Blizzard Entertainment revenue drop s

Cork-based games company Blizzard Entertainment Ireland has reported a 17 per cent decline in pre-tax profit to €2.8 million last year

, down from €3.4 million the previous year. Revenue at the company plummeted almost 40 per cent from €38 million in 2012 to €23.2 million last year.

The company, which established its European customer support centre in Cork in 2007, is a subsidiary of American video game developer Activision Blizzard. That company is responsible for some of the world’s biggest-selling games, including blockbuster hits such as World of Warcraft, StarCraft and Diablo.

The company said it implemented a restructuring programme in 2012 which led to lower employee costs and thus a €14 million reduction in Irish operating costs last year.

Wages and salaries at the Cork arm of the company amounted to €30 million in 2012.

However, this figure was reduced to €14.9 million last year, following a decline in employee numbers from 675 to 563. After-tax profit fell 10 per cent to €2.6 million, compared with €2.9 million in 2012.

The pension charge for the year was €314,937, with €54,560 due by the company to the pension scheme at the end of last December.

According to the directors’ report, “The directors are satisfied with the performance of the company for the financial year.”

The report said: “The company continues to develop the portfolio of services provided to other group companies.”

The directors said “employment grants amounting to €2.5 million may become repayable” in certain circumstances as set out in the grant agreements with the IDA.

However, in their opinion such circumstances are “unlikely to occur”.

At the end of 2010, Blizzard employed 840 people in Cork. However, the company announced the loss of 200 jobs in 2012 as part of a global restructuring.

Its parent, Activision Blizzard, has forecast net revenues of $4.22 billion (€3.4 billion) for this year.

Activision reported revenues of $1.11 billion for the first quarter of the 2014 fiscal year, driven by the success of World of Warcraft and Diablo 3: Reaper of Souls.