Investment bank Goldman Sachs Group Inc yesterday called Eidos Plc’s first quarter results dreary, as the UK games software house reported a net loss up from 3m pounds ($4.8m) in the year ago quarter to 14.3m pounds ($22.9).
Eidos blamed the results on delays in shipping two new games, which caused net sales to slide to 16.8m pounds ($26.9m) from 25.8m pounds ($41.4) last time. However, both have sincebeen released and are selling well, Eidos said, adding that the three months to June 30 are typically slow in the games industry. Advertising and marketing costs also rose from 11.7% of revenues to 23.4% of revenues as the London company ramped up its brand awareness efforts.
CEO Charles Cornwall said in a statement that the rest of the year’s new releases were on schedule and the firm would remain on course to meet its growth targets set at the beginning of the year. Goldman Sachs concurred, saying it believed Eidos will achieve the bank’s full year estimates, and putting a 53.2 pounds 12-month share price target on the firm. Yesterday Eidos closed up just under half a percent at 32.27 pounds per share.
