PARIS, August 31, 2011 /PRNewswire/ --
15% sales growth
Current operating margin of 12%
Operating income of €7.9M, up 68%
Net cash of €26.1M
2011 Half-Year Results
Gameloft's financial statements for the first half-year ending June 30, 2011, breaks down as follows:
In EUR millions H1 2011 H1 2010
Revenue 76.8 66.6
Other income 0.1 0.1
Cost of sales -8.9 -9.4
R&D -37.0 -32.0
Sales & Marketing -14.4 -13.7
Administration -7.1 -5.3
Other income and expenses -0.6 -0.5
Current operating income 8.9 5.8
Stock-based compensation -1.0 -0.9
Other operational revenues and expenses 0.0 -0.2
Operating income 7.9 4.7
Net financial income -1.3 1.3
Tax expense -1.3 -0.8
Net profit/loss (group share) 5.3 5.3
Gameloft achieved consolidated sales of €76.8 million in the first half of 2011, up by 15% from the previous year. The company's growth accelerated significantly during the first half of 2011. Growth on a constant exchange rate basis reached 17% compared to 10% during the first half of 2010. This growth was driven by sales in emerging countries and by the massive success of Gameloft games on smartphones and tablets around the world.
The solid growth in sales and efficient cost control has resulted in a substantial increase in Gameloft's operating income in the first half of 2011. The gross margin reached 88% compared with 86% in the first half of 2010. The current operating income for the first six months of 2011 stands at €8.9 million, up 53% year on year. Therefore, the current operating margin for the period is 11.6%, compared with 8.8% during the first half of 2010.
The half-year impact from expensing stock options is €1.0 million. This charge does not have an impact on the company's equity and cash level. The operating income reached €7.9 million, up 68% compared with the first half of 2010.
Interest income amounted to -€1.3 million and is essentially comprised of exchange losses due to the strength of the Euro. The net half-year profit stands at €5.3 million, flat compared with the first half of 2010. The Group's net margin reached 6.8%. Earnings per share and fully diluted earnings per share both stand at €0.07.
Healthy Financial Position
Gameloft's financial position was very solid on June 30, 2011. The company's equity stood at €85.7 million, up 10% in six months. The company's self-financing capacity reached €6.1 million during the first half of 2011. Net cash and cash equivalents totaled €26.1 million on June 30, 2010. Therefore, the company has the financial resources necessary to continue to grow around the world.
Outlook for 2011-2012
- 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 dynamism of the smartphone and tablet market should continue sustaining Gameloft's growth in the upcoming quarters. Gameloft's first-half sales on smartphones and tablets grew by 55% year on year and represented 30% of total sales.
- The release of new gaming platforms, such as social networks, smart TVs and next-generation set-top boxes should provide the company with strong growth opportunities in the coming years.
Therefore, Gameloft is renewing its growth target for sales and profitability over the full year of 2011. In the long term, the company appears to be in an ideal position to benefit from the rapid emergence of digital distribution of video games on mobile phones, tablets, social networks, TVs and consoles.
Sales for the third quarter will be published on November 2, 2011, after the market closes.
About Gameloft
A leading global 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, including mobile phones, smartphones and tablets (including Apple® iOS and Android® devices), set-top boxes, connected TVs and consoles. Gameloft partners with leading international brands such as UNO®, Spider-Man®, James Cameron's Avatar™, Ferrari® and Sonic Unleashed®. Gameloft also operates its own established franchises, such as Real Football, Asphalt™, Modern Combat 2: Black Pegasus and N.O.V.A. Near Orbit Vanguard Alliance®. Gameloft is present in all continents, distributes its games in 100 countries and employs over 4,000 developers.
Gameloft is listed on the Paris Stock Exchange (ISIN: FR0000079600, Bloomberg: GFT FP, Reuters: GLFT.PA).
P&L (EURK) H1 2011 H1 2010
Revenue 76,803 66,563
Other revenue 72 114
Cost of sales -8,885 -9,420
R&D -37,010 -31,958
Sales and Marketing -14,414 -13,669
Administration -7,064 -5,312
Other income and operating expenses -592 -476
Current operating income 8,910 5,842
Stock-based compensation -965 -941
Other operating revenue and expenses 0 -174
Operating income 7,945 4,727
Cost of net financial indebtedness 32 34
Interest income 1,679 5,772
Interest expense -3,038 -4,491
Net financial income -1,326 1,315
Employee profit-sharing -108 -24
Tax expense -1,261 -748
Net profit/loss (group share) 5,250 5,270
Earnings per share 0.07 0.07
Fully diluted earnings per share 0.07 0.07
BALANCE SHEET (EURK) 30/06/2011 31/12/2010
ASSETS
Net intangible fixed assets 15,929 14,564
Net tangible fixed assets 7,007 5,964
Non-current financial assets 2,383 2,337
Assets from deferred assets 5,159 4,066
Total non-current assets 30,478 26,932
Inventory 0 0
Clients receivables 43,470 42,100
Cash and cash equivalents 27,349 27,038
Other current assets 14,251 10,826
Total current assets 85,070 79,965
TOTAL 115,548 106,896
LIABILITIES
Capital 3,841 3,754
Issue premium 70,825 67,452
Reserves 5,751 -6,990
Result 5,250 13,566
Shareholders' equity 85,667 77,783
Non-current liabilities 3,021 2,307
Current liabilities 26,859 26,807
TOTAL 115,548 106,896
Cash flow statement (EURK) H1 2011 H1 2010
Operating transactions
Net profit/loss 5,250 5,270
Depreciation & Provisions of tangible and
intangible assets 4,191 4,793
Result from stock options and assimilated 965 941
Tax paid -23 60
Sales of assets 68 37
Net capitalized R&D expenses -2,431 -1,309
License acquisition -1,920 -2,888
Self-financing capacity 6,101 6,903
Change in inventories 0 397
Change in trade receivables -6,448 -26
Change in operating liabilities 3,455 -744
Change in the working capital requirement -2,994 -373
Operating cash flow 3,107 6,531
Investment-related cash flow
Acquisitions of intangible fixed assets -499 -313
Acquisitions of tangible fixed assets -3,209 -1,643
Acquisition of other fixed financial
assets -1,053 -648
Acquisition of controlling interests 11 65
Repayment of loans and other financial
assets 415 51
Change in scope 0 39
Total transactions linked to investments -4,335 -2,450
Total flows from financing activities 3,359 174
Change in cash 2,131 4,255
Net cash at the beginning of the year 25,133 19,749
Impact of conversion differentials -1,142 1,921
Net cash at the end of the year 26,122 25,925
Contact:
Jessica W. Lewinstein
Corporate PR Manager
Tel: +1-415-265-5725
Mail: [email protected]
For more information, consult http://www.gameloft.com
SOURCE Gameloft
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