London technology company Mind Candy, maker of the popular children’s game Moshi Monsters, announced on Thursday that it had suffered a massive financial loss in 2013.
The Wall Street Journal reports that the company posted a net loss of £2.2 million, a dramatic turn away from its previous good fortunes. By contrast, Mind Candy made £8 million in profit the previous year.
Mind Candy CEO Michael Acton Smith hinted at the poor numbers in October during an on-stage interview at TechCrunch Disrupt. “It’s been a tough time in the last couple of years,” Acton Smith said. “Revenues are not good, it’s a drop.”
Sure enough, revenues had fallen 35% to £30.5 million for 2013, another sign of the company’s problems.
Acton Smith admitted last month that the company’s mobile games hadn’t taken off commercially. Mind Candy is often accused of being late to tablet and mobile gaming. Its flagship product, Moshi Monsters, remains desktop-only, meaning that the company is missing out on the millions of children who only play game on their iPad or iPhone.
But Mind Candy is hoping to reverse its poor finances with a new game, World of Warriors. Acton Smith has described it as a “PG version of Game of Thrones,” and the app launched recently in the App Store. It’s a big gamble for the company, as there are already hints that its 2014 finances are looking bad. Chief Financial Officer Divinia Knowles said that revenue has continued to fall this year.
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