CCP Financial Report: Shutting down San Francisco Office, Layoffs, and Losses

Today CCP Games released a review of its finances over the last six months to the public. The numbers pretty much speak for themselves showing CCP operating at a net loss for the year.  Key figures from the report are as follows:

• Revenue for the first six months totaled 36.5 million, subject to 36.7 million in the same period of 2013.
• Gross profit for the period amounted to USD 33.3 million, a decrease of 1.8% without same period of 2013.
• Expended research and development costs increased by 28 million compared to the same period last year primarily due to a substantial increase in amortization and impairment of certain capitalized development costs as a result of development of the World of Darkness project was stopped.
• Amortization of development costs, totaling 24 million without tax effects, is by far the biggest factor in the company return loss for the period up to 22.8 million.
• The company produced 4.5 million in EBITDA for the first six months year, down from 8.3 million in the same period of 2013. The decrease is attributable to the costs of notice provisions and departing employees increased costs to the first stage of new development projects.

As a result of CCP trying to “streamline” their operations many were sad to hear the closure of CCP’s San Francisco Office. Essentially laying off  Chief Marketing Officer David Reid, and Chief Financial Officer Joe Gallo. In response Hilmar Veigar Pétursson (Global CEO & Iceland CEO) released this statement:

“Stable revenue and margin from one year to show that our core business, publishing and development of the computer game EVE Online, is going strong. In April we took the difficult decision to quit development of the computer game World of Darkness and focus to the goal of developing games for one and the same game world; EVE game world. As part of our plans to combine and simplify our business in key operational company, we will soon say goodbye to two of the Company’s management. Joe Gallo and David Reid won a great job for the CCP and I wish them all the best for the future. “

The original statement can be found here (not translated), and a translated version (while not perfect) can be found here on Reddit.