Eidos Plc, the London, UK computer games company best-known for the Tomb Raider adventure series, is negotiating an internet alliance in Europe to allow it to benefit from cross-promotion and advertising. This will replicate the deal earlier this month when it paid $55m for a 19.9% shareholding in Maximum Holdings Inc, a Los Angeles, California-based company that sells interactive games and music from its entertainment portal site (CI No 3,791).
In the six months to September 30, Eidos made a net loss of 26.9m pounds ($43.3m), up from a loss of 13.7m pounds ($22m) on revenue that declined 7.4% to 44m pounds ($70.8m). Chief executive Charles Cornwall says the results reflect the relatively few releases in the period and increased levels of development and corporate activity.
But with 14 titles due for release in the second half, twice the number in the same period last year, Cornwall is confident of hitting full year targets, with analysts predicting pre-tax profits for the full year of 53.8m pounds ($86.6m).
Eidos increased investment in product development by 47% to 22.1m pounds ($35.5m) and has been making strategic investments in games development companies as part of a strategy that allows them to retain most of the financial benefits of their work while benefiting from centralized support.
In the past year, Eidos shares have risen from 8.475 pounds to 48.8 pounds and to increase their marketability directors proposed to split them into five.
