Glu Mobile reports $23.7m revenues for Q2

Glu has reported second-quarter revenues of $23.7 million, up 45 per cent from the same period last year.

However, the company's GAAP net losses have also increased to $6.6 million for the quarter, compared to $898,000 for Q2 last year.

The company says it did well in Europe and better than expected in China during the quarter, but president and CEO Greg Ballard said there had been a "softening in the US market".

Although undoubtedly true, the quote may raise eyebrows given Ballard's words back in June in an interview with PocketGamer.biz, when he said Glu wasn't suffering in the US like its rivals, claiming that "some of the other folks who have said negative things about the US market are maybe some of the smaller guys who've been experiencing difficulties everywhere else, not just the US".

It seems there has been a US slowdown after all. In the ensuing Q2 conference call, Ballard said the US slowdown covered all the US operators, but highlighted Verizon Wireless, which apparently started charging customers extra if they downloaded a game without being on a data plan. Ballard said this may impact negatively on sales.

More positive news is that Glu continues to spread sales out among its catalogue, generating around 32 per cent of its Q2 revenues from its top ten games, as opposed to around 53 per cent in Q2 last year, and 43 per cent in Q1 this year.

The publisher also says that its own-IP mobile games are helping its gross margins, and Ballard claimed that sales of Speed Racer didn't meet Glu's expectations, but were better than the movie's flop status would suggest.

Glu also outlined its expectations for the third quarter, when it expects to generate GAAP revenue of $24-24.7 million, but post a GAAP net loss of $5.9-6.3 million.

Meanwhile, the company says revenues for 2008 as a whole are expected to be between $95.3 million and $97 million. That's less than its previous forecast of up to $100 million.

Finally, Ballard addressed a question about Glu's decision to only release one launch game for the iPhone, Space Monkey, saying the company is taking a "measured approach" to Apple's handset.