Lara's firm battles on

Eidos profits have suffered

Superhero Lara Croft's best efforts have failed to save computer games company Eidos from suffering a sharp profits fall.

The London-based firm said operating profits fell 48% to £25.9m in the three months to the end of 1999, from £49.8m in the corresponding period the year earlier.

The results were below original expectations, but in line with a profit warning issued on 18 January in which Eidos said it would be hurt by disappointing Christmas sales and delayed product releases.

In the nine months to 31 December 1999, Eidos suffered operating losses of £11m, compared with £36.2m profits in the same period in 1998.

Chief executive Charles Cornwall said the results were in line with revised expectations. He said steps had been taken to strengthen the company's development and forecasting processes.

Twenty million Laras

Eidos faces a tough year, as existing computer games consoles are replaced by the next generation of technology, but Mr Cornwall said he was confident the quality and depth of its games release schedule would allow the company to meet those challenges.

"The board continues to believe in its business model and the positive prospects for the entertainment software market in spite of anticipated retail price pressure on the maturing platforms," he said.

In the nine months, Eidos released 15 titles compared with 13 in 1998.

The company's best-known title, the Tomb Raider series starring animated character Lara Croft, has now sold more than 20m units.

Eidos shares fell from their opening price of 741.5p to stand at 675p at 1300.