Gameloft 2015 Annual Results

Mar 21, 2016, 13:20 ET from Gameloft

PARIS, March 21, 2016 /PRNewswire/ --

Sales of €256.2M, up 13%

Gross profit up 16%

Current operating income of €2.1M

Net cash of €36.9M

Gameloft, a leading digital and social game developer, releases its annual results for the fiscal year ended December 31, 2015.


   
    (in millions of EUR)               2015   H2 2015   H1 2015*  2014*
    Sales                              256.2   128.7    127.4    227.3
    Cost of sales                      -38.6   -18.0    -20.6    -40.1
    Gross profit                       217.5   110.7    106.8    187.2
    R&D *                             -152.9   -73.0    -79.9   -141.6
    Sales and marketing *              -44.0   -23.2    -20.9    -29.9
    Administration *                   -17.4    -7.8     -9.5    -16.0
    Other operating income and
    expenses                            -1.1    -0.6     -0.5     -0.7
    Current operating income             2.1     6.1     -4.0     -1.1
    Stock-based compensation            -3.3    -1.7     -1.5     -3.1
    Other income and expenses          -10.3    -7.8     -2.5     -0.7
    Operating income                   -11.5    -3.4     -8.1     -4.9
    Financial income                    -4.1    -0.7     -3.5      6.7
    Net income before tax              -15.6    -4.1    -11.5      1.8
    Tax expense                         -8.6    -3.5     -5.0     -8.1
    Net income                         -24.2    -7.6    -16.6     -6.4

* To facilitate the interpretation of the Group's performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.

"Driven by the strong performance of our game services and regular launches of new titles, Gameloft's sales have increased by 13% in 2015. It is a solid performance that highlights the excellent work done by our teams and the quality of our franchises," states Michel Guillemot, CEO of Gameloft. "Our 2015 strategic plan, which translated to a global reorganization of teams and significant cost cutting measures, has started to bear fruit. The cost of this transformation, which affected almost 20% of the company's staff, including 850 positions closed, has weighed on the net income of the fiscal year but has allowed us to restore Gameloft's current operating profitability as early as the second half of 2015. Moreover, during fiscal year 2015 the company has completed the implementation of its integrated advertising agency, which is now operating at full capacity. In the early stages of a major development cycle focused on programmatic advertising, Gameloft has a new organization centered on the efficiency and creativity of its development teams and is structurally profitable."

Selected Financial Highlights and Metrics  

  • Fiscal year 2015 sales reached €256.2 million, up 13% year on year, and up 6% on a constant-exchange-rate basis.  
  • EMEA accounted for 30% of the company's annual sales; North America, 25%; Asia-Pacific, 30%; and Latin America, 15%.
  • Monthly and daily active users averaged 166 million and 21 million respectively in fiscal year 2015.
  • The 2015 gross profit margin stood at 85%, up 16%. It was 82% in 2014.
  • H2 2015 current operating income reached €6.1 million, up €10.1 million compared to H1 2015. The current operating profit margin in H2 reached 5%.
  • The operating income in 2015 of -€11.5 million includes a restructuring cost of €10.3 million. In total, the company closed 10 development studios from December 2014 to the end of January 2016, representing gross savings of approximately €35.0 million over a full year.
  • The financial income of -€4.1 million includes a one-off loss of €3.0 million due to the devaluation of the Venezuelan Bolivar.
  • Tax expense in 2015 reached €8.6 million, of which €4.7 million consists of withholding tax. The amount of unrecognized deferred tax reached €16.0 million at the end of 2015, compared to €8.2 million at the end of 2014.
  • The balance sheet structure of the company remains sound with a net cash position of €36.9 million on December 31, 2015, a slight increase compared to June 30, 2015.

Selected Product Highlights 

  • In 2015, Gameloft was ranked the #2 game developer in the world on iOS and Google Play by the number of games downloaded, according to the rankings from App Annie.
  • Gameloft's own franchises accounted for nearly two thirds of sales in 2015.
  • Gameloft released 16 new titles in 2015: Dragon Mania Legends®, Puzzle Pets, Immortal Odyssey™, Age of Sparta™, Dungeon Hunter 5, Battle Odyssey™, Ice Age® Avalanche, Magna Memoria®, Siegefall®, March of Empires™, Order & Chaos 2: Redemption™, CSI: Slots™, TRIVIAL PURSUIT & Friends®, Country Friends, Sniper Fury™ and Gods of Rome®.
  • In February 2016, Gameloft and GungHo, one of the largest mobile gaming companies in Japan, announced a strategic partnership, the first step of which is distribution in Japan of the game Disney Magic Kingdoms by GungHo teams.
  • Gameloft Advertising Solutions has recently concluded 10 partnership agreements with programmatic platforms enabling the company to multiply its access to advertising trading desks used by main global advertisers.
  • Gameloft Advertising Solutions successfully released over 1,000 advertising campaigns since its creation.

Financial and Business Outlook 

Gameloft will be hosting a dedicated Investor Session at its London offices on March 22 at 2:30 PM GMT during which the senior management team will detail its strategic plan for the company. The details of this strategic plan will be made public in a press release that will be distributed on March 22 before the market opens. A presentation of this strategic plan will be made available online on the company's website.      

The Group's first-quarter sales for 2016 will be published on April 28, 2016, after the market closes.

About Gameloft 

A leading publisher of digital and social games, Gameloft® has established itself as one of the top innovators in its field since 2000. Gameloft creates games for all digital platforms, and with a monthly audience of 166 million unique players offers advertisers a unique level of visibility and engagement through Gameloft Advertising Solutions. Gameloft operates its own established franchises such as Asphalt®, Order & Chaos, Modern Combat and Dungeon Hunter and also partners with major rights holders including Universal, Illumination Entertainment, Disney®, Marvel®, Hasbro®, Fox Digital Entertainment, Mattel® and Ferrari®. Gameloft is present on all continents, distributes its games in over 100 countries and employs 6,000 developers.

Gameloft is listed on NYSE Euronext Paris (NYSE Euronext: GFT.PA, Bloomberg: GFT FP, Reuters: GLFT.PA). Gameloft's sponsored Level 1 ADR (ticker: GLOFY) is traded OTC in the US.

For more information, consult http://www.gameloft.com

Auditing procedures on the consolidated accounts have been performed. Audit certification will be released after the annual financial report has been verified. 


   

    PROFIT & LOSS STATEMENT (KEUR)                   2015             2014*
    Revenue                                       256,175           227,279
    Cost of sales                                 -38,626           -40,105
    Gross margin                                  217,549           187,175
    R&D *                                        -152,932          -141,647
    Sales and Marketing *                         -44,046           -29,888
    Administration *                              -17,388           -16,032
    Other operating income and expenses            -1,108              -703
    Current operating income                        2,075            -1,095
    Stock-based compensation                       -3,273            -3,100
    Other income and expenses                     -10,279              -682
    Operating income                              -11,477            -4,877
    Cost of net financial indebtedness              1,885             2,783
    Exchange rate gains                            23,235            20,316
    Exchange rate losses                          -29,247           -16,441
    Net financial income/loss                      -4,126             6,658
    Net income/loss before tax                    -15,603             1,782
    Tax expense                                    -8,574            -8,136
    Net profit/loss (group share)                 -24,177            -6,355
    Earnings per share                              -0.28             -0.07
    Fully diluted earnings per share                -0.28             -0.07

* To facilitate the interpretation of the Group's performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.


   
    BALANCE SHEET (KEUR)                                  31/12/2015        31/12/2014
    ASSETS
    Net intangible fixed assets                              8,773             8,460
    Net tangible fixed assets                               17,933            22,868
    Other non-current assets                                 5,640             5,883
    Deferred tax assets                                     17,387            16,456
    Total non-current assets                                49,733            53,667
    Client receivables                                      67,363            63,914
    Other receivables                                       24,330            27,258
    Cash and cash equivalents                               36,968            56,264
    Total current assets                                   128,661           147,436
    TOTAL                                                  178,394           201,104


   
    LIABILITIES
    Capital                                                  4,273             4,281
    Issue premium                                           90,575            91,165
    Reserves                                                43,401            48,741
    Net income                                             -24,177            -6,355
    Shareholder equity                                     114,073           137,833
    Non-current liabilities                                  7,194             8,562
    Current liabilities                                     57,127            54,709
    TOTAL                                                  178,394           201,104

    CASH FLOW STATEMENT (KEUR)                                2015              2014
    Net income                                             -24,177            -6,355
    Amortization and provisions                             18,971            18,598
    Income related to stock options and other                3,273             3,100
    Other non-disbursed expenses                                13               108
    Gains on disposal of assets                              1,451               122
    Tax paid                                                -3,036            -3,486
    Self-financing capacity                                 -3,506            12,086

    Change in trade receivables                             -1,465            -2,582
    Change in operating liabilities                          6,459              -831
    Change in working capital                                4,994            -3,413

    Operating cash flow                                      1,488             8,674

    Acquisitions of licenses                                -5,148            -3,810
    Acquisitions of intangible fixed assets                 -2,247            -2,341
    Acquisitions of tangible fixed assets                   -7,156           -15,019
    Acquisitions of other fixed financial assets              -838            -1,381
    Repayment of other financial assets                        456             1,122
    Other cash flow                                            -47               109
    Net cash flows linked to investments                   -14,980           -21,320

    Free cash flow                                         -13,492           -12,646

    Capital increase                                         2,284             4,598
    Share buyback                                           -3,544            -1,935
    Other                                                       49             1,444
    Net cash flows from financing activities                -1,210             4,107

    Effect of exchange rate fluctuations                    -1,101               916

    Change in cash and cash equivalents                    -15,804            -7,623

    Net cash at the beginning of the year                   52,706            60,329
    Net cash at the end of the year                         36,903            52,706

SOURCE Gameloft