Atari Gaming repositioning on premium games

ATARI: Atari Gaming repositioning on premium video games

Elevated selectivity in free-to-play video games and the discontinuation of non-core actions, geared toward refocusing sources in the marketplace for premium video games with larger added worth, generates an impairment lack of roughly EUR 5 million and a revision of steering for the monetary 12 months ending March 31, 2021

Paris, July 5, 2021 – Atari, one of many world’s most iconic shopper manufacturers and interactive leisure producers, at the moment introduced the implementation of a brand new technique for Atari Gaming, the division protecting video games, VCS and licensing, aimed particularly at devoting new sources to the event of upper value-added premium video games. This variation in technique was adopted by the Board of Administrators on July 1, 2021, after conducting an in-depth evaluate of the property and alternatives of the Atari Gaming division.

For Wade J. Rosen, CEO and largest shareholder of the Group : ”Our intent with any gaming expertise is to offer accessible and joyful moments of significant play. That’s the core of Atari and what binds our historical past with our future. To that finish, we really feel that premium gaming is best consultant of this kind of gaming expertise and the Atari DNA. Regardless of this new concentrate on premium gaming, we stay dedicated to rising and increasing our profitable free-to-play video games that now we have out there. These adjustments will influence our 2020/21 financials and can generate a 5 million euro write-off for the monetary 12 months ending March 31^st 2021. This reorientation will give Atari a singular alternative to be the bridge between the previous and the way forward for video video games, and I stay up for driving these adjustments.”

Atari intends to shift its online game portfolio to premium video games for consoles and PC. Whereas the aggressive and advertising and marketing surroundings is weighing on the free-to-play enterprise mannequin, 5 free-to-play video games will likely be discontinued or bought (RCT Tales, Crystal Castles, Castles & Catapults, Ninja Golf, Atari Fight: Tank Fury). Profitable video games with a loyal person base will not be affected. Within the space of premium video games, Atari intends to leverage its catalog of 200 proprietary video games to construct a robust pipeline of premium video games on all platforms. The primary titles are at present in improvement and the primary releases are deliberate for the monetary 12 months 2021/22. This providing will progressively strengthen the content material supplied on the Atari VCS, whose industrial rollout is ramping up (see press launch of June 8, 2021).

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So as to effectively allocate its sources to the success of this new technique, Atari has determined to exit its direct operations of Atari On line casino in Africa. With respect to the TV present enterprise, the Group has taken the choice to concentrate on licensing agreements and consequently to write down down the property similar to TV reveals beforehand produced by Atari. As we method the closing of the monetary statements for the monetary 12 months 2020/21, the worldwide evaluate of video games and non-core actions ensuing from the implementation of the brand new technique will generate an impairment of roughly EUR 5 million. As such, Atari is withdrawing its constructive web consequence steering for the monetary 12 months 2020/21. Excluding the accounting influence of those impairments linked to the change in technique, consolidated web earnings for 2020/21 would have been constructive, as anticipated within the press launch of April 6, 2021. The annual outcomes for the monetary 12 months 2020/21 will likely be revealed by July 31, 2021 on the newest.

Disclaimer:
The belief of the plans, and their operational price range and financing plan stay inherently unsure, and the non-realization of those assumptions might influence their worth.

About Atari:

Atari, comprised of Atari SA and its subsidiaries, is a worldwide interactive leisure and multiplatform licensing group. The true innovator of the online game, based in 1972, Atari owns and/or manages a portfolio of greater than 200 video games and franchises, together with globally recognized manufacturers akin to Asteroids®, Centipede®, Missile Command® and Pong®. From this vital portfolio of mental properties, Atari delivers enticing on-line video games for smartphones, tablets, and different linked units. Atari additionally develops and distributes interactive leisure for Microsoft, Sony and Nintendo sport consoles. Atari additionally leverages its model and franchises with licensing agreements by way of different media, spinoff merchandise and publishing. For extra data: www.atari.com and www.atari-investisseurs.fr/en/. Atari shares are listed in France on Euronext Paris (Compartment C, ISIN Code FR0010478248, Ticker ATA), in Sweden on Nasdaq First North Progress Market as Swedish Depositary Receipts (ISIN Code SE0012481232, Ticker ATA SDB) and are eligible for the Nasdaq Worldwide program in the US (OTC – Ticker PONGF).

Contacts

Atari – Philippe Mularski, CFO Calyptus – Marie Calleux
Tel +33 1 83 64 61 57 – [email protected] Tel + 33 1 53 65 68 68 – [email protected]

Redeye AB (Licensed Adviser)
Tel: +46 8 121 576 90 – [email protected]

That is data that Atari SA is obliged to make public pursuant to the EU Market Abuse Regulation. The knowledge was submitted for publication, by way of the company of the contact individuals set out above, on July 5, 2021 at 6:00pm CET.

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