Euro's strength hits Gameloft as it posts flat H1 2011 profits of 5.3 million euros

Otherwise, sales up 15 percent year-on-year

Euro's strength hits Gameloft as it posts flat H1 2011 profits of 5.3 million euros
In accordance with French accounting practice, mobile publisher Gameloft (GFT.PA) has announced full details of its financial figures for the first half of 2011, the six months ending 30 June.

As previously released, consolidated sales were €76.8 million (around $110 million), up 15 percent year-on-year.

What's new is the company's current operating income, which was €8.9 million, (around $13 million). This was up 53 percent compared to €5.8 million a year ago.

Taking into account stock-based compensation and other operational expenses, operating income was €7.9 million, up 68 percent year-on-year.

Currency converters

However, thanks to losses accrued due to the strength of the Euro against other currencies, notably the dollar, net profit was €5.3 million (around $7.5 million), exactly the same as the half year total in 2010, when Gameloft actually gained €1.3 million of income thanks to currency fluctuations.

Additionally, Gameloft's largest single expense is game development - listed as R&D - which in H1 2011 was up 16 percent to €37 million (around $53.5 million), compared to H1 2010.

Gameloft ended the six month period with net cash and cash equivalents worth €26.1 million (around $38 million).

Divide and conquer

Dealing with its outlook for the next 12 months, Gameloft said it expects to grow its share of the legacy and shrinking Java and Brew game market as other companies switch to smartphones. During the first 6 months of 2011, 30 percent of Gameloft's sales came from smartphones and tablets.

It also expects social networks, smart TVs and next-generation set-top boxes to provide growth opportunities in future.

[source: PR Newswire]
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