Austria's Funworld, makers of the popular Photo Play touchscreen games and terminals, has gone into the Austrian equivalent of Chapter XI to protect it from its creditors, while its management seeks refinancing.
Managing director Josef Ohlinger confirmed this week the company’s solvency problems, but said that he was optimistic that a solution could be found as he is currently in talks with potential investors.
“In the middle of September the situation will become more clear,” he said.
The reason for the financial collapse at funworld, he said, was that its principal product the Photo Play had run into difficulties in certain markets.
In Greece the financial crisis and resulting downturn in the economy had hit Photo Play incomes hard. And in Germany, one of the product’s principal markets, operators’ resources were stretched by changes in the AWP laws requiring heavy reinvestment to the exclusion of products such as Photo Play. A similar situation had existed in Italy. “In these situations, entertainment machines without payouts are in a difficult position.”
He emphasised that funworld’s diversifications were on track. The sports betting terminals business was operating up to expectations, the internet gaming platform funwin was now into many international markets, including Germany, Austria, Switzerland, Greece, Cyprus, Finland and the UK. In Italy the poker and sports betting functions were successful. “But these activities have not been enough to offset the losses on the other side of the business.”
Ohlinger stressed that equipment currently in the order-and-delivery process would not be affected and the network business will continue without interruption as will the supply of service and spares.
