A few years ago, we wondered aloud if Funcom was worth saving. At the time, the developer was limping along with just a few old MMORPGs and not much else to show, but three years and one hit game later, things seems to have changed dramatically for the better.
Last week, Funcom released its financial report for Q3 2018, and the generally positive tone can be summarized thusly:
“We’re happy to report that the Third Quarter of 2018 has the highest quarterly EBITDA margin in the Company’s history, and after this quarter we have already beaten last year’s profitability record … The Company is free of any interest-bearing debt as of 4 October 2018, for the first time since 2009.”
Overall revenue is up 25% from Q3 2017, and most of the good news is borne on the wings of Conan Exiles, especially for its strong debut on Xbox One. The free-to-play relaunch of Secret World Legends also gets some credit, though Funcom is realistic about its MMORPG prospects (Secret World Legends, Age of Conan, Anarchy Online) going forward:
“Revenue from the MMO games are expected to slowly decline over time due to their ageing. However, Funcom will continue to launch events and content releases to spur periods of growth.”
That “growth” will also be powered by Mutant Year Zero: Road To Eden and an upcoming shooter title, both of which will be premium games. The company has other games in development — six in total — but there’s no word yet as to their payment models.