As is the way with French accounting rules, Gameloft (EPA:GFT) has announced its consolidated financials for the first six months of 2012, ending 30 June.

As previously announced, sales over the half year period were up 24 percent to €95.2 million (around $120 million).

Now, however, we know that operating income was €4.4 million (around $5.6 million), down 44 percent compared to the first half of 2011.

This was due to increased R&D costs, up 35 percent to €49.9 million ($63 million).

Although Gameloft noted that €3.9 million ($5 million) of this was due to a technicality in terms of how it has to account for its now canned PC and console development compared to mobile and tablet games.

Tweaking the mix

Gameloft also booked a charge of €1 million ($1.3 million) following the restructuring of its Chinese operations. It has shut down its Shanghai studio as well as some QA and porting operations to focus on what it calls 'high value-added activities'.

Half year net profit was €4.6 million ($5.8 million), down 17 percent year-on-year.

However, stripping out R&D technicalities, Gameloft said net profit would have been up 115 percent year-on-year.

Getting bigger, better

In terms of global breakdown, Gameloft's business is well balanced with North America representing 32 percent of H1 sales; Europe and the Middle East, 26 percent; Asia Pacific 22 percent; and Latin America 21 percent.

Gameloft's smartphone and tablet sales during its second quarter grew 199 percent year-on-year, and these sales are now larger than the company's still significant Java operations.

Indeed, revenue from in-app purchases and advertising now accounts for 60 percent of sales.

Gameloft revealed it has 57 million monthly active users.

Onwards to 2013

And looking forward, the company reckons it's fighting fit.

It had record net cash of €43.7 million ($55.3 million) at the end of June, up €6.7 million ($8.5 million) over the six months.

With 20 titles planned for release in the second half of 2012 - including Wild Blood, Modern Combat 4, My Littlest Petshop and Heroes of Order & Chaos - it expect full year results to be significantly higher.

Raising its original prediction. it's now targeting full year revenue of €205 million (around $260 million), which would be growth of 25 percent.

[source: Gameloft]