Gameloft: Sales of €127.4M, Up 15% YoY, Current Operating Income of -€4.0M, Net Cash of €36.2M

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.

About Gameloft 

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

For further information:
Laure d'Hauteville
Deputy CFO
Email: [email protected]
+33-(0)-1-58-16-20-40

SOURCE Gameloft