John Cassy 

Eidos loses game revenue

Computer games company Eidos yesterday warned revenues for the full year are likely to come in about £15m below expectations, writes John Cassy.
  
  


Accident-prone computer games company Eidos yesterday warned that revenues for the full year are likely to come in about £15m below expectations following delays to the release of four big titles.

The news knocked shares in Eidos, which last July launched a £53m rights issue to stabilise its finances, back 6.75p to a year low of 129.25p.

The creator of the Lara Croft franchise said the release of the games Hitman 2, Blood Omen, Championship Manager and Deus Ex had "slipped" from March to later in the year because their development had overrun.

Income from those games had been forecast to hit company accounts before the conclusion of the financial year ending March 2002 but will now be counted in the following period. Analysts expect losses for 2002 will now widen from about £5m to £8.5m.

The delays to the release of the games will be a blow to chief executive Mike McGarvey who has pleased many investors with the way he has restructured the group since taking over from Charles Cornwall last year.

However, analysts do not believe Eidos is returning to its dark days when it was laid low by a string of profit warnings and bad investments.

 

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