SEG Sci Ent.Grp.

    RNS Number : 5683Z
  SCI Entertainment Group PLC
  22 July 2008
   
    SCi Entertainment Group Plc
    Trading Update
    SCi Entertainment Group Plc, creator of some of the world's leading video game franchises under the Eidos brand, is today providing a
trading update following the end of its financial year on 30th June 2008. The Company will release its preliminary results for the year to
30th June 2008 on 15th September 2008. 
    Phil Rogers, Chief Executive said;
    "We have a clear strategy in place and have taken decisive steps to become a studio-led business with a focus on cornerstone franchises
and a flexible approach to distribution. There has been substantial change and the business is in good shape to take advantage of the strong
overall market for video gaming worldwide."
    During the second half of the financial year good progress has been made with the cost reduction and re-structuring plan outlined on
29th February 2008. In addition, during the period, the Company arranged a new debt facility of �25 million and raised �60 million before
expenses by way of a successful Placing and Open Offer of new shares to provide working capital.
    The Board has been strengthened with the appointment of two new Non-executive Directors, Kevin Tsujihara and Aaron Brown, representing
investors Time Warner and Thorson respectively, and the appointment of a new Chief Financial Officer, Robert Brent.
    Cost reduction and re-structure update
    * Annual operating costs reduced by targeted �14 million with associated one-off costs within the original �7 million re-structuring
estimate    * 25% reduction in Group headcount on target    * Sale of PROEIN, Eidos' distribution business in Spain, imminent    *
Substantial downsizing of Pivotal Games    * Transition of production services to Montreal on track    * Integration of North American
distribution with Warner Bros on track with full collaboration on upcoming title launches; leaner European distribution and new managing
director appointed
    Financial Performance
    The 2007/2008 financial year was one of restructuring and transition.  Revenues are expected to be approximately �134 million and losses
at the EBITDA level (excluding share based compensation and restructuring charges) are expected to be no more than �100 million. 
    The full year loss reflects both the significant write-offs made to the carrying value of the Group's development projects at the half
year and the decision, as previously announced, to delay a number of major product launches out of the second half into the next financial
year.  
    The Group ended the financial year with net cash of �28 million, which was ahead of internal projections due to prudent cash management
and the timing of payments under the restructuring programme. 
    In addition Age of Conan, for which Eidos is the co-publisher, was released in May and met its internal sales target of 1 million units
faster than expected benefiting the timing of cash receipts. The game has been the best selling PC title in the UK, USA, Germany and many
other territories.
    All financial figures are unaudited. 

    Game release schedule
    Game releases scheduled for the first half of 2008/09 include Tomb Raider Underworld. This next edition of the Lara Croft title is
scheduled to be released on 18th November in the U.S. and 21st November in Europe/ROW to capitalise on the run-up to the key holiday season.
Tomb Raider Underworld was one of the most eagerly awaited properties at E3, the major global video games show.
    In the second half of the 2008/09 financial year, our launch schedule includes Just Cause 2, Battlestations Pacific and a Batman game. 

    Ends 

    
 SCi Entertainment Group Plc                        Phil      +44 20 8636 3000
 Rogers * Chief Executive 
 Madano Partnership                                           +44 20 7593 4000
 Matthew Moth / Mark Way 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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