GAMELOFT SE PARIS, March 21, 2016 /PRNewswire/ --
Sales of EUR256.2M, up 13%
Gross profit up 16%
Current operating income of EUR2.1M
Net cash of EUR36.9M
Gameloft, a leading digital and social game developer, releases its annual results for the fiscal year ended December 31, 2015.
(in millions of EUR) 2015 H2 2015 H1 2015* 2014*
Sales 256.2 128.7 127.4 227.3
Cost of sales -38.6 -18.0 -20.6 -40.1
Gross profit 217.5 110.7 106.8 187.2
R&D * -152.9 -73.0 -79.9 -141.6
Sales and marketing * -44.0 -23.2 -20.9 -29.9
Administration * -17.4 -7.8 -9.5 -16.0
Other operating income and
expenses -1.1 -0.6 -0.5 -0.7
Current operating income 2.1 6.1 -4.0 -1.1
Stock-based compensation -3.3 -1.7 -1.5 -3.1
Other income and expenses -10.3 -7.8 -2.5 -0.7
Operating income -11.5 -3.4 -8.1 -4.9
Financial income -4.1 -0.7 -3.5 6.7
Net income before tax -15.6 -4.1 -11.5 1.8
Tax expense -8.6 -3.5 -5.0 -8.1
Net income -24.2 -7.6 -16.6 -6.4
* To facilitate the interpretation of the Group's performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.
"Driven by the strong performance of our game services and regular launches of new titles, Gameloft's sales have increased by 13% in 2015. It is a solid performance that highlights the excellent work done by our teams and the quality of our franchises," states Michel Guillemot, CEO of Gameloft. "Our 2015 strategic plan, which translated to a global reorganization of teams and significant cost cutting measures, has started to bear fruit. The cost of this transformation, which affected almost 20% of the company's staff, including 850 positions closed, has weighed on the net income of the fiscal year but has allowed us to restore Gameloft's current operating profitability as early as the second half of 2015. Moreover, during fiscal year 2015 the company has completed the implementation of its integrated advertising agency, which is now operating at full capacity. In the early stages of a major development cycle focused on programmatic advertising, Gameloft has a new organization centered on the efficiency and creativity of its development teams and is structurally profitable."
Selected Financial Highlights and Metrics
- Fiscal year 2015 sales reached EUR256.2 million, up 13% year on year, and up 6% on
a constant-exchange-rate basis.
- EMEA accounted for 30% of the company's annual sales; North America, 25%; Asia-Pacific,
30%; and Latin America, 15%.
- Monthly and daily active users averaged 166 million and 21 million respectively in
fiscal year 2015.
- The 2015 gross profit margin stood at 85%, up 16%. It was 82% in 2014.
- H2 2015 current operating income reached EUR6.1 million, up EUR10.1 million compared
to H1 2015. The current operating profit margin in H2 reached 5%.
- The operating income in 2015 of -EUR11.5 million includes a restructuring cost of
EUR10.3 million. In total, the company closed 10 development studios from December
2014 to the end of January 2016, representing gross savings of approximately EUR35.0
million over a full year.
- The financial income of -EUR4.1 million includes a one-off loss of EUR3.0 million due
to the devaluation of the Venezuelan Bolivar.
- Tax expense in 2015 reached EUR8.6 million, of which EUR4.7 million consists of
withholding tax. The amount of unrecognized deferred tax reached EUR16.0 million at
the end of 2015, compared to EUR8.2 million at the end of 2014.
- The balance sheet structure of the company remains sound with a net cash position of
EUR36.9 million on December 31, 2015, a slight increase compared to June 30, 2015.
Selected Product Highlights
- In 2015, Gameloft was ranked the #2 game developer in the world on iOS and Google
Play by the number of games downloaded, according to the rankings from App Annie.
- Gameloft's own franchises accounted for nearly two thirds of sales in 2015.
- Gameloft released 16 new titles in 2015: Dragon Mania Legends(R), Puzzle Pets,
Immortal Odyssey(TM), Age of Sparta(TM), Dungeon Hunter 5, Battle Odyssey(TM), Ice Age
(R) Avalanche, Magna Memoria(R), Siegefall(R), March of Empires(TM), Order & Chaos 2:
Redemption(TM), CSI: Slots(TM), TRIVIAL PURSUIT & Friends(R), Country Friends, Sniper
Fury(TM) and Gods of Rome(R).
- In February 2016, Gameloft and GungHo, one of the largest mobile gaming companies in
Japan, announced a strategic partnership, the first step of which is distribution in
Japan of the game Disney Magic Kingdoms by GungHo teams.
- Gameloft Advertising Solutions has recently concluded 10 partnership agreements with
programmatic platforms enabling the company to multiply its access to advertising
trading desks used by main global advertisers.
- Gameloft Advertising Solutions successfully released over 1,000 advertising campaigns
since its creation.
Financial and Business Outlook
Gameloft will be hosting a dedicated Investor Session at its London offices on March 22 at 2:30 PM GMT during which the senior management team will detail its strategic plan for the company. The details of this strategic plan will be made public in a press release that will be distributed on March 22 before the market opens. A presentation of this strategic plan will be made available online on the company's website.
The Group's first-quarter sales for 2016 will be published on April 28, 2016, after the market closes.
About Gameloft
A leading publisher of digital and social games, Gameloft(R) has established itself as one of the top innovators in its field since 2000. Gameloft creates games for all digital platforms, and with a monthly audience of 166 million unique players offers advertisers a unique level of visibility and engagement through Gameloft Advertising Solutions. Gameloft operates its own established franchises such as Asphalt(R), Order & Chaos, Modern Combat and Dungeon Hunter and also partners with major rights holders including Universal, Illumination Entertainment, Disney(R), Marvel(R), Hasbro(R), Fox Digital Entertainment, Mattel(R) and Ferrari(R). Gameloft is present on all continents, distributes its games in over 100 countries and employs 6,000 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
Auditing procedures on the consolidated accounts have been performed. Audit certification will be released after the annual financial report has been verified.
PROFIT & LOSS STATEMENT (KEUR) 2015 2014*
Revenue 256,175 227,279
Cost of sales -38,626 -40,105
Gross margin 217,549 187,175
R&D * -152,932 -141,647
Sales and Marketing * -44,046 -29,888
Administration * -17,388 -16,032
Other operating income and expenses -1,108 -703
Current operating income 2,075 -1,095
Stock-based compensation -3,273 -3,100
Other income and expenses -10,279 -682
Operating income -11,477 -4,877
Cost of net financial indebtedness 1,885 2,783
Exchange rate gains 23,235 20,316
Exchange rate losses -29,247 -16,441
Net financial income/loss -4,126 6,658
Net income/loss before tax -15,603 1,782
Tax expense -8,574 -8,136
Net profit/loss (group share) -24,177 -6,355
Earnings per share -0.28 -0.07
Fully diluted earnings per share -0.28 -0.07
* To facilitate the interpretation of the Group's performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.
BALANCE SHEET (KEUR) 31/12/2015 31/12/2014
ASSETS
Net intangible fixed assets 8,773 8,460
Net tangible fixed assets 17,933 22,868
Other non-current assets 5,640 5,883
Deferred tax assets 17,387 16,456
Total non-current assets 49,733 53,667
Client receivables 67,363 63,914
Other receivables 24,330 27,258
Cash and cash equivalents 36,968 56,264
Total current assets 128,661 147,436
TOTAL 178,394 201,104
LIABILITIES
Capital 4,273 4,281
Issue premium 90,575 91,165
Reserves 43,401 48,741
Net income -24,177 -6,355
Shareholder equity 114,073 137,833
Non-current liabilities 7,194 8,562
Current liabilities 57,127 54,709
TOTAL 178,394 201,104
CASH FLOW STATEMENT (KEUR) 2015 2014
Net income -24,177 -6,355
Amortization and provisions 18,971 18,598
Income related to stock options and other 3,273 3,100
Other non-disbursed expenses 13 108
Gains on disposal of assets 1,451 122
Tax paid -3,036 -3,486
Self-financing capacity -3,506 12,086
Change in trade receivables -1,465 -2,582
Change in operating liabilities 6,459 -831
Change in working capital 4,994 -3,413
Operating cash flow 1,488 8,674
Acquisitions of licenses -5,148 -3,810
Acquisitions of intangible fixed assets -2,247 -2,341
Acquisitions of tangible fixed assets -7,156 -15,019
Acquisitions of other fixed financial assets -838 -1,381
Repayment of other financial assets 456 1,122
Other cash flow -47 109
Net cash flows linked to investments -14,980 -21,320
Free cash flow -13,492 -12,646
Capital increase 2,284 4,598
Share buyback -3,544 -1,935
Other 49 1,444
Net cash flows from financing activities -1,210 4,107
Effect of exchange rate fluctuations -1,101 916
Change in cash and cash equivalents -15,804 -7,623
Net cash at the beginning of the year 52,706 60,329
Net cash at the end of the year 36,903 52,706
SOURCE Gameloft
