GAMELOFT SALES Q4 05
Record fourth-quarter sales in 2005 of €15.5 million. Full-year sales exceed targets, surging 102% to €46.8 million
Paris, January 26, 2006
Full year revenues
Gameloft posted consolidated sales of 15.5 million in the final quarter of 2005, up by 71% from the previous year. Full-year sales surged 102% to 46.8 million. This was the third consecutive year of triple-digit growth for Gameloft.
[table]Sales ( millions)*|2005|2004|Change
1str quarter|9.9|4.0|+ 146%
2nd quarter|10.5|4.7|+ 122%
3rd quarter|11.0|5.5|+ 101%
4th quarter|15.5|9.1|+ 71%
Annual sales|46.8|23.2|+ 102%[/table]
*Rounded figures
Mobile gaming generated 96% of total 2005 sales, increasing by 105% over 2004. Internet revenues accounted for 4% of total sales, up 44%.
The share of international revenues further increased during the fourth quarter, once again highlighting Gameloft's ability to sell its games worldwide. Europe accounted for 53% of fourth-quarter sales, North America 31% and the rest of the world (notably, Asia and South America), 16%.
For the full year, Europe accounted for 57% of total sales, North America 29% and the rest of the world 13%. In 2004, Europe, North America and the rest of the world accounted for respectively 68%, 26% and 6% of Gameloft's total sales.
2005 highlights
With annual growth of more than 100%, the company exceeded its previous growth targets of 90%. This achievement is partly due to the excellent performance of games launched between 2002 and 2004 that still account for 68% of Gameloft downloads in 2005. The immediate success of many games rolled out in 2005 also fueled the strong growth. New York Nights: Success in the City, Midnight Pool, Splinter Cell: Chaos Theory and War of the Worlds, for instance, were all among Gameloft's 10 top-selling games in 2005. Finally, the success of King Kong the Official Mobile Game of the Movie, launched in late November, contributed significantly to the very strong fourth-quarter performance and represents to date Gameloft's best-selling game for a single month. The excellent quality of Gameloft's portfolio of games and licenses combined with its ability to launch creations on all mobile phone models ensures both recurring revenue from its back catalogue and rapid success for recently launched games.
The company's strong performance can also be attributed to the distribution network that has been put in place since 2000. As the largest such network in the wireless gaming industry, covering more than 150 carriers in 70 countries, it ensures Gameloft's mobile games access to a worldwide audience as soon as they are released.
The growth of Java and Brew enabled phones has also driven the development of the mobile gaming market, providing Gameloft access to an increasingly large base of potential customers.
2006 outlook
With close to 2,000 employees at 2005 year-end, Gameloft is well positioned to support the increasing number of phone models selected by operators. A development capability unique in the mobile gaming industry combined with the quality of its games should drive continued sales and market share gains in 2006.
On this basis, Gameloft announces guidance for 2006 sales of 65 million representing growth of 40%, accompanied by an improvement in the operating margin. This new year of strong growth will be made possible by the launch of some thirty new mobile games in 2006 and recurring revenue from the thousands of game versions Gameloft has released over the last few years.
Gameloft's long-term goal is to become a leader in a market of more than 2 billion mobile phones for which the penetration rate of Java and Brew enabled devices will exceed 90%.
2005 earnings will be published on March 21, 2006.
Contact: Anne-Laure Desclèves
Tel: + 33 (0)1 58 16 20 82