GLU
By Rafat Ali - Thu 02 Aug 2007 10:46 AM PST
Among
the only pureplay public company in mobile content space in U.S., Glu
Mobile reported its Q2 earnings today: it had a loss of $898,000,
compared with $2.7 million a year-ago. Revenues rose 43 percent to
$16.4 million, but below expectations of $16.7 million, according to Reuters Estimates.
Some other numbers:
-- Glu's top ten titles represented approximately 53 percent of revenue
in Q2, which was down from 62 percent of revenue from a year ago.
-- The average revenue per top ten title was $873,000, an increase of 23 percent compared to $710,000 in the year-ago quarter.
Release | Call Webcast
From Needham analyst Mark May, in a research note this morning: Management confirmed on the call that it would likely not renew certain licenses with Hasbro when they expire at the end of this year. While those titles likely represent between 13-15% of revenues today, management indicated that they are in decline and represented less than 10% of forecasted CY08 revenues...The largest revenue-generating title affected is Monopoly Here and Now, a title that represented roughly 13% (or $2.0M) of revenue in 1Q07 but that fell to a "less than 10%" of revenue title in 2Q07. While management did not disclose the percent or amount of revenue in 2Q07 from titles related to these expiring licenses, they did say that combined they represented less than 10% of forecasted revenue in CY08. We estimate these titles currently generate somewhere in the ballpark of 13-15% of total revenue. Management noted that many of the more meaningful titles that are part of this license have begun to decline in their ranking and revenue. Moreover, management stressed that it has a robust pipeline of new titles, some part of the recently announced partnerships with the likes of Activision, Warner Bros., and Konami, that should help to offset this lost revenue next year."