Called New Jersey office, asked operator what was going on, she said she would give me to someone who could better explain the situation, transferred me to CFO Fred Powell message center and I had to leave a message.
I am very confused. On November 23, Angeliki said dividends were suspended. How can you say they are still going to be paid?
Angeliki Frangou, Chairman and Chief Executive Officer, stated, "We have experienced an extended period of weakness that is virtually unprecedented in our history, with the BDI average this year lower than at any time since 1986. As a result, we have adjusted our return of capital to our shareholders by initiating a share repurchase program and suspending our dividend payment. The share repurchase program entails a $25.0 million purchasing authority over a two- year period. The annual net savings will provide additional balance sheet strength and the opportunity to reinvest funds accretively."
Angeliki Frangou continued, "The decision to suspend dividends was a difficult one, as we have paid a dividend for 39 consecutive quarters. Senior management owns about 30% of the Company, so we are intimately aware of the consequences of our action, but feel that reducing our capital commitment and opportunistically redeploying cash toward our share repurchase program will be in our best long-term interests."
And what about the rest of the report, which doesn't look good, the upward movement is crazy.
"Sales of full games downloaded over the Internet and game adds-on like additional storylines or, in the case with mobile games, in-app purchases hit $1.1 billion in April, up more than 15 percent from this time a year ago, according to SuperData Research.
In their respective quarterly earnings reports earlier this month, big-name game makers Electronic Arts and Activision Blizzard yet again reiterated the industry's commitment to shift to sales over the Internet.
Of EA's $4.3 billion in sales last year, after some accounting adjustments, a record $2.2 billion came from Internet sales of both full games and add-ons. Sales from EA's growing library of titles for smartphones and tablets also hit a new record, ringing up $524 million for the year. Activision said a record 76 percent, or $538 million, of its total revenue came from sales over the Internet of full-game downloads and in-game adds-ons.
Before long, the sight of an eager game player heading to the local GameStop to purchase the newest title may be a relic of the past.