Glu sees FY15 Q1 sales up 56% to $69.5 million

Keeping up with Kim Kardashian: Hollywood

Glu sees FY15 Q1 sales up 56% to $69.5 million

Glu Mobile (NASDAQ: GLUU) has announced its FY15 Q1 financials, for the three months ending 31 March 2015.

Revenue was $69.5 million, up 56 percent year-on-year, but down 5 percent quarter-on-quarter.

Net income was $1.1 million, compared to $100,000 12 months ago, but down 21 percent on the $1.4 million booked in FY14 Q4.

Glu ended the quarter with cash and equivalents of $65.7 million.

More than one more time

As has been the case since its 31 May release, the main driver of Glu's sales has been its celebrity lifestyle game Kim Kardashian: Hollywood, which generated 31 percent of non-GAAP revenues in 2014, from 33.3 million downloads. 

Three months ago, Glu announced it had signed up Katy Perry and today it added to its portfolio with the news it's signed Britney Spears for an eight year exclusive deal.

The first game will launch in H1 2016.

“Glu delivered a strong start to 2015 evidenced by our ability to exceed expectations across all key metrics, particularly non-GAAP revenue which increased 33%,” stated CEO Niccolo de Masi.

“The outperformance during the first quarter was driven by the ongoing traction of Kim Kardashian: Hollywood, Racing Rivals, Deer Hunter 2014, and Contract Killer: Sniper.”

Big in China

Equally significant for the company's longterm future is a deal with Chinese game publisher Tencent.

Kim Kardashian: Hollywood has put Glu back in the black

This strategic investment of $126 million for 14.6 percent of the company will help Glu in the Chinese market, while strengthening Tencent's operations internationally.

“Collaboration between our companies will enable Glu to tailor its games more powerfully by tapping Tencent’s strength in online, social and MMO capabilities," commented Tencent SVP Steven Ma.

Glu now expects its FY15's non-GAAP revenues to be between $262 million and $287 million, generating income of between $25.3 million and $30.3 million.

[source: Glu Mobile]

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