Atari reduces losses, but cash flow concerns

(CercleFinance.com) - On Monday, Atari reported an increase in sales and a reduction in its operating loss in the first half of the year, but also mentioned additional cash requirements, which weighed on its share price.


This morning, the video game group announced sales of 4.6 million euros for the first six months of its 2023/2024 financial year, which ended at the end of September, up 46% year-on-year, notably due to the integration of Nightdive Studios.

Its operating loss narrowed to five million euros, from -5.2 million euros a year earlier, although its net loss increased to 6.6 million euros, from -5.4 million in the first half of 2022/2023, due to interest paid on the latest convertible bond.

In its press release, Atari stresses that the deployment of its new growth strategy could require new financing needs, particularly in view of the current uncertain economic climate.

The company currently says it is considering (1) new loans from Irata, its main shareholder, or (2) a new capital raising, announcements which resulted in a 1.2% fall in the share price at the end of the morning on the Paris Bourse.

Copyright (c) 2023 CercleFinance.com. All rights reserved.