Eidos warns over debt covenants

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The computer game developer Eidos warned on profits yesterday and admitted it could breach debt covenants with Lloyds TSB in June, after disappointing sales of the latest Lara Croft game over Christmas.

Eidos's shares fell 25 per cent after it said that full-year revenues would be £20m less than expected. The group changed its name from SCi Entertainment last month. After pre-tax losses for the full year rose from £30m to £136m, the chief executive, Phil Rodgers, said the company had completed its overhaul and was planning a return to growth. The company was pinning its hopes on Tomb Raider: Underworld, the eight in the series, released on 18 November, but the game met mixed reviews and sold 1.5 million copies, amid heavy discounting. Eidos said full-year revenue would be £160m to £180m.