Gameloft's 2008 results
Income up 15%; 2009 shaping up well.
2008 Annual Results
Gameloft achieved consolidated revenues of €110.3 million for 2008, up by 15% from the previous year. Mobile games accounted for 93% of the company’s annual sales, while the console game business covered the remaining 7%.
The current operating income for 2008 reached €3.3 million, up 15% with 2007. The current operation margin stands at 3.0% and is in line with expectations.
The annual impact from expensing stock options is €2.7 million. This charge has no impact on the company's equity and cash level.
Interest income amounted to €(1.2) million and is mainly comprised of exchange rate losses, due to the high volatility of the American dollar and the Pound Sterling in 2008. Annual net income stands at €(1.8) million.
Healthy financial position
Gameloft's financial position is very solid at 31 December 2008. The company's equity stood at €49.4 million and net cash was €10.7M. Self-financing capacity is largely positive and reached €2.4 million over the full year. Gameloft therefore has the financial resources necessary for its international growth strategy.
Main events of 2008
- For the 4th year in a row, Gameloft has reached top rating for the best mobile game publishers.
- Gameloft now has a catalogue of 27 games for Apple iPhone and iPod touch. Of these 27 games, 16 are or have made it to the top 10 paid games, and some games are still in these lists 6 months after their release.
- Gameloft has sold over two million games on the App Store in just eight months.
- Gameloft has launched 14 games for Google's Android
- Gameloft's games are the best referenced and the most widely sold on the Smartphones (the next generation Internet phones) released in 2008
- Gameloft has had a stable staff base since 2007, with 4,000 employees at the end of 2008, including 3,300 creators.
- New licenses have been added successfully to Gameloft's catalogue, such as Spiderman, Terminator Salvation, Ferrari, NBA, The Oregon Trail.
- The brands created by Gameloft generated 61% of the company's downloads in 2008
- Gameloft further consolidated its distribution network in 2008, and now has over 180 operators and over 150 affiliates distribute our games in more than 80 countries throughout the world.
Outlook for 2009
With activity up by 15% in 2008 and especially by 31% in the last quarter, Gameloft seems to be weathering the worldwide economic slowdown quite well:
• Gameloft is probably the player that has benefitted most from the innovations introduced by historical phone manufacturers such as Nokia and Samsung and from the arrival of new dynamic players in the market such as Apple and Google
• Gameloft continues to win over substantial market shares in Smartphones along with traditional Java and Brew phones
• Gameloft is one of the very rare players in the market that has the resources and know-how allowing it to be present systematically at the launch of all the new consoles with downloading platforms (PlayStation Network, PSP Store, Nintendo WiiWare, etc).
Gameloft is expecting growth in 2009 in terms of sales as well as in terms of profitability.
Sales for the first quarter of 2009 will be published on April 28, 2009 after the close.
This press release may contain estimated financial data, information on future operations and projects, and on future economic performance. These projected items are provided on the basis of a forecast. They are subject to market risks and uncertainties and can vary substantially with the actual results that will be published. Estimated financial data was presented at the Board of Directors and has not been reviewed by the Auditors. (Additional information is provided in Gameloft's latest Reference Document, filed on June 6, 2008 with the Autorité des marchés financiers [French Financial Services Authority]).
Gameloft designs video games for the iPhone, iPod touch, all smart phones and mobile phones, Nintendo Wii Ware and Nintendo DSi, Microsoft’s Xbox LIVE Arcade, Sony PSP Store and Sony PlayStation Network.
Fully designed and developed internally, Gameloft's games enjoy scores awarded by specialized media exceeding 79%, year after year. As such, Gameloft is recognized as the best developer in the industry.
All of the games are available through digital distribution. Thanks to agreements with all of the main telecom operators, phone manufacturers and specialized distributors, as well as its www.gameloft.com shop, Gameloft's games are available in 80 countries.
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 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.
Gameloft has locations in New York, San Francisco, Seattle, Montreal, Mexico, Buenos Aires, Bogota, Caracas, Sao Paulo, Santiago, Paris, London, Düsseldorf, Copenhagen, Milan, Madrid, Lisbon, Vienna, Warsaw, Bucharest, New Delhi, Kuala Lumpur, Jakarta, 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).
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