Social mobile game publisher Glu Mobile's losses widened from $1.2 million to $7.3 million during the quarter ending September 30, though its sales remained strong.
Social mobile game publisher Glu Mobile's losses widened from $1.2 million to $7.3 million during the quarter ending September 30, though its sales remained strong. Revenues were up year-over-year, from $15.5 million to $16.9 million, according to the company. During the quarter, games using original IP accounted for more than half of the above revenue, a first for a company that has traditionally operated on licensed product. "We are pleased with our strong third quarter results, especially in our ability to maintain momentum in smartphone revenue growth and simultaneously expand gross margins," stated CEO Niccolo de Masi, adding that the growth in its original IP "reflects the success of our product strategy." Smartphone revenues more than quadrupled year-over-year during the quarter: the $9.7 million generated represents a 306 percent growth over the $2.4 million reported a year ago. Glu's financial model during the quarter depended much more on micro-transactions and in-game advertising than it did during the period last year, and its freemium revenue growth reflected this: during this period last year, the company reported $565,000 in freemium revenue. This quarter, the company says revenues topped $8.1 million. The company recently purchased two major mobile developers, Griptonite Games and Blammo Games, both of which are expected to launch new freemium Glu titles next year.
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