RealNetworks sees Q2 2010 game revenues slide 5% to $28 million

Matt Hulett installed as new boss for social and online focus

RealNetworks sees Q2 2010 game revenues slide 5% to $28 million
The games division of RealNetworks [NASDAQ: RNWK] reported sales of $28.1 million for the three months ending June 30, 2010. This is a 5 percent drop year-on-year.

Game revenue for the first half of 2010 was $58.4 million, down 6.7 percent year-on-year.

The company, which sells casual web games through portals such as, and, mobile games via carriers, and directly on the App Store, is currently undergoing corporate restructuring.

During 2009, its total game sales were $122.8 million.

New boss

As part of these changes, Real announced Matt Hulett was replacing John Barbour as the head of its games business.

"Given the urgent need to pivot our games business to social and online games, we think it is critical to have a leader based here in Seattle," said Bob Kimball, president and CEO of RealNetworks.

"Matt has the right combination of leadership skills, online business experience and support from the team to refocus our games business on the growth markets, including social games."

Real's overall Q2 2010 results, including its music and technology divisions, saw revenue of $88.9 million and a net loss of $25.9 million. This included restructuring charges of $11.9 million due to employee severance costs and loss on excess office facilities.

The company said it expects Q3 figures to be lower, primarily due to softness in game sales.

Looking to the future

"We made strong progress transforming RealNetworks during the second quarter," said Kimball.

"Our restructuring efforts are ahead of plan. In the first six months of the year, we cut more than $30 million in annualised operating expenses from our ongoing businesses. Now it is time to focus on growing the business by improving our sales and marketing of existing products and building a strong pipeline of innovative products for the long term."

Real had $313.2 million in unrestricted cash, cash equivalents and short-term investments at June 30, compared with $335.2 million at March 31, 2010.

[source: RealNetworks]
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.