Gameloft Announces Record Sales of €23.2 Million and 47% Growth in Second Quarter

H1 Revenue Growth Ahead of Full-Year Guidance

News by GamesIndustry International Contributor

Published on July 27, 2007

PARIS -- Gameloft achieved consolidated sales of 45.9 million for the first half of 2007, up by 50% from the previous year. On a comparable consolidation and exchange rate basis, half-year growth would have reached 61%.

Europe accounted for 44% of the sales during the first half, North America 38% and the rest of the world, 18%.

Since the beginning of 2007, the sharp increase in the company's sales is a result of:

the continued success of Gameloft's back catalogue, thanks in particular to the large number of games released in previous years and the quality of these games, which extends their lifespan; the immediate success of the games launched in the first half of 2007, such as Shrek the Third, Desperate HousewivesTM, LostTM, Real Soccer 2007, Tennis Open 2007 feat. Lleyton Hewitt, etc. Gameloft released a total of 35 new games during the first six months of 2007 and more than 40 are to be released by the end of the year.

The 50% increase in sales recorded during H1 2007 has pushed the company ahead of its annual growth target which currently falls between 39% and 46%. The company is consequently in a position today to confidently reiterate its annual sales objective of 95 million to 100 million and its operating margin target (excluding employee stock based compensation) in excess of 10% for 2007.

The company's financial position has become stronger with the first 6 months of 2007. The cash level at June 30, 2007 was close to 21 million (compared to 18.6 million at the end of 2006) allowing us to confirm our objective of an operating cash flow close to breakeven or positive during fiscal 2007.

At the end of 2007, Gameloft's catalogue will amount to nearly 200 games, sold in over 80 countries, via over 180 carriers and compatible with over 1,000 different cell phone models.

Gameloft, the leading independent publisher of mobile games, is ideally positioned to consolidate its leadership and is very confident about its outlook for growth and profitability in the upcoming years. For 2008, Gameloft sets an objective of over 130 million in sales, along with an operating margin (excluding employee stock based compensation) around 15%.

The consolidated half-year results will be published on August 30, after the close of the market.

Shrek is a registered trademark of DreamWorks Animation L.L.C. Shrek the Third TM & ® 2007 DreamWorks Animation L.L.C.

Contacts

Gameloft

Anne-Laure Desclèves, + 33 (0)1 58 16 20 82

anne-laure.descleves@gameloft.com