from £27,907 to £89,537.

 

A statement by company secretary R Hodgson said: "During the year the company focused on its two leading titles RuneScape and Transformers Universe and decided to pause the expansion of the Third-Party Publishing division to ensure the two main games were prioritised above other activities.

 

"Revenue decreased in comparison to 2012 but the management team is pleased with the current underlying game engagement and community sentiment going into 2014, which is stronger than the same period in the previous year.

 

"The landscape is continuing to be very competitive but the group is positive about the future, given the successful engagement with the RuneScape community and the upcoming launch of Transformers Universe in the coming financial year. The company made the decision to invest further in Transformers Universe and extend the launch date into 2014."

 

Source: Insidermedia

 

Interesting to say the least. The last time profits went down, Jagex came up with micro transactions. I wonder what they'll do this time.

  • Like 1
Link to comment
Share on other sites

Raise membership prices and stuff more promotions that people will actually buy down our throats until no one wants to buy those anymore? I don't know. The things they can do from this point onward to "up the ante" on Microtrasactions are too frightening to contemplate.

  • Like 1

hzvjpwS.gif

Link to comment
Share on other sites

This article title is incredibly alarmist/misleading, the profits went down sure, but the revenue only went down slightly.  All this means is they spent a ton more money in 2013 than on 2012, probably on new projects/more employees, etc.  The revenue was only a bit less.

 

Profit: 944.8k, down from 9.8m <- oh god everyone freak out

Revenue: 46.5m, down from 53.1m <- wait nvm

 

There's nothing to suggest that their current model is failing.  If anything, they impressively dodged some taxes.

 

Shame on this website for trying to make a story when there really isn't one.  Also confused as to why we have an article in November 2014 comparing 2012-2013, how about we wait a month so we can compare 2013 to 2014.

 

#econ101

  • Like 8

Want to help the Tip.It Crew? Visit the Website Updates & Corrections forum!

Link to comment
Share on other sites

rchawks incoming mark my words

  • Like 1

best drops (reasonably accurate/up to date): 1x Elysian Sigil (LS), 1x Arcane Sigil (cs), 4x Armadyl Hilt (solo at 100m, 100m, 50m, and 5m), 2x Saradomin Hilt (solo at 25m), 5x Draconic Visage (34m,1.2m,1.2m) and various cs/ls/ffa Nex splits.
Drygore Drops: 7 Longswords, 3 Maces, 3 Rapiers, 3 Off-hand Rapiers,  5 Off-hand Maces, 3 Off-hand Longswords

ROTS Shields: 12  Seismics: 16

Ascension Crossbows: 6  Spider Legs: 10

Countless Armadyl armour pieces, Saradomin amulets, Dragon Hatchets, and Fremenik Rings.
Range~Herblore~Construction~Constitution~Defence~Farming~Magic~Attack~Prayer~Strength~Summoning~Slayer~Mining~Dungeoneering~Firemaking~Agility~Magic Mastery~Summoning Mastery~Cooking~Smithing~Fletching~Thieving~Hunter~Woodcutting~Fishing~Runecrafting

 

Link to comment
Share on other sites

This article title is incredibly alarmist/misleading, the profits went down sure, but the revenue only went down slightly.  All this means is they spent a ton more money in 2013 than on 2012, probably on new projects/more employees, etc.  The revenue was only a bit less.

 

Profit: 944.8k, down from 9.8m <- oh god everyone freak out

Revenue: 46.5m, down from 53.1m <- wait nvm

 

There's nothing to suggest that their current model is failing.  If anything, they impressively dodged some taxes.

 

Shame on this website for trying to make a story when there really isn't one.  Also confused as to why we have an article in November 2014 comparing 2012-2013, how about we wait a month so we can compare 2013 to 2014.

 

#econ101

 

I was thinking this as well.

 

It was like the year parts of the web made a massive show and dance that jagex was in the red and made a lose not a profit, but when you looked the the actual figures they made one of the biggest profits for years, they just decided to re-invest it all with extra credit from investors into expansion. Which far from suggesting a failing that the scaremongers aimed for actually suggested quite a successful year with big profits and enough investor confidence to make such a big re-investment.

 

At the end of the day good revenue with a small profit is the most desirable figures we as players could see.

Good revenue means they are doing well and making the money they need to succeed.

Small profit means they aren't making an excess of money that investors/management are then skimming off for their own pockets, it means they are re-investing in the company - which is again desirable for players as it means new games, more devs and hopefully better content. 

  • Like 3

Plv6Dz6.jpg

Operation Gold Sparkles :: Chompy Kills ::  Full Profound :: Champions :: Barbarian Notes :: Champions Tackle Box :: MA Rewards

Dragonkin Journals :: Ports Stories :: Elder Chronicles :: Boss Slayer :: Penance King :: Kal'gerion Titles :: Gold Statue

Link to comment
Share on other sites

Wasn't the decrease in profit attributed to the multi-millions they shelled out in investment for new offices and all that stuff? Think that came up the last time we looked at their financial statement.

  • Like 2

6Ij0n.jpg

In real life MMO you don't get 99 smithing by making endless bronze daggers.

Link to comment
Share on other sites

Honestly I'm expecting the profits to be a lot higher for this year. The combination of Bonds (Although they came out Sept 2013, a full year of them for sale with a lot more uses (hi RuneFest)) is a lot of revenue, though building an entire new streaming room as an extension to the main office might have cut a fair amount out of that... We shall see whenever the figures are announced I guess.

yqe0mrU.jpg

^^My blog of EoC PvM, lols and Therapy.^^

My livestream- Currently: Offline :(

Offical Harpy Therapist of the Mad

[hide=Lewtations]

Barrows drops: Dharok's helm x2, Guthan's helm, Ahrim's top, Hood and skirt, Torag's hammers, Karils skirt, Karil's top, Torag's helm, Verac's skirt, Verac's Flail, Dharok's Platebody.

Dag kings drops: Lost count! :wall:

4k+ Glacors, 7 Ragefires, 4 Steadfasts, 4 Glaivens, 400+ shards![/hide]

Link to comment
Share on other sites

 

This article title is incredibly alarmist/misleading, the profits went down sure, but the revenue only went down slightly.  All this means is they spent a ton more money in 2013 than on 2012, probably on new projects/more employees, etc.  The revenue was only a bit less.

 

Profit: 944.8k, down from 9.8m <- oh god everyone freak out

Revenue: 46.5m, down from 53.1m <- wait nvm

 

There's nothing to suggest that their current model is failing.  If anything, they impressively dodged some taxes.

 

Shame on this website for trying to make a story when there really isn't one.  Also confused as to why we have an article in November 2014 comparing 2012-2013, how about we wait a month so we can compare 2013 to 2014.

 

#econ101

 

I was thinking this as well.

 

It was like the year parts of the web made a massive show and dance that jagex was in the red and made a lose not a profit, but when you looked the the actual figures they made one of the biggest profits for years, they just decided to re-invest it all with extra credit from investors into expansion. Which far from suggesting a failing that the scaremongers aimed for actually suggested quite a successful year with big profits and enough investor confidence to make such a big re-investment.

 

At the end of the day good revenue with a small profit is the most desirable figures we as players could see.

Good revenue means they are doing well and making the money they need to succeed.

Small profit means they aren't making an excess of money that investors/management are then skimming off for their own pockets, it means they are re-investing in the company - which is again desirable for players as it means new games, more devs and hopefully better content. 

 

 

Not to be nitpicking, but what great content have we gotten in 2013 that might drain a lot of the revenue? :s 2013 was known as the lackluster update year, so I don't think the revenue went to RuneScape significantly.

Link to comment
Share on other sites

Not to be nitpicking, but what great content have we gotten in 2013 that might drain a lot of the revenue? :s 2013 was known as the lackluster update year, so I don't think the revenue went to RuneScape significantly.

 

 

I don't think spending in 2013 should be analyzed for 2013's output.  I think you would see results of 2013's spending much more in 2014.  And I am extremely satisfied with 2014's output.

Want to help the Tip.It Crew? Visit the Website Updates & Corrections forum!

Link to comment
Share on other sites

Kind of funny that they announced an increase in membership cost (only if you stop being member for more than 14 days) today, fits nicely with the topic.

http://sign.tip.it/1/2/79/260/essiw.png

Retired item crew

I would like to be credited as essiw at the website update & corrections forum. Thanks!

Link to comment
Share on other sites

Hey look, Jagex heard you guys.  This is all your fault!!

 

Edit: whoops, didn't see essiw's post lol.

 

I wonder exactly how much they're going to jack it up.  It may be a good move though, if only to prevent people from unsubscribing for a while.  I hate it when my friends drop membership and then disappear from the game :S.

"Fight for what you believe in, and believe in what you're fighting for." Can games be art?

---

 

 

cWCZMZO.png

l1M6sfb.png

My blog here if you want to check out my Times articles and other writings! I always appreciate comments/feedback.

Link to comment
Share on other sites

With the ability to use bonds for members (maybe it'll settle at around 10-12m now) I don't see this affecting a lot of people that harshly.  Totally fine with the increase.

Want to help the Tip.It Crew? Visit the Website Updates & Corrections forum!

Link to comment
Share on other sites

(9m per right now)

Can I get paid for this month already pls. /s

 

They'll probably settle at 7.5m compared to the ~6.5m they're normally at. Really depends on the prices of them, and any rise happening currently is due to panic.

yqe0mrU.jpg

^^My blog of EoC PvM, lols and Therapy.^^

My livestream- Currently: Offline :(

Offical Harpy Therapist of the Mad

[hide=Lewtations]

Barrows drops: Dharok's helm x2, Guthan's helm, Ahrim's top, Hood and skirt, Torag's hammers, Karils skirt, Karil's top, Torag's helm, Verac's skirt, Verac's Flail, Dharok's Platebody.

Dag kings drops: Lost count! :wall:

4k+ Glacors, 7 Ragefires, 4 Steadfasts, 4 Glaivens, 400+ shards![/hide]

Link to comment
Share on other sites

Okay cool, I just wasn't sure if you actually bought one or you were quoting street prices.  Thanks :thumbsup:.

"Fight for what you believe in, and believe in what you're fighting for." Can games be art?

---

 

 

cWCZMZO.png

l1M6sfb.png

My blog here if you want to check out my Times articles and other writings! I always appreciate comments/feedback.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.