CEO Comment
CEO Comment
2006 – A breakthrough year for MindArk and Entropia Universe
Market Development
”The entertainment of the future is here”, was the opening phrase in MindArks Annual Report for 2005. A claim that in truth has been fulfilled during the year gone by. The entertainment industry is today under great pressure to change, and the computer games industry is today larger than both the film and music industries.
With its unique mix of online entertainment, social interaction and e-commerce connected to a real economy in a gigantic three dimensional virtual universe, MindArk and Entropia Universe are world leaders and thus very well prepared for the changes in the entertainment industry currently under way.
Our unique product has also received great interest from several global actors on the international media scene, and MindArk are currently in negotiations with several potential partners.
Entropia Universe – The Virtual Environment
Entropia Universe originally began as a so called MMORPG – a Massive Multiplayer Online Role Playing Game. Today we consider the Entropia Universe as something much greater, more all-encompassing, like a virtual universe which expands continuously in step with MindArk’s expansion of the content in the virtual environment.
”Our users brought a total of 110 million PED into the virtual environment during 2006. The corresponding figure for 2005 amounted to 47 million PED, an increase of 134%."
—
Jan Welter Timkrans
The long term vision is to create a complete universe for its users, where all social, economic and entertainment needs are satisfied. This is to be packaged in a visual environment that completely imitates the real world in appearance and feeling. The technology for this visual feedback is not yet available today, but we continue to work at the forefront of technological development to reach that goal as soon as possible. Within a few years we believe that Entropia Universe will be a better universe to live than our own real one! As we see Entropia Universe continuing for a very long time to come, this is a very natural goal for us to adopt.
There are today over 575,000 registered users in the Entropia Universe. The software for the Entropia Universe is free and available for download from our website. We also distribute the software via CD discs and, in contrast to other software companies, we encourage our users to spread the program to other interested parties.
The most unique quality of the Entropia Universe is the real economy connected to the virtual environment. All economic transactions are conducted using the virtual PED currency, which has a fixed exchange rate with the US dollar. 1 US dollar equals 10 PED. MindArk guarantee the value of the virtual currency and all participants can, at any time, request a withdrawal of all or part of their PED funds. MindArk then pay the corresponding sum to the user in their own local currency.
Income Statement Development
The influx of new users during 2006 continued strongly. Our users brought a total of 110 million PED into the virtual environment during 2006. The corresponding figure for 2005 amounted to 47 million PED, an increase of 134%.
The good influx of PED is also reflected in the company’s income statement, which during 2006 continued to develop strongly. The result after depreciation, but before items affecting comparability entries amounted to 22.5 million SEK, and increase of 237% compared with the previous year.
New Share Issue in MindArk and the Coming Stock Market Introduction
The share issue during 2005 meant that the company received circa 900 new shareholders during the year. Through these shareholders an amount of 25 million SEK was supplied to the company. This addition of capital means that MindArk today have a very strong financial position and are therefore well equipped for the continued expansion of the concern.
The share issue also means that the company today fulfills its owner’s spread demands for an introduction on most stock market lists. It is my hope that MindArk shall fulfill its plans for a stock market introduction in the near future.
Development Under 2007
The first quarter of 2007 has begun strongly with a good growth in deposited PED. During the remainder of the current year we are counting on a very strong turnover and income statement growth.
The company’s old and new share holders are welcome to join a very exciting journey!
Gothenburg, april 2007
Jan Welter Timkrans
CEO and majority shareholder in MindArk PE AB (publ)
CEO and majority shareholder in MindArk PE AB (publ)