Gameloft: Sales of €127.4M, Up 15% YoY, Current Operating Income of -€4.0M, Net Cash of €36.2M
Results for the First Half of 2015
Sep 09, 2015, 12:20 ET
PARIS, September 9, 2015 /PRNewswire/ --
Gameloft's financial statements for the first half-year ending June 30, 2015; breakdown as follows:
In millions of EUR H1 2015 % of sales H1 2014 % of sales Sales 127.4 111.3 Cost of sales -20.6 -16% -19.7 -18% Gross profit 106.8 84% 91.6 82% R&D -66.2 -52% -56.1 -50% Sales and marketing -27.0 -21% -20.2 -18% Administration -17.1 -13% -13.2 -12% Other operating income and expenses -0.5 0% -0.5 0% Current operating income -4.0 -3% 1.6 1% Stock-based compensation -1.5 -1% -2.0 -2% Other income and expenses -2.5 -2% -0.2 0% Operating income -8.1 -6% -0.6 -1% Financial income -3.5 -3% 2.9 3% Net income before tax -11.5 -9% 2.3 2% Tax expense -5.0 -4% -2.4 -2% Net income -16.6 -13% -0.1 0%
"Strong game service sales combined with the launch of nine new games have allowed Gameloft's revenues to grow by 15% and reach €127.4 million in the first six months of 2015. Current operating expenses stood as anticipated at €131.5 million for the same period. Current operating income therefore stood at -€4.0 million. This first-half loss is due to the seasonality of our business as well as to the disappointing level of revenues achieved by the three games developed by Gameloft specifically for the Japanese and Chinese markets. In order to return to profitability in the second half of 2015, and to past profitability levels in the medium term, Gameloft has initiated an ambitious cost reduction program since the start of the year and in the process closed seven development studios that had become unprofitable," stated Michel Guillemot, CEO of Gameloft. "Gameloft has a massive audience, strong brands, solid recurring revenues, growth opportunities ahead and a healthy financial situation. We therefore continue to look to the future with confidence."
Selected Financial Highlights and Metrics
- H1 2015 sales reached €127.4 million, up 15% year on year, and up 6% on a constant-exchange-rate basis.
- EMEA accounted for 30% of H1 2015 sales; North America, 27%; APAC, 28%; and LATAM, 15%.
- Monthly active users and daily active users averaged 172 million and 21 million respectively in H1 2015.
- Operating income stood at -€8.1 million. It includes restructuring expenses of €2.5 million and €1.5 million of stock-based compensation.
- Financial income stood at -€3.5 million and includes a one-off €3.0 million loss due to the devaluation of the Bolivar in Venezuela.
- Tax expense reached €5.0 million, of which €2.0 million consists of withholding tax. The amount of unrecognized deferred tax reached €14.7 million at the end of June 2015, compared with €8.2 million at the end of 2014.
- The balance sheet structure of the company remains sound with a net cash position of €36.2 million at the end of June 2015.
Selected Product Highlights
- Gameloft was the #1 game company worldwide in the number of downloads on iOS and Google Play combined, according to App Annie's H1 2015 index for games.
- Gameloft has released 10 new titles since the beginning of 2015: Dragon Mania Legends®, Puzzle Pets, Immortal Odyssey, Age of Sparta, Dungeon Hunter™ 5, Battle Odyssey™, Ice Age® Avalanche, Magna Memoria®, Siegefall and March of Empires™.
- Dragon Mania Legends, Dungeon Hunter 5, Siegefall and March of Empires are currently among the company's best-selling titles, and the key performance indicators of these titles indicate a strong improvement in monetization compared with similar products launched in previous years.
- Gameloft is set to launch three potential blockbusters in the coming weeks: Disney Magic Kingdom, Order & Chaos 2: Redemption™ and TRIVIAL PURSUIT & Friends®.
Financial and Business Outlook
At the beginning of the year the company set up its own in-house digital ad agency, Gameloft Advertising Solutions, whose revenues have increased significantly. With a monthly audience of over 172 million users and an inventory of 9 billion impressions, Gameloft Advertising Solutions offers a unique level of visibility and engagement to advertisers. To date, over 300 campaigns have been delivered via Gameloft Advertising Solutions for prestigious brands such as FOX, Samsung, McDonald's, Coca-Cola, Kellogg's, Unilever, Netflix, Ford and Air France in more than 33 countries in the world (North America, Latin America, UAE, Europe, Asia, etc.). "With major advertising companies now switching a larger part of their budgets to mobile and with Gameloft being one of the leading publishers by downloads and audience, we expect advertising to become a significant new line of business for the company and to unlock long-term shareholder value," added Michel Guillemot.
Gameloft expects to release around eight new titles in the second half of 2015. In total, the company will have released around 17 new games in 2015, compared with 12 in 2014.
The Group's third-quarter sales will be published on November 5, 2015, after the market closes.
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, including feature phones, smartphones, tablets (including Apple® iOS, Android® and Windows® devices), set-top boxes and connected TVs. 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 5,000 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.
PROFIT & LOSS STATEMENT (KEUR) H1 2015 H1 2014 Revenue 127,436 111,277 Cost of sales -20,612 -19,705 Gross margin 106,824 91,572 R&D -66,198 -56,085 Sales and Marketing -27,025 -20,200 Administration -17,116 -13,177 Other operating income and expenses -522 -518 Current operating income -4,037 1,593 Stock-based compensation -1,538 -1,974 Other income and expenses -2,480 -206 Operating income -8,054 -587 Cost of net financial indebtedness 972 1,362 Exchange rate gains 17,296 2,680 Exchange rate losses -21,743 -1,187 Net financial income/loss -3,475 2,855 Net income/loss before tax -11,529 2,268 Tax expense -5,044 -2,410 Net profit/loss (group share) -16,573 -142 Earnings per share -0,19 0,00 Fully diluted earnings per share -0,19 0,00
BALANCE SHEET (KEUR) 30/06/2015 31/12/2014 ASSETS Net intangible fixed assets 9,926 8,460 Net tangible fixed assets 23,278 22,868 Other non-current assets 6,077 5,883 Deferred tax assets 17,769 16,456 Total non-current assets 57,051 53,667 Client receivables 69,647 63,914 Other receivables 26,518 27,258 Cash and cash equivalents 36,266 56,264 Total current assets 132,431 147,436 TOTAL 189,482 201,104
LIABILITIES Capital 4,252 4,281 Issue premium 88,675 91,165 Reserves 46,878 48,741 Net income -16,573 -6,355 Shareholder equity 123,232 137,833 Non-current liabilities 7,402 8,562 Current liabilities 58,847 54,709 TOTAL 189,482 201,104 CASH FLOW STATEMENT (KEUR) H1 2015 H1 2014 Net income -16,573 -142 Depreciation, amortization and provisions 9,232 8,032 Stock-based compensation 1,538 1,974 Deferred tax -1,851 -2,083 Gains on disposal of assets 244 36 Other 0 56 Self-financing capacity -7,410 7,872 Change in trade receivables -2,913 1,062 Change in operating liabilities 6,828 -303 Change in working capital 3,915 759 Operating cash flow -3,494 8,631 Acquisitions of licenses -3,786 -3,912 Acquisitions of intangible fixed assets -1,220 -1,090 Acquisitions of tangible fixed assets -5,741 -9,084 Acquisitions of other fixed financial assets -590 -723 Repayment of other financial assets 167 567 Proceeds from sale of assets 23 34 Net cash flows linked to investments -11,147 -14,208 Free cash flow -14,641 -5,576 Proceeds from loans and borrowings 25 1,414 Capital increase related to stock options and bonus shares 1,239 2,920 Share buyback -3,544 -522 Net cash flows from financing activities -2,280 3,812 Effect of exchange rate fluctuations 438 -23 Change in cash and cash equivalents -16,484 -1,787 Net cash at the beginning of the year 52,706 60,329 Net cash at the end of the year 36,223 58,542
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