Once-bankrupt Atari returns to profit with decade-high revenue


FILE PHOTO: People play Atari arcade game "Pong" at the computer games fair Gamescom in Cologne, Germany, August 22, 2018. REUTERS/Wolfgang Rattay/File Photo

Video game developer Atari reported annual revenue of €56 million ($65 million) on Monday, its highest in more than a decade, as a strategy built on reviving old franchises and buying up studios pulled the Paris-based company back into profit.

Atari, the arcade and console pioneer that filed for bankruptcy protection just over a decade ago, is riding a broader industry shift toward mining back catalogues and nostalgia-driven franchises instead of costly new blockbusters, a trend it has embraced through a wave of studio and IP acquisitions over the past year.

Over the past year, Atari raised its stake in Swedish video game publisher Thunderful to 97%, bought Crossy Road-maker Hipster Whale for $29.3 million and the IP rights to five Ubisoft titles, including Child of Eden and Grow Home.

* CEO Wade Rosen said Atari was "reaching operational profitability for the first time in several years" and that he was confident it would continue to generate sustainable growth

* Atari's Games revenue rose 67.7% to €46.1 million, while Hardware revenue jumped 83% to €7.3 million

* Current operating income turned positive at €0.9 million, versus a €0.8 million loss a year ago, excluding Thunderful

* Net income excluding Thunderful was €0.1 million, compared with a €12.6 million loss last year; cash flow from operations was €11.0 million - Reuters

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