MindArk: Semi-Annual Report Jan - Jun 2013

Discussion in 'Entropia News' started by RAZER, Oct 3, 2013.

  1. RAZER

    RAZER Custom title ... uh ...

    A few days ago, Mindark released their Semi-Annual Report for the first half off 2013:


    It looks like they finally sold the castle, but are still at a loss. Subtracting the costs they had for the castle and SEE it looks like next year they could break even or even make a profit.

    So, to me it looks like an important year for MindArk next year as for the first time in a few years we can finally see how they are really doing without 'unrelated' costs.

    Further information:

    Attached Files:

    Last edited by a moderator: Oct 4, 2013
  2. how did you miss the part about Toulon being launched in December?
  3. RAZER

    RAZER Custom title ... uh ...

    Did not mis it, but seeing is believing, for me at least. But yeah it would be nice for sure, I think.
  4. Tass

    Tass Administrator

    This looks like the most interesting part to me and probably also the most relevant for us players.

    I think it's a good idea to improve current gameplay, accessibility, efficiency, ... I'd really like to see easier inventory management, better maps, consistent interface design, etc and of course a more diverse and deeper gameplay.

    But what does that mean for Taming, the "political" system, CLD land grab, ... ?
  5. Wistrel

    Wistrel Kick Ass Elf

    CLD land grab? Wassathen?

    As for Toulan, of course we will SEE if that happens in December ,-)
  6. What castle did they sell?
  7. NotAdmin

    NotAdmin Administrator

    The one they bought near Dresden a few years ago. It's known as the White Castle (Weissess schloss), or rather, used to, before MA painted it no-loot-yellow:

    [​IMG] WeissesSchloss.png
    • Funny Funny x 1
  8. Wistrel

    Wistrel Kick Ass Elf

    =D "no loot yellow"
  9. Wistrel

    Wistrel Kick Ass Elf

    They should make a model of it and sell it in Entropia =D
  10. Zya


    Pardon if this sounds naive; was MA using the castle as office space? :giggle:
  11. RAZER

    RAZER Custom title ... uh ...

    As far as I know they bought it to act as 'hotel' for guests and employees for the gaming convention in Germany. But the same year they bought it the convention was canceled indefinitely, so they kinda got stuck with it.
    • Thanks Thanks x 1
  12. MindStar9

    MindStar9 Floating in Space

    It might have been an investment Arch, and they might have wanted to use it as office space, but the whole thing didn't work out too well. I think the guys have more information about this one than I do.

    It would look nice a deep, royal purple with black trim to give it an edge. :tongueout:
    • Like Like x 1
  13. NotAdmin

    NotAdmin Administrator

    From the report:

    I just spotted something that made me rather uneasy in the report, though.

    Disclaimer: Keep in mind I'm no accountant.

    Their liquid assets (meaning money they can easily get their hands on (i.e. cash or money in a bank account) total 6 million.
    Their short-term liabilities (which in my mind reads as deposits currently queued) are 14 million.

    Their assets add up to a total value of 32.9 million. Their unconsumed user holding pledged assets (which I think means the total amount of PEDs in TT value is on players in EU) is 73 million.

    Uh oh.

    I just made two withdrawals. I'm suddenly thinking they might take a wee bit longer to arrive than I anticipated.

    (Someone who is better at finance, please share your insights?)
  14. Wistrel

    Wistrel Kick Ass Elf

    Also not an accountant but if I understand you right, (possibly not) your "uh oh" is about the fact that there appears to be ~ 33 million in real assets and 73million worth of ped? So if everyone wanted to withdraw they couldn't.

    If I understood you right (probably not) this doesn't actually concern me. I think the odds of more than half of those ped's being withdrawn suddenly are fairly low. Actually the ratio is massively high compared to the real life banks on which we all rely for our cash. I seem to remember banks are backed by didly squat these days. (Look up a documentary called 97% owned -

    I don't think the sky is falling... yet

  15. First of all, when you are going too judge if a company are going to be able "to pay their bills", you should look which type of assets could be converted to money easy and in a short time. Normally this kind of assets is:
    1. Cash and bank holdings
    2. Receivables (assets that normally will be converted to cash within 1-2 month)

    If we look at the balance sheet in the report for the Group, we can see that they have 6035 ksek in cash/bank and 10 491 ksek in receivable assets, totally 16 526 ksek. This kind of assets is also called "current assets", assets that can be converted to cash within a year.

    The other types of assets is more difficult to sell or convert to money. Intangible assets 11 168 ksek, is the value of the gaming platform/EU software so that will not be much of help in paying the bills.

    Second, we must look at the liabilities, and the greatest attention on the short-term liabilities. Short-term liabilities is liabilities that the company must pay within one year, and a big part of them probably within one-two month. The short-term liabilities are 14 052 ksek.

    Third step, what is the difference between the "current assets" and "short-term" liabilities? In this case
    16 526 ksek - 14 052 ksek= +2 474 ksek "surplus". But the player holdings are 73 261 ksek. Maybe you start to see the "problem" if the players want to withdraw their money......

    MA normally are financing the players withdrawals with the money other players are depositing, but if you see the operating profit, that is the loss of -6 231ksek for six month, you see the second component of the problem. They don't make any profit/money from the game, they are loosing money, make the situation even worse because they need to finance a loosing business. So i'm not surprised if withdrawals are taking a bit longer.

    At the same time, the income statement is not as bad is you think when you first look at it.
    Why not?

    1. Some of the cost are depreciation on intangible assets, around 3 000 ksek. That cost will not cause any cash outflow, just a lower value on the intangible assets. And when the intangible assets reach a value of 0, this cost will disappear. (if they don't add more of them)

    2. We know they took a lose from the estate sell in Germany, around 4 000 ksek

    So if we remove this two items of total 7 000 ksek, from the 6 231 ksek loss, the core business actually had a small profit, even if it was small.
    • Informative Informative x 4
  16. Wistrel

    Wistrel Kick Ass Elf

    So if I read that right, to summarise there is about ~2000k freely available with which to finance withdrawals of which there could be a potential (but very unlikely) maximum of ~70000k. However the company are loosing around 1000k a month. This is largely attributable to liquidating assets at a loss though so in the future the company may start to turn a profit again.

    Conclusion, the company is essentially holding its head above the water with plenty of potential for growth if cards are played correctly. If everyone decided to with draw though they could bring the whole shooting match down like a house of cards. This is however is unlikely.

  17. NotAdmin

    NotAdmin Administrator

    Currently it seems people have been waiting for over 50 days for their withdrawals to commit. IMHO that's plain unacceptable. Depositing takes seconds, but 50 days for a withdrawal? Considering MA's only selling point is the RCE, that's just horrible.

    If a sufficient amount of players start hitting that withdrawal button, causing withdrawing to take even longer, it means the RCE aspect of the game would pretty much become a question mark rather than a given, and all we'd be left with is an okay-looking repetitive clickfest.

    Not good. I do hope there's some kind of a plan at MA HQ.
    • Agree Agree x 3
  18. That's why it think it's more than a "work load problem", MA know if they withdrawals start to "fail" it will be a huge problem for the whole concept. If it's only was a temporary work load problem they should av fixed it by now I my opitnion. So probably a cash problem, hopefully it's temporary. But this only enlightens a problem I have pointed out before, MA don't have our peds as liabilities and put away them on a bank account. A stable RCE economy should have done that.

    Also, the SEE settlement have obviosly created some cash problem, from the semi annual report:
    "Cash Flow and Liquid Assets. The cash flow balance has been greatly affected by the installment payments to SEE Digital Studios and SEE Virtual Worlds. The last installment will take place in October 2013"
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