Mobile: Gameloft Reports Sales Increase

Author: by Justin Davis, Modojo.com

European mobile developer and publisher Gameloft announced their financial results for the half year ended June 30, showing a significant increase over the same period in 2005. Revenue grew to EUR 30.4 million, compared to 20.5 million in the first half of 2005, an increase of nearly 50%. The company also reported that download revenues, the core of the company's business, nearly doubled. Gameloft announced that the sale of its interest in Internet site jeuxvideo.com generated a capital gain of EUR 20.4 million, leading to a net profit of EUR 14.7 million, compared to EUR 1.6 million for the same period the year previous. Without the sale of its interest in jeuxvideo.com, Gameloft would have been operating at a significant loss for the period, despite the growth in game sales. Operating expenses increased over 80%, due primarily to the rapid growth of the company. Gameloft reports that its headcount has doubled since the first half of 2005. R&D costs alone grew from EUR 11.8 million to EUR 21.1 million. The announcement notes that "the massive investments made from 2003 to 2005 have put Gameloft in an ideal position for the key end-of-year period and for the years 2007 and 2008," and has also revised its 2006 year-end guidance accordingly. Gameloft now forecasts sales of EUR 68 million, up from its previous forecast of EUR 65 million. Gameloft's fall 2006 line-up includes titles based on such licensed properties as Desperate Housewives, The O.C., Lost, and Open Season, as well as original IP.