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Boosted by rising overseas smartphone market, Com2uS sees FY11 sales up 17% to $31 million

But rising costs means net income remains static

Boosted by rising overseas smartphone market, Com2uS sees FY11 sales up 17% to $31 million
Korean mobile game publisher Com2uS (KOSDAQ: 078340) has announced its financial results for FY2011, the twelve months ending December 31.

Sales were 36.2 billion Won (around $31 million), up 17 percent year-on-year.

Net income was 4.1 billion Won ($3.5 million), up 0.1 percent.

The reason for the static profits was a rise in operating expenses, up 16 percent year-on-year as Com2uS increased staff numbers, marketing and service fees.

Getting smarter

In terms of the company's sales growth, the major source was the sale of smartphone games and in-app purchases.

This part of the business grew 159 percent year-on-year to 23 billion Won (around $20 million).

It accounted for 64 percent of sales during the year.

Going global

In November, the Korean version of the Apple App Store opened a dedicated games category for the first time.

However, the majority of smartphone growth came from international markets, with the share of overseas sales climbing to 49 percent (worth 17.6 billion Won, or $15 million).

This is up from 28 percent during FY2010.

The company pointed to the success of games such as Homerun Battle 2, Tower Defense, 9innings and Tiny Farm is key drivers.

During the year, Com2uS' feature phone business dropped 50 percent to 10 billion Won ($8.6 million).



Indeed, as most of such sales are from Korea, Com2uS' domestic sales dropped 16 percent to 18.6 billion Won ($16 million).

Past quarter

As for the company's Q4 figures for the period October to December, sales were up strongly, 29 percent year-on-year to 11 billion Won ($9.5 million).

Smartphones made up 74 percent of Q4 sales, or 8.3 billion Won ($7.2 million).

Net income was 1.12 billion Won ($970,000), down 0.3 percent.

Com2uS expects FY2012 sales to be 54.6 billion Won (around $47 million), up 50 percent, with net income up 15 percent to 4.7 billion Won ($4 million).

It estimates smartphone sales will make up 88 percent of this total, while the share of international sales will be 67 percent.

[source: Com2uS IR/PDF]

Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.