PARIS, August 28 /PRNewswire-FirstCall/ --
2008 Half-Year Results
Gameloft's financial statements for the first half-year ending June 30,
2008 break down as follows:
In EUR million H1 2008 H1 2007
Sales 50.3 45.9
Other Income 0.2 0.2
Cost of goods sold -4.1 -3.8
R&D -26.6 -25.1
Sales & Marketing -13.8 -10.5
Administration -4.5 -3.7
Other income and expenses 1.3 -0.7
Current operating income* 2.8 2.3
Stock-based compensation -1.3 -1.5
Other operational revenues and expenses -0.1 0.0
Operating income 1.4 0.8
Financial result -1.3 -0.1
Tax expenses -0.9 -0.6
Group Share of Net Income -0.8 0.0
*before stock-based compensation
Gameloft achieved consolidated revenues of EUR50.3 million for the first half of 2008, up by 17% from the previous year on a comparable exchange rate basis. Mobile games accounted for 94% of first-half revenues and the remaining 6% are related to Gameloft's console game business (Nintendo DS, Xbox Live Arcade and Nintendo WiiWare).
The current operating income for first-half 2008 is in line with expectations, up 18% with H1 2007. The operating margin stands at 5.5%, compared to 5.1% in the first half of 2007. This improvement in the margin, despite a 29% increase in the average headcount over the period, highlights the leverage that exists with the growth in revenues. The operational margin should therefore continue to improve over the second half of the year and the company is confident in renewing its goal for operating profitability over the full financial year 2008.
The half-year impact from expensing stock options is EUR1.3 million. This charge will have no impact on the company's equity and cash level.
Interest income amounted to EUR(1.3) million and is mainly comprised of exchange rate losses, due to the sharp rise in the Euro from January to June 2008. Net half-year profit stands therefore at EUR(0.8) million but is expected to improve substantially over the full-year 2008 thanks to the anticipated operating margin increase.
Healthy Financial Position
Gameloft's financial position has been very solid since June 30, 2008. The company's equity stood at EUR47.3 million, net cash was EUR12.7 million and financial indebtedness remained at zero. The operating cash flow reached EUR0.3 million in the first half of the year. The company therefore has the financial resources necessary for its international growth strategy.
Outlook 2008
Gameloft continues to reap the fruit of its investments in its creative and distribution abilities. These investments have allowed the company to grow faster than most of its major competitors and reach a leading worldwide position in the industry. These strategic investments pave the way for the future growth of the company, especially in the "rich games" segment that was launched in 2008 on high-end phones (iPhone, N-Gage, Instinct, etc.) and on downloading consoles (Wii, Xbox 360 and PS3) which is expected to fuel growth in the second half of 2008 and in following years.
Gameloft currently benefits from:
- the industry's largest development capacity, well beyond that of its competitors with over 3,300 developers in its studios. This allows Gameloft to release around 80 new games each year. Its catalogue comprises over 250 games covering 1,200 models of cell phones;
- a unique know-how demonstrated by its ability to diversify on platforms such as iPod, iPhone, Nintendo DS and WiiWare and with games that innovate as well as cater to a mass market audience. Gameloft is currently positioned as one of the major suppliers of games for the Apple iPhone and the Nokia N-Gage. It managed to place between one to four games in the top ten best selling iPhone games in the US, Canada, the UK, France, Germany, Spain, Italy and Japan since the launch of the AppStore in July 08;
- strong licenses with many of its own brands that are amongst the bestselling mobile games worldwide (Asphalt: Urban GT, Brain Challenge, Midnight Pool, TV Show King, etc.) and new partnerships with world-renowned brands (Ferrari, NBA, Oregon Trail, The Mummy, etc.);
- the world's most complete distribution network with over 180 operators and over 150 affiliates that distribute our games in more than 80 countries throughout the world.
Gameloft is therefore renewing its growth and profitability targets for 2008. In the long term, the company is in an ideal situation to occupy the top position in the industry with its successful investments in a market that is predicted to reach nearly 4 billion potential consumers in 2010[1]. The company expects to continue its steadfast growth and impact
Sales for the third quarter of 2008 will be published on Monday, November 3, 2008.
About Gameloft
Gameloft develops and publishes video games for cell phones and consoles worldwide. Founded in 1999, Gameloft is now positioned as one of the most innovative companies in its field. Gameloft designs games for telephones incorporating 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 rights holders 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, Beijing, 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) H1 2008 H1 2007
Sales 50 288 45 858
Other revenues (including capitalized R&D) 180 211
Cost of sales -4 054 -3 782
R&D -26 630 -25 093
Sales and Marketing -13 843 -10 490
Administration -4 521 -3 652
Other income and operating expenses 1 334 -716
Current operating income 2 754 2 336
Stock-based compensation -1 262 -1 535
Other operating revenue and expenses -69 -44
Operating income 1 423 757
Cost of net financial indebtedness 108 251
Interest income 1 693 469
Interest expense -3 103 -811
Financial result -1 301 -91
Income Tax -888 -633
Net income -766 34
. Group's share -766 34
Income per share -0,01 0,00
Diluted income per share -0,01 0,00
BALANCE SHEET (in thousands of Euros) 30/06/2008 31/12/2007
ASSETS
Net intangible fixed assets 9 816 7 154
Net tangible fixed assets 4 979 5 345
Non-current financial assets 1 883 2 288
Other non-current assets 754 627
Total non-current assets 17 432 15 413
Inventories 31 70
Client receivables 30 832 30 485
Investment securities 5 485 6 266
Cash 7 255 7 794
Other current assets 4 729 5 929
Total current assets 48 332 50 544
TOTAL ASSETS 65 764 65 957
LIABILITIES
Share Capital 3 658 3 653
Additional paid-in capital 63 017 62 860
Reserves -18 565 -15 240
Net profit -766 -4 080
Shareholders' equity 47 344 47 194
Non-current liabilities 707 1 224
Current liabilities 17 713 17 539
TOTAL LIABILITIES 65 764 65 957
CASH FLOW STATEMENT (in thousands of H1 2008 H1 2007
Euros)
Operating Transactions
Net income -766 34
Depreciation of tangible and intangible 4 579 2 637
fixed assets
Variation of provisions -73 63
Result from stocks options and assimilated 1 262 1 535
Tax expense 176 5
Sales of assets 270 -2
Capitalized R&D -3 082 0
License acquisition -1 881 -2 277
Operating cash flow before working capital 484 1 994
Change in stocks 39 24
Change in operating receivables 781 -445
Change in operating debts -1 024 884
Change in working capital -204 464
Operating cash flow 280 2 458
Transactions linked to investments
Acquisitions of intangible fixed assets -213 -122
Acquisitions of tangible fixed assets -1 324 -2 149
Acquisition of other fixed financial -155 -1 495
assets
Acquisition of controlling interests -6 -27
Sale of fixed assets 37
Repayment of loans and other financial 346 232
assets
Change in scope 85 -52
Other 57 -55
Cash flows from investing activities -1 210 -3 630
Transactions from financing
New long- and medium-term loans
Reimbursement of loans -28 -26
Capital increase 5 74
Increase in the issue premium 156 2 708
Change in loans from shareholders -47
Cash flows from financing activities 133 2 709
Net change in cash and cash equivalents -797 1 538
Net cash flow at the beginning of the year 13 938 18 660
Impact of conversion differentials -491 201
Net cash flow at the end of the year 12 649 20 398
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[1] Source: Strategy Analytics
Contact:
Anne-Laure Descleves
Head of Communications
Tel +33(0)1-58-16-20-82
anne-laure.descleves@gameloft.com
SOURCE Gameloft
International News / Press Release source: PR Newswire
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