Atari posts highest annual revenue in over a decade on gaming revival

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.