Earnings: Gameloft Revenues Increase 46 Percent Over 2006

• Posted by James Quintana Pearce
• Thu 15 Mar 2007 04:56 PM

Mobile game company Gameloft has released its earnings report for 2006. Revenues rose from 46.8 million euros (US$61.9 million) in 2005 to 68.4 million euros (US$90.5 million). Download revenues grew by 78 percent, and represented 91 percent of annual sales. For the year Gameloft’s current operating income was 2.5 million euros, but stock option expenses of 3.0 million saw that go into the red. During the first half of 2006 the operating margin was -5.9 percent, but a slowdown in employee growth saw that change to 11.4 percent in the second half of the year. Gameloft had operating profits of 19.2 million euros (US$25.4 million) in 2006 because of the sale of its interest in jeuxvideo.com, which saw a net capital gain of 20.4 million euros. Net profit stood at 16.3 million euros.
For 2007 Gameloft predicts sales will be between 90-100 million euros (US$119-132 million) and is aiming for operating profitability of 10 percent. The company also noted it has over 2,300 developers around the world (which dwarfs pretty much everyone else) and that it has more than 120 games generating recurrent revenue, with no single game representing more than 10 percent of company’s sales, making it less vulnerable in a hits-based business.