Funcom quarterly revenue suffers significant decline

The Secret World developer Funcom has posted financial results for its most recent completed quarter, reporting a major dip in revenue compared to the same period in the year prior.

During its Q4 – a three-month period ending on December 31st, 2013 – the MMO studio earned $4.3m in revenue, down from $7.8m during the matching quarter in 2012. Additionally, Funcom reported a $4.2m impairment on The Secret World and its underlying technology due to a decrease in projected revenue.

According to Games Industry, the company’s earnings before interest, tax, depreciation and amortization (EBITDA) were $233,000 – down from $2m in 2012.

Funcom has negotiated a new $5.5m loan with KGL Investments – the firm’s main shareholder. It has already received $3m of the total amount, with two more installments of $1.25m to follow in the first two quarters of 2014.

The studio is currently developing Lego Minifigures Online, an MMO expected to hit beta this summer.