PARIS, March 23, 2011 /PRNewswire-FirstCall/ --
- 16% Sales Growth
- Record Current Operating Income of EUR17.1M, up 64%
- Net Profit of EUR13.6M, up 127%
- Earnings per Share Reach 0.18EUR
2010 Annual Results
Gameloft's financial statement for the year ending 31 December 2010
breaks down as follows:
In EUR millions 2010 2009
Sales 141.0 122.0
Other income 0.1 0.3
Cost of sales -19.4 -15.5
Gross margin 121.7 106.8
R&D -65.7 -57.4
Sales & Marketing -26.5 -28.1
Administration -11.3 -9.2
Other operating income and expenses -1.1 -1.6
Current operating income 17.1 10.4
Stock-based compensation -2.3 -2.7
Other income and expenses -0.2 0.0
Operating income 14.6 7.7
Net financial income 1.3 0.4
Tax expense -2.3 -2.2
Net profit/loss (group share) 13.6 6.0
Net profit per basic share 0.18 0.08
Net profit per diluted share 0.17 0.08
In 2010, Gameloft consolidated sales reached EUR141 million, up by 16% year on year. This solid growth was driven by sales in emerging countries and by the massive success of Gameloft games on Smartphone devices around the world. Gameloft has successfully positioned itself as a leading game publisher on Apple's App Store since launch and has seen its sales on iPhone and iPad grow by 63% in 2010.
The robust growth in sales and efficient cost control in the company's three departments, R&D, Sales & Marketing and Administration, have allowed Gameloft to grow its current operating income by 64% in 2010. Therefore the current operating income of fiscal year 2010 stands at EUR17.1 million compared with EUR10.4 million in 2009.
Gameloft continues to benefit from investments in its development and distribution abilities. These investments enabled the company to grow quickly and to position itself as one of the top industry leaders. It has also led to a steady increase of its profitability in the past couple of years: Gameloft's 2010 operating margin stands at 12.1%, compared with 8.6% in 2009 and with 3.0% in 2008.
The annual impact from expensing stock options is EUR2.3 million. Net financial income amounted to EUR1.3 million and is comprised of exchange gains and interest on the company's net cash.
The full year net profit stands at EUR13.6 million, up 127% compared with 2009. The Group's net margin reached 9.6% compared with 4.9% in 2009. Earnings per share and fully diluted earnings per share stand at 0.18EUR and 0.17EUR respectively.
Healthy Financial Position
Gameloft's financial position was very solid on December 31, 2010. The company's equity stood at EUR77.8 million and net cash and cash equivalents totaled EUR25.1 million. Cash generation was strong during 2010: Gameloft's self-financing capacity reached EUR17.2 million compared with EUR10.7 million in 2009 and net cash increased by EUR5.4 million. Therefore, the company has the financial resources necessary to continue its fast growth and take market share around the world.
Outlook for 2011
- Gameloft should continue to win over market share in Java and Brew phones, as a result of the progressive withdrawal of a large number of competitors. Emerging countries should continue to help drive growth as well.
- The recent and future releases of high-performance Smartphones from Apple, Samsung, Nokia, LG, Sony Ericsson, HTC and Google should continue sustaining Gameloft's growth in the upcoming quarters.
- The release of new gaming devices such as tablets, Smart TVs and the next generation of set top boxes should allow Gameloft to continue its diversification on additional platforms.
- The emergence of social gaming on networks such as Facebook could provide the company with interesting growth opportunities. Gameloft aims at becoming one of the major players in social gaming within the next 3 to 5 years. After launching Green Farm, the company's first social game which is present on six different social networks around the world and already profitable, Gameloft plans to release a new slate of social games covering all genres. The games will also be available on mobile phones. The company's knowledge of the mobile industry coupled with its development and deployment capacity, enable Gameloft to be well positioned to make rapid progress in the space.
Therefore, the company is expecting further growth in 2011 in terms of sales, profitability and net cash. In the long term, the company appears to be in an ideal position to benefit from the rapid emergence of the digital distribution of video games on smartphones, tablets, TVs, consoles and social networks.
Sales for the first quarter of 2011 will be published on 27 April 2011.
About Gameloft
A leading developer and publisher of digitally distributed games, Gameloft(R) has established itself as one of the top innovators in its field since 2000. Gameloft creates games for all digital platforms, including mobile phones, smartphones and tablets (including Apple(R) iOS and Android(R) devices), set top box, connected TVs and consoles. Gameloft partners with leading international brands such as UNO(R), Spider-Man(R), James Cameron's Avatar(TM), Ferrari(R) and Sonic Unleashed(R). Gameloft also operates its own established franchises, such as Real Football, Asphalt(TM), Modern Combat 2 : Black Pegasus and N.O.V.A Near Orbit Vanguard Alliance(R). Gameloft is present in all continents, distributes its games in 100 countries and employs over 4,000 developers.
Gameloft is listed on the Paris Stock Exchange (ISIN: FR0000079600, Bloomberg: GFT FP, Reuters: GLFT.PA).
P&L (EURK) 2010 2009
Revenue 140 958 121 972
Other revenue from the activity 149 334
Cost of sales -19 434 -15 528
Gross margin 121 673 106 778
R&D -65 687 -57 421
Sales and Marketing -26 469 -28 124
Administration -11 324 -9 164
Other operating income and expenses -1 122 -1 629
Current operating income 17 072 10 439
Stock-based compensation -2 283 -2 686
Other income and expenses -222 -41
Operating income 14 567 7 712
Cost of net financial indebtedness 123 88
Interest income 6 625 2 669
Interest expense -5 437 -2 312
Net financial income 1 312 445
Employee profit-sharing -117 -146
Tax expense -2 197 -2 040
Net profit/loss (group share) 13 566 5 972
Earnings per share 0.18 0.08
Fully diluted earnings per share 0.17 0.08
BALANCE SHEET (EURK) 31/12/2010 31/12/2009
ASSETS
Net intangible fixed assets 14 564 12 602
Net tangible fixed assets 5 964 4 579
Non-current financial assets 2 337 1 948
Assets from deferred assets 4 066 2 762
Total non-current assets 26 932 21 892
Inventory 0 457
Clients receivables 42 100 32 626
Cash and cash equivalents 27 038 19 804
Other current assets 10 826 8 674
Total current assets 79 965 61 562
TOTAL 106 896 83 454
LIABILITIES
Capital 3 754 3 740
Issue premium 67 452 66 593
Reserves -6 990 -16 368
Result 13 566 5 972
Shareholders' equity 77 783 59 936
Non-current liabilities 2 307 1 639
Current liabilities 26 807 21 878
TOTAL 106 896 83 454
Cash flow statement (EURK) 2010 2009
Operating transactions
Net profit/loss 13 566 5 972
Depreciation of tangible and intangible assets 15 055 12 483
Result from stocks options and assimilated 2 283 2 686
Tax paid 95 -165
Sales of assets 186 83
Capitalized R&D expense -8 546 -4 601
License acquisition -5 455 -5 782
Self-financing capacity 17 184 10 675
Change in inventories 457 1 971
Change in trade receivables -11 474 61
Change in operating liabilities 2 767 -3 690
Change in the working capital requirement -8 250 -1 657
Operating cash flow 8 935 9 018
Investment-related cash flow
Acquisitions of intangible fixed assets -684 -718
Acquisitions of tangible fixed assets -4 016 -2 362
Acquisition of other fixed financial assets -1 184 -723
Asset sales 65 110
Repayment of loans and other financial assets 138 870
Change in scope 79 80
Other 0 -11
Total transactions linked to investments -5 603 -2 754
Total flows from financing activities 814 2 839
Impact of conversion differentials 1 237 -102
Change in cash 5 384 9 002
Net cash at the beginning of the year 19 749 10 748
Net cash at the end of the year 25 133 19 749
For more information, consult http://www.gameloft.com
SOURCE Gameloft
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