RealNetworks sees 2010 game revenues drop 9% to $111 million

Q4 income rising though

RealNetworks sees 2010 game revenues drop 9% to $111 million
GameHouse, the game division of RealNetworks (NASDAQ: RNWK), reported its full year sales for 2010.

It had sales of $111 million, down 9 percent year-on-year.

The unit saw sales fall 11 percent in the three months ending 31 December to $27.2 million.

It's seen sales fall every quarter in 2010 as it's dealt with corporate reorganisations, as well as the wider changes happening in the casual web, mobile and smartphone markets.

This week, RealNetworks announced it was cutting 130 jobs, or 10 percent of the workforce, included shutting down its Mr Goodliving mobile development studio.

Bright spark

However, GameHouse's Q4 operating income was positive at $1.8 million, compared to a loss a year ago of $910,000.

Income, adjusted for EBITDA, was $2.5 million, up 131 percent compared to a year ago.

Overall, Real, which consists of technology, games and music divisions, had 2010 sales of $401.7 million, down 29 percent year-on-year.

Net income, adjusted EBITDA, was $13.3 million, down 66 percent.

The company had cash and short term investments of $334.3 million as of December 31, 2010, compared to $385 million 12 months ago.

The hard road ahead

"These results demonstrate the hard work and discipline managers and employees have exercised over the past year in transforming RealNetworks," said Bob Kimball, Real's CEO.

"In the fourth quarter, we generated positive operating cash flow, continued to reduce our operating expenses, and increased adjusted EBITDA both sequentially and year-over-year.

"Earlier this week, we took the final major step to restructure RealNetworks. We believe we have created a stable and efficient base upon which we can build for growth.

"We expect to utilise our strong consumer and mobile carrier distribution channels and innovative technologies and services to play a leading role in improving how people use and enjoy their digital media."

[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.