PARIS, March 23, 2010 /PRNewswire-FirstCall/ --
- 11% Growth in Sales
- Tripling of Current Operating Income at EUR10.4M
- Very Sharp Increase in Net Profit at EUR6.0M
2009 Annual Results
Gameloft's financial statement for the year ending 31 December 2009
breaks down as follows:
In EUR millions 2009 2008
Turnover 122.0 110.3
Other Income 0.3 0.3
Cost of goods sold -15.5 -11.1
R&D -57.4 -57.6
Sales & Marketing -28.1 -30.1
Administration -9.2 -9.2
Other income and expenses -1.6 0.7
Current operating income* 10.4 3.3
Stock-based compensation -2.7 -2.7
Other operational revenues and expenses 0.0 -0.3
Operating income 7.7 0.4
Financial result 0.4 -1.2
Tax expense -2.0 -0.9
Group Share of Net Income 6.0 -1.8
* Before stock-based compensation
Gameloft achieved consolidated revenues of EUR122.0 million for 2009, up by 11% from the previous year. Mobile games accounted for 94% of the company's annual sales, while the console game business covered the remaining 6%.
The solid growth in revenue and good cost control in the company's three departments, Research & Development, Sales & Marketing and Administration, have allowed Gameloft to triple its operating income in 2009. The current operating income for 2009 reached EUR10.4M compared to EUR3.3M in 2008. Therefore, the operating margin stands at 8.6%, in line with expectations.
Gameloft continues to benefit from investments in its development and distribution abilities. These investments that enabled Gameloft to grow quickly and to position itself as one of the top industry leaders in the past few years are now also resulting in increased profitability for the company.
The annual impact from expensing stock options is EUR2.7M. This charge has no impact on the company's equity and cash level.
Interest income amounted to EUR0.4M and is comprised of exchange gains and interest on the company's cash flow. Therefore, the net annual profit stands at EUR6.0M, a clear improvement over 2008.
Healthy Financial Position
Gameloft's financial position remains very solid. At 31 December 2009, the company's equity stood at EUR59.9M, net cash was EUR19.8M and financial indebtedness zero. Cash generation was particularly strong with over EUR9.0M in additional cash flow generated during 2009. As a result, Gameloft has the financial resources necessary to continue its rapid growth and take market share around the world.
Outlook for 2010
- Gameloft should continue to win over substantial market share in
traditional Java and Brew phones due in particular to the progressive
withdrawal of a large number of competitors.
- Gameloft will continue to benefit strongly from the fast adoption of
Smartphones by consumers and from the arrival of new dynamic players
in the market such as Apple and Palm. As such, the company has
positioned itself in the top ranks as a publisher on Apple's App Store
with 60 iPhone games released since July 2008 which represented 14% of
the company's sales in 2009.
- Gameloft is one of the very few players in the market that has the
resources and know-how allowing it to be present with downloadable
content for the launch of all the new consoles (iPad, PlayStation
Network, Nintendo DSiWare, Nintendo WiiWare, etc.).
Therefore, the company is expecting further growth in 2010 in terms of sales, profitability and cash. In the long term, Gameloft seems in an ideal position to benefit from the rapid emergence of the digital distribution of video games on mobile telephones, tablets, consoles and from major technological innovations brought to the market by companies such as Apple, Nokia, Sony and Nintendo.
Sales for the first quarter of 2010 will be published on 28 April 2010.
About Gameloft
Gameloft designs and publishes video games for mobile telephones and consoles worldwide. Gameloft was founded in 1999 is now positioned as one of the most innovating companies in its field. Gameloft designs games for telephones incorporating the Java, Brew and Symbian technologies, for which the number of units should exceed four billion in 2012. Gameloft games are also available on WiiWare, DS, Microsoft Xbox LIVE Arcade, iPod and PCs.
Partnership agreements with major licensors such as Ubisoft Entertainment, Universal Pictures, ABC, Touchtone Television, Dreamworks Animations SKG, Endemol, 20th Century Fox, Viacom, Sony Pictures, Warner Bros., FIFPro, Ferrari, Roland-Garros, Gus Hansen, Kobe Bryant, Derek Jeter, Robinho, Reggie Bush, Chuck Norris, Patrick Vieira, Christophe Dominici and Jonny Wilkinson allow Gameloft to associate its games with very strong international brands. In addition to these brands, Gameloft has its own brands, such as Block Breaker Deluxe, Asphalt: Urban GT and New York Nights.
Thanks to agreements with all of the main telecom operators, telephone manufacturers and specialized distributors, as well as its http://www.gameloft.com boutique, Gameloft's games are distributed in 80 countries.
Gameloft has locations in New York, San Francisco, Seattle, Montreal, Mexico, Buenos Aires, Paris, London, Koln, Copenhagen, Milan, Madrid, Lisbon, Vienna, Warsaw, Helsinki, Bucharest, New Delhi, Kuala Lumpur, Peking, Tokyo, Hong Kong, Seoul, Singapore and Sydney.
Gameloft is listed in Compartment B of the Paris Stock Exchange (ISIN: FR0000079600, Bloomberg: GFT FP, Reuters: GLFT.PA).
For more information, consult http://www.gameloft.com
P&L (in thousands of euros) 2009 2008
Revenues 121,972 110,332
Other revenue from the activity 334 259
Cost of sales -15,528 -11,129
R&D -57,421 -57,568
Sales and Marketing -28,124 -30,068
Administration -9,164 -9,196
Other -1,629 714
Current operating income* 10,439 3,344
Stock-based compensation -2,686 -2,696
Other operating revenue and expenses -41 -295
Operating income 7,712 352
Cost of net financial indebtedness 88 197
Interest income 2,669 5,033
Interest expense -2,312 -6,458
Financial result 445 -1,228
Tax expense -2,040 -933
Employee profit-sharing -146 0
Net income 5,972 -1,809
. Group's share 5,978 -1,805
. minority interests -6 -3
BALANCE SHEET (in thousands
of euros) 31/12/2009 31/12/2008
ASSETS
Net intangible fixed assets 12,602 11,228
Net tangible fixed assets 4,579 5,083
Non-current financial assets 1,948 2,674
Assets from deferred assets 2,762 1,950
Total non-current assets 21,892 20,935
Inventory 457 2,428
Client receivables 32,626 35,143
Cash 19,804 11,473
Other current assets 8,674 7,001
Total current assets 61,562 56,046
TOTAL 83,454 76,981
LIABILITIES
Capital 3,740 3,680
Issue premium 66,593 63,790
Reserves -16,368 -16,225
Result 5,972 -1,809
Shareholders' equity 59,936 49,436
Non-current liabilities 1,639 1,298
Current liabilities 21,878 26,247
TOTAL 83,454 76,981
Cash Flow Statement (in 2009 2008
thousands euros)
Operating transactions
Net income 5,972 -1,809
Depreciation of assets and 12,483 11,403
variation of provisions
Result from stocks options 2,686 2,696
and assimilated
Taxes paid -165 -568
Sales of assets 83 384
Capitalized R&D expense -4,601 -5,962
Licence acquisition -5,782 -3,751
Self-financing capacity 10,675 2,393
Change in inventories 1,971 -2,359
Change in operating 61 -7,053
receivables
Change in operating debts -3,690 5,811
Change in the working -1,657 -3,601
capital requirement
Operating cash flow 7,389 280
Transactions linked to
investments
Acquisitions of intangible -718 -662
fixed assets
Acquisitions of tangible -2,362 -2,796
fixed assets
Acquisition of other fixed -723 -371
financial assets
Acquisition of controlling -11 -352
interests
Repayment of loans and 870 441
other capital assets
Change in scope 80 120
Other transactions 110 74
Total transactions linked -2,754 -3,546
to investments
Total flows from financing 2,839 916
transactions
Change in cash flow 9,103 -3,838
Net cash flow at the 10,748 13,938
beginning of the year
Impact of conversion -102 649
differentials
Net cash flow at the end of 19,749 10,748
the year
SOURCE Gameloft
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