2011 Annual Results: 17% Sales Growth, Record Current Operating Income of €21.1M, up 24%
PARIS, March 21, 2012 /PRNewswire/ --
Record Net Profit of €18.2M, up 34%
Net Cash of €36.9M, up 47%
Gameloft's consolidated profit and loss statement for the year ending 31 December 2011 breaks down as follows:
In millions of EUR 2011 2010
Sales 164.4 141.0
Other income 0.2 0.1
Cost of sales -19.4 -19.4
Gross margin 145.1 121.7
R&D -78.0 -65.7
Sales & Marketing -30.0 -26.5
Administration -14.5 -11.3
Other operating income and expenses -1.5 -1.1
Current operating income 21.1 17.1
Stock-based compensation
-2.1 -2.3
Other income and expenses
-5.3 -0.2
Operating income 13.7 14.6
-1.1 1.3
Net financial income
Tax expense 5.7 -2.3
Net profit/loss (group share) 18.2 13.6
Net profit per basic share 0.24 0.18
Net profit per diluted share 0.23 0.17
In 2011, Gameloft consolidated sales reached €164.4 million, up by 17% year on year. On a constant exchange rate basis, full-year growth was 19% compared with 13% in 2010. Europe represented 30% of the company's sales, North America 29% and the rest of the world 41%. Growth was driven by sales in emerging countries and by the massive success of Gameloft games on smartphones and tablets around the world. Gameloft's fourth-quarter sales on smartphones and tablets grew by 64% year on year and represented 41% of total sales.
The robust growth in sales and efficient cost control in the company's three departments-R&D, Sales & Marketing and Administration-have allowed Gameloft to grow its margins. The gross margin reached 88% compared with 86% in 2010. The 2011 current operating income stood at €21.1 million, up 24%, and the current operating margin for the period is 13%.
The annual impact from expensing stock options is €2.1 million. A non-recurring charge of €5.3 million was booked in relation to the console and PC social games previously capitalized on the balance sheet of the company. A decision was indeed taken in the second half of 2011 to focus all of Gameloft's creation efforts on smartphones, tablets and smart TVs, which are experiencing very rapid growth.
Net financial income amounted to -€1.1 million and is essentially comprised of exchange losses due to the strength of the Euro during the first half of the year. The company recorded a tax profit of €5.7 million due to the recognition of tax loss carry-forwards in France, where the company has recorded three straight profitable fiscal years. The amount of remaining unrecognized consolidated tax loss carry-forwards at the end of 2011 was €14.1 million.
The net profit for the full year stands at €18.2 million, up 34% compared with 2010. The Group's net margin reached 11%. Earnings per share and fully diluted earnings per share stand at €0.24 and €0.23 respectively.
Healthy Financial Position
Gameloft's financial position was very solid on December 31, 2011. The company's equity stood at €102.9 million and net cash reached an all-time high of €36.9 million. Cash generation was very strong during 2011: Gameloft's net cash increased by €11.8 million in twelve months. Therefore, the company has the financial resources necessary to continue to grow and increase its market shares around the world.
Multiple Licensing Deals Announced
Gameloft has secured the worldwide rights to several major new franchises in recent months, which should help to drive growth in the future. These agreements with some of the most prestigious players of the media, movie and toy industry illustrate once again the reputation for quality of our development studios as well as the unparalleled distribution reach put in place by Gameloft around the world. Starting in 2012 the company will launch games on feature phones, smartphones and tablets based on the following brands:
The Dark Knight Rises - DC Comics
Ice Age - Fox Digital Entertainment
Men in Black 3 - Sony Pictures Consumer Products
The Avengers - Marvel
The Amazing Spider-Man - Marvel
My Little Pony - Hasbro
Littlest Pet Shop - Hasbro
An Ambitious Strategy for the Future
The huge growth of smartphone and tablet sales, combined with exciting opportunities due to emerging countries and new business models, have led Gameloft to accelerate its development strategy on multiple platforms.
- Gameloft has just launched its first freemium game for feature phones and intends to launch several other feature phone games using this business model in the future. This new offer should allow the company to target new customers on feature phones around the world.
- All of Gameloft's smartphone and tablet games launched in 2012 will be freemium or paymium and will be heavily social. To this day, close to 125 million of its freemium and paymium games have been installed on iOS and Android. On average 35 million users play those games every month.
- In partnership with GREE, Gameloft will launch its first social card game in June 2012. Social card games are considered the most popular social games in Japan. Other social card games will be developed by the company in 2012.
- The momentum of the smartphone and tablet market should continue to sustain Gameloft's growth in the upcoming quarters. Gameloft will continue to invest heavily in this activity and intends to launch more games on more handset and tablet models in 2012 than in 2011.
- Gameloft is already one of the major game publishers on the Kindle Fire. The company has launched 32 games on the Kindle Fire to date and is recording rapidly increasing sales on the Amazon platform.
- Gameloft's iPad momentum continues with four of its most popular games optimized and ready for the launch of the new iPad from Apple.
Gameloft anticipates another year of solid growth in 2012. In the long term, the company appears to be in an ideal position to benefit from the rapid growth of the digital distribution of video games on mobile phones, tablets, next-generation set-top boxes and smart TVs.
Sales for the first quarter of 2012 will be published on May 3, 2012, 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 3: Fallen Nation 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).
Gameloft's sponsored Level 1 ADR (ticker: GLOFY) is traded OTC in the US.
P&L (EURK) 2011 2010
Revenue 164,357 140,958
Other revenue from the activity 151 149
Cost of sales -19,377 -19,434
Gross margin 145,131 121,673
R&D -77,975 -65,687
Sales and Marketing -30,046 -26,469
Administration -14,508 -11,324
Other operating income and expenses -1,486 -1,122
Current operating income 21,115 17,072
Stock-based compensation -2,139 -2,283
Other income and expenses -5,311 -222
Operating income 13,665 14,567
Cost of net financial indebtedness 377 123
Interest income 5,097 6,625
Interest expense -6,618 -5,437
Net financial income -1,144 1,312
Employee profit-sharing -36 -117
Tax expense 5,740 -2,197
Net profit/loss (group share) 18,225 13,566
Earnings per share 0.24 0.18
Fully diluted earnings per share 0.23 0.17
BALANCE SHEET (EURK) 31/12/2011 31/12/2010
ASSETS
Net intangible fixed assets 11,856 14,564
Net tangible fixed assets 7,509 5,964
Non-current financial assets 2,211 2,337
Assets from deferred assets 14,863 4,066
Total non-current assets 36,439 26,932
Inventory 0 0
Clients receivables 50,609 42,100
Cash and cash equivalents 38,034 27,038
Other current assets 13,417 10,826
Total current assets 102,060 79,965
TOTAL 138,499 106,896
LIABILITIES
Capital 3,855 3,754
Issue premium 71,625 67,452
Reserves 9,209 -6,990
Result 18,225 13,566
Shareholders' equity 102,914 77,783
Non-current liabilities 3,086 2,307
Current liabilities 32,499 26,807
TOTAL 138,499 106,896
Cash flow statement (EURK) 2011 2010
Operating transactions
Net profit 18,225 13,566
Depreciation and provisions 8,308 9,058
Net capitalized R&D expense 2,355 -2,550
Result from stocks options and
assimilated 2,139 2,283
Sales of assets 154 186
License acquisition -3,695 -5,455
Deferred tax -9,066 95
Self-financing capacity 18,420 17,184
Change in inventories 0 457
Change in trade receivables -12,400 -12,153
Change in operating
liabilities 7,469 2,767
Change in the working capital
requirement -4,931 -8,928
Operating cash flow 13,489 8,256
Investment-related cash flow
Acquisitions of intangible
fixed assets -813 -684
Acquisitions of tangible fixed
assets -5,190 -4,016
Acquisition of other fixed
financial assets -810 -505
Sales of assets 49 65
Repayment of loans and other
financial assets 912 138
Change in scope 0 79
Total transactions linked to
investments -5,853 -4,924
Total flows from financing
activities 4,280 814
Effect of exchange rate
changes -101 1,237
Change in cash 11,815 5,384
Net cash at the beginning of
the year 25,133 19,749
Net cash at the end of the
year 36,948 25,133
For further information:
Jessica W. Lewinstein - PR Manager
Tel: +1-415-615-0520
Email: [email protected]
For more information, consult http://www.gameloft.com.
SOURCE Gameloft
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