Gameloft’s earnings rise 17% to $217 million in 2011

Gameloft reports a 17 percent year-on-year increase in total sales for 2011 to €164.4 million ($217 million). The French mobile developer attributes the growth largely to smartphones, tablets and international audiences. Between Jan. 1 2011 and Dec. 31, 2011, the company generated a record operating income of €21.1 million ($27.8 million), up 24 percent over its 2010 income of €17.1 million ($22.6 million). The company’s net profit for the calendar year rose 34 percent to €18.2 million ($24 million). Smartphone and tablet games continued to account for an increasing share of the company’s earnings. Gameloft reported its fourth quarter sales on the devices increased 64 percent year-on-year and now represent 41 percent of total sales. That’s up dramatically from the company’s third quarter results, when it reported smartphones and tablets accounted for 34 percent of its earnings. Overall, the company reported its library of freemium and paymium (paid games with additional in-app purchases) have seen almost 125 million downloads across iOS and Android, with a userbase of 35 million monthly active users. Europe accounted for 30 percent of the company’s overall sales, North American 29 percent and emerging countries 41 percent. While the company’s sales, income and profit all rose, Gameloft reported a net financial loss of - €1.1 million (- $1.45 million) for year due to the strength of the Euro in the first half of 2011. It also swallowed a one-time €5.3 million ($7 million) charge for console and PC social games it had previously capitalized on its balance sheet. Although feature phones make up a declining share of Gameloft’s business, the company has just launched its first freemium feature phone game and revealed it will be launching several more in 2012. The company also announced it will launch branded games based on The Dark Knight Rises, Ice Age, Men in Black 3, The Avengers, The Amazing Spider Man, Littlest Pet Shop and My Little Pony this year. The company's shares dipped slightly following the news, falling 1.42 percent to €4.87 ($6.42). The company's current market cap is €369.15 million ($487.2 million).

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Gameloft’s earnings rise 17% to $217 million in 2011

Kathleen De Vere

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Kathleen De Vere