PARIS, August 31, 2010 /PRNewswire-FirstCall/ -- - 11% Sales Growth - Current Operating Income of EUR5.8M, up 29% - Net Profit of EUR5.3M, up 140% - Net Cash of EUR25.9M 2010 Half-Year Results
Gameloft's financial statements for the first half-year ending June 30, 2010 breaks down as follows:
In EUR millions S1 2010 S1 2009 Revenue 66.6 60.1 Other income 0.1 0.1 Cost of sales (9.4) (7.7) R&D (32.0) (29.2) Sales & Marketing (13.7) (13.8) Administration (5.3) (4.3) Other income and expenses (0.5) (0.6) Current operating income 5.8 4.5 Stock-based compensation (0.9) (1.3) Other operational revenues and expenses (0.2) 0.0 Operating income 4.7 3.2 Net financial income 1.3 0.3 Tax expense (0.7) (1.2) Net profit/loss (group share) 5.3 2.2
Gameloft achieved consolidated sales of EUR66.6 million for the first half of 2010, up by 11% from the first half of 2009. The company's growth accelerated during the second quarter of 2010. The activity continues to be driven by increased market share in traditional Java and Brew phones, as well as by the massive success enjoyed by Smartphones around the world.
The solid growth in sales and efficient cost control in the company's three departments, R&D, Sales & Marketing, and Administration, have resulted in a substantial increase in Gameloft's operating and net income in the first half of 2010. The current operating income for the first six months of fiscal year 2010 stands at EUR5.8 million, up 29% compared to the first half of 2009. Therefore, the operating margin stands at 8.8%, compared to 7.6% during the first half of 2009.
The half-year impact from expensing stock options is EUR0.9 million. This charge does not have an impact on the company's equity and cash level. Interest income amounted to EUR+1.3 million and is comprised of exchange gains and interest on the company's net cash.
The net half-year profit stands at EUR5.3 million, up 140% compared to the first half of 2009. The Group's net margin reached 7.9% which more than doubled compared to the first half of 2009. Earnings per share and fully diluted earnings per share both stand at 0.07EUR.
Healthy Financial Position
Gameloft's financial position was very solid on June 30, 2010. The company's equity stood at EUR69.6 million and net cash and cash equivalents totaled EUR25.9 million. Cash generation was particularly strong during the first half of the year. The company's self-financing capacity reached EUR6.9 million and on June 30, 2010 Gameloft's net cash increased by EUR6.2 million. Therefore, the company has the financial resources necessary to continue its fast growth and take market share around the world.
Outlook for 2010-2011 - Gameloft should continue to win over market share in Java and Brew phones, as a result of the progressive withdrawal of a large number of competitors. - The recent and future releases of new high-performance Smartphones from Apple, Samsung, Nokia and Google should continue sustaining Gameloft's growth in the upcoming quarters. Gameloft has become one of the top game publishers on Apple's iPhone and iPad, and its AppStore revenues grew 82% during the first half of 2010. - The release of new devices that are suited for video games such as Apple's iPad will allow Gameloft to continue its diversification with other formats and provide the company with interesting relays for growth. Gameloft is one of the very few players in the market that has the resources and know-how allowing it to be present systematically at the launch of all the new downloadable consoles and tablets (iPad, PlayStation Network, Nintendo DSiWare, Nintendo WiiWare, etc.).
Gameloft is renewing its growth target for sales, profitability and net cash over the full year of 2010. In the long term, Gameloft appears to be in an ideal position to benefit from the rapid emergence of the digital distribution of video games on mobile phones, tablets and consoles.
Sales for the third quarter will be published on November 3, 2010 after the market closes.
Gameloft is the worldwide leader in developing and publishing downloadable video games. Gameloft is now positioned, after 10 years, as one of the most innovative companies in its field. The company designs games for mobile phones, smartphones, iPhone, iPod touch and iPad for which the number of units should exceed four billion in 2012. As a pioneer in the new downloadable game console market, Gameloft publishes games for WiiWare, DSiWare, Microsoft Xbox LIVE Arcade and PlayStation Network. Partnership agreements with major licensors allow Gameloft to associate the strongest international brands with such games as Uno, Ferrari, Shrek, CSI, Iron Man, Spiderman and Sonic. The company also has its own brand portfolio with established franchises such as Real Football, Asphalt and Cerebral Challenge. Gameloft has locations on all continents, distributes its games in 100 countries and has its own production studios with over 3,500 developers. Gameloft is listed on the Paris Stock Exchange (ISIN: FR0000079600, Bloomberg: GFT FP, Reuters: GLFT.PA).
For more information, consult http://www.gameloft.com P&L (EURK) S1 2010 S1 2009 Revenue 66,563 60,102 Other revenue from the activity 114 137 Cost of sales -9,420 -7,720 R&D -31,958 -29,234 Sales and Marketing -13,669 -13,847 Administration -5,312 -4,310 Other income and operating expenses -476 -587 Current operating income 5,842 4,541 Stock-based compensation -941 -1,261 Other operating revenue and expenses -174 -44 Operating income 4,727 3,237 Cost of net financial indebtedness 34 58 Interest income 5,772 1,965 Interest expense -4,491 -1,739 Net financial income 1,315 284 Employee profit-sharing -24 -78 Tax expense -748 -1,248 Net profit/loss (group share) 5,270 2,194 Earnings per share 0.07 0.03 Fully diluted earnings per share 0.07 0.03 BALANCE SHEET (EURK) 30/06/2010 31/12/2009 ASSETS Net intangible fixed assets 14,720 12,602 Net tangible fixed assets 5,249 4,579 Non-current financial assets 2,364 1,948 Assets from deferred assets 3,384 2,762 Total non-current assets 25,718 21,892 Inventory 60 457 Clients receivables 34,324 32,626 Cash and cash equivalents 25,985 19,804 Other current assets 8,207 8,674 Total current assets 68,577 61,562 TOTAL 94,294 83,454 LIABILITIES Capital 3,744 3,740 Issue premium 66,803 66,593 Reserves -6,264 -16,368 Result 5,270 5,972 Shareholders' equity 69,552 59,936 Non-current liabilities 1,551 1,639 Current liabilities 23,191 21,878 TOTAL 94,294 83,454 Cash flow statement (EURK) S1 2010 S1 2009 Operating transactions Net profit/loss 5,270 2,194 Depreciation of tangible and intangible 6,500 5,492 assets Result from stocks options and assimilated 941 1,261 Tax paid 60 -190 Sales of assets 37 79 Capitalized R&D expense -3,015 -1,784 License acquisition -2,888 -3,214 Self-financing capacity 6,903 3,838 Change in inventories 397 1,619 Change in trade receivables -26 7,086 Change in operating liabilities -744 -5,154 Change in the working capital requirement -373 3,551 Operating cash flow 6,531 7,389 Investment-related cash flow Acquisitions of intangible fixed assets -313 -300 Acquisitions of tangible fixed assets -1,643 -960 Acquisition of other fixed financial assets -648 -27 Acquisition of controlling interests 65 4 Repayment of loans and other financial 51 189 assets Change in scope 39 45 Total transactions linked to investments -2,450 -1,049 Total flows from financing activities 174 75 Change in cash 4,255 6,414 Net cash at the beginning of the year 19,749 10,748 Impact of conversion differentials 1,921 -262 Net cash at the end of the year 25,925 16,900 Contact: Aude Fouquier European Communication Director Tel +33-1-5816-2155 Email: firstname.lastname@example.org