DGAP-News: Frogster secures Extension of the License Term of its main Cash Cow / Update on Shareholder Pool and on Frogster Asia / Successful Launch of the third Chapter of 'Runes of Magic'
(firmenpresse) - Frogster Interactive Pictures AG / Contract/Forecast
28.05.2010 08:30
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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Berlin, 28.05.2010: Frogster Interactive Pictures AG, international
publisher of massively multiplayer online games with headquarters in Berlin
and subsidiaries in Berlin, San Francisco and Seoul, has secured an
extension of the license term from 5 to 8 years per an agreement with the
developer and licensor of its main cash cow, the internationally successful
massively multiplayer online game 'Runes of Magic'. In the opinion of the
management, this increases the shareholder value directly and notably.
Update on the Pool of Shareholders
The leadership of the shareholder pool has informed Frogster that that
continuative talks with the interested buyer with the highest price
indication of 20 to 23 Euro per share have not lead to coming closer. The
potential buyer with the now highest bid has indicated a price of 18 up to
20 Euro per share and made the point that the price may be adjusted upward,
if the due diligence should run positively. Today, the pool leader will ask
the pool shareholders on whether they intend to sell the shares committed
to the pool or a smaller number within this price range. The pool
shareholders are requested to make a quick decision on whether the pool is
to enter into more intensive negotiations with the potential buyer. In the
event that the pool shareholders decide in favour of that, the management
anticipates that shortly the already prepared due diligence will be
performed shortly and afterwards negotiations on the exact terms of the
transaction between potential buyer and shareholder pool will take place.
Should such negotiations not be taken on by the shareholder pool or run
fruitlessly, the pool will disband per June 30th as planned.
The Frogster management continues to take on a neutral position in the
matter. An anchor shareholder from the circle of potential buyers could be
beneficial for the company. On the other hand, the announced price per
share may be judged rather low, at least with regard to the existing
research coverage of several renowned stock market analysts on the fair
value and with regard to the impending extension of the product portfolio
by the recently newly licensed next generation Browser MMO Games.
Update on Frogster Asia
The 64% Frogster subsidiary Frogster Asia Co. Ltd. could yet again not
reach an agreement on further cooperation with the Dutch licensor Spellborn
NV regarding the intended enhancements and publishing of the free to play
version of the MMO Game 'The Chronicles of Spellborn' in Asia and is thus
forced to close down the development studio and to dismiss all staff who
dealt with the free to play version by order of Spellborn NV. Herefrom
arises an extraordinary negative P&L effect for the subsidiary which will
have a negative impact to the group result in a small to medium six digit
Euro amount. The Frogster Interactive management had informed the public
several times before about the uncertain outcome of the ongoing talks. On
the other side, Frogster Interactive will reclaim the paid prepayments for
the product of a seven-digit Euro amount while it is unknown whether the
developer could make such a payment. The company has already fully written
off all prepayments on Frogster's balance sheet regarding the game so that
no noteworthy negative impacts from the balance sheet are impending.
Frogster Interactive will finance the further, not yet break-even operation
of 'Runes of Magic' in Korea and, as already announced, the market launch
of the MMO Game 'Ghost Fighter' which was recently newly licensed by
Frogster Asia from the Chinese market leader Shanda and is scheduled for
launch in autumn. This funding will be done per a shareholder loan to
Frogster Asia in a medium six-digit Euro amount. At the same time, the
holding company will receive a call option on for the acquisition of
further stakes in Frogster Asia at face value.
Successful Launch of the third Chapter of 'Runes of Magic'
Frogster has successfully launched the second expansion of its virtual
world 'Runes of Magic', the third chapter called 'The Elder Kingdoms' and
has domestically and internationally received enormous attention by the
games press. The box version put on the retail shelf by a partner company
parallel to the download version has instantly conquered first rank in the
GfK charts in its price category regarding sold units. According to the
Frogster management's opinion, there is a good chance to reach a new
monthly revenue record with item sales in 'Runes of Magic' in May.
For 2010, the company has set the target to almost double revenues to more
than 25m Euro. The reachability of this target is backed up by the growing
monthly revenues during the first four months of 2010. The management holds
on to its profit target of 1.60 Euro per share after tax for the year 2010.
Frogster Interactive Pictures AG, Tel. +49 (0)30-28 47 01-0
28.05.2010 08:30 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Frogster Interactive Pictures AG
Hardenbergstr. 9A
10623 Berlin
Deutschland
Phone: 030 / 284701-10
Fax: 030 / 284701-11
E-mail: frogster(at)ir-services.de
Internet: http://www.frogster-ip.de/
ISIN: DE000A0F47J1
WKN: A0F47J
Indices: Entry Standard Performance-Index
Listed: Freiverkehr in Berlin, München, Düsseldorf, Stuttgart; Open
Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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Datum: 28.05.2010 - 08:30 Uhr
Sprache: Deutsch
News-ID 21603
Anzahl Zeichen: 0
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Kategorie:
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