Strong quarterly sales up 50% to 15.8m€
H1 revenue growth ahead of full-year guidance
Paris, 27 July 2006.
Gameloft achieved consolidated sales of 15.8m in the second quarter of 2006, up by 50% from the previous year. The group's sales in the first half of 2006 were up by 50% over the same period last year, at 30.5 million euros.
In million euros - 2006 - 2005 - Change
1st Quarter - 14.8 - 9.9 - +49%
2nd Quarter - 15.8 - 10.5 - +50%
Half-Year - 30.5 - 20.4 - +50%
Mobile gaming accounted for 97% of Gameloft's revenues during the first half of 2006, up 52% compared with the same period in 2005.
Within the mobile gaming activity, the growth of download revenues, Gameloft's core business, remained very strong: income from downloadable games rose by 100% during the first six months of 2006 and accounted for 90% of the company's half-year sales.
Internet revenues generated by the jeuxvidéo.com website accounted for 3% of total H1 sales. This activity was sold on 10 June 2006 for 22.9 m in cash.
North America has become Gameloft's major source of revenues, demonstrating the rapid progress made by the company in this region. North America accounted for 42% of the company's sales during the second quarter of 2006, compared with 41% in Europe and 17% in the rest of the world, mainly Asia and South America. During the first half of 2006, Europe accounted for 44% of the Group's total sales, North America 40% and the rest of the world, 16%. The Group's sales are thus evenly balanced between North America and Europe with sales to the rest of the world growing at a very fast pace.
The robust growth in Gameloft's activities during the first six months of 2006 puts the company ahead of its 40% annual growth target. This solid showing, in line with its first quarter performance, was driven by the company's investment in its production and sales capabilities and by the growth of the mobile gaming market. With close to 2,000 employees working in its development studios, Gameloft has a potential that is unmatched in the wireless gaming industry. The company launched 14 new games during the first half of the year and will launch close to 30 high-profile games during the second half of 2006. By the end of the year, Gameloft's catalogue will comprise over 110 games sold in 70 countries through more than 160 operators and compatible with more than 600 different telephone models.
The company's financial position has strengthened substantially during the first half of the year. Gameloft's net cash reserves are in excess of 20 million euros and its shareholder equity now exceeds 40 million euros.
Gameloft reiterates the annual growth and profitability targets that it had set at the beginning of the year.
Gameloft, the world's leading wireless gaming company, is thus in a good position to consolidate its leadership and pursue its development over the coming years. The company is very confident in its prospects for growth and profitability in 2007 and in subsequent trading years.
Gameloft's consolidated results for the first half of 2006 will be published on September 29, 2006.
Contact: Anne-Laure Desclèves
Tel: + 33 (0)1 58 16 20 82