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2015 Annual Results

Sales of €256.2M, up 13%

Gross profit up 16%

Current operating income of €2.1M

Net cash of €36.9M

Paris (France), March 21, 2016 – Gameloft, a leading digital and social game developer, releases its annual results for the fiscal year ended December 31, 2015.

(in millions of €)

2015

H2 2015

H1 2015*

2014*

Sales

256.2

128.7

127.4

227.3

Cost of sales

-38.6

-18.0

-20.6

-40.1

Gross profit

217.5

110.7

106.8

187.2

R&D *

-152.9

-73.0

-79.9

-141.6

Sales and marketing *

-44.0

-23.2

-20.9

-29.9

Administration *

-17.4

-7.8

-9.5

-16.0

Other operating income and expenses

-1.1

-0.6

-0.5

-0.7

Current operating income

2.1

6.1

-4.0

-1.1

Stock-based compensation

-3.3

-1.7

-1.5

-3.1

Other income and expenses

-10.3

-7.8

-2.5

-0.7

Operating income

-11.5

-3.4

-8.1

-4.9

Financial income

-4.1

-0.7

-3.5

6.7

Net income before tax

-15.6

-4.1

-11.5

1.8

Tax expense

-8.6

-3.5

-5.0

-8.1

Net income

-24.2

-7.6

-16.6

-6.4

* To facilitate the interpretation of the Group’s performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.

“Driven by the strong performance of our game services and regular launches of new titles, Gameloft’s sales have increased by 13% in 2015. It is a solid performance that highlights the excellent work done by our teams and the quality of our franchises,” states Michel Guillemot, CEO of Gameloft. “Our 2015 strategic plan, which translated to a global reorganization of teams and significant cost cutting measures, has started to bear fruit. The cost of this transformation, which affected almost 20% of the company’s staff, including 850 positions closed, has weighed on the net income of the fiscal year but has allowed us to restore Gameloft’s current operating profitability as early as the second half of 2015. Moreover, during fiscal year 2015 the company has completed the implementation of its integrated advertising agency, which is now operating at full capacity. In the early stages of a major development cycle focused on programmatic advertising, Gameloft has a new organization centered on the efficiency and creativity of its development teams and is structurally profitable.”

Selected Financial Highlights and Metrics

  • Fiscal year 2015 sales reached €256.2 million, up 13% year on year, and up 6% on a constant-exchange-rate basis. 

  • EMEA accounted for 30% of the company’s annual sales; North America, 25%; Asia-Pacific, 30%; and Latin America, 15%.

  • Monthly and daily active users averaged 166 million and 21 million respectively in fiscal year 2015.

  • The 2015 gross profit margin stood at 85%, up 16%. It was 82% in 2014.

  • H2 2015 current operating income reached €6.1 million, up €10.1 million compared to H1 2015. The current operating profit margin in H2 reached 5%.

  • The operating income in 2015 of -€11.5 million includes a restructuring cost of €10.3 million. In total, the company closed 10 development studios from December 2014 to the end of January 2016, representing gross savings of approximately €35.0 million over a full year.  

  • The financial income of -€4.1 million includes a one-off loss of €3.0 million due to the devaluation of the Venezuelan Bolivar.

  • Tax expense in 2015 reached €8.6 million, of which €4.7 million consists of withholding tax. The amount of unrecognized deferred tax reached €16.0 million at the end of 2015, compared to €8.2 million at the end of 2014.

  • The balance sheet structure of the company remains sound with a net cash position of €36.9 million on December 31, 2015, a slight increase compared to June 30, 2015.

    Selected Product Highlights

  • In 2015, Gameloft was ranked the #2 game developer in the world on iOS and Google Play by the number of games downloaded, according to the rankings from App Annie.

  • Gameloft’s own franchises accounted for nearly two thirds of sales in 2015.

  • Gameloft released 16 new titles in 2015: Dragon Mania Legends®, Puzzle Pets, Immortal Odyssey™, Age of Sparta™, Dungeon Hunter 5, Battle Odyssey™, Ice Age® Avalanche, Magna Memoria®, Siegefall®, March of Empires™, Order & Chaos 2: Redemption™, CSI: Slots™, TRIVIAL PURSUIT & Friends®, Country Friends, Sniper Fury™ and Gods of Rome®.

  • In February 2016, Gameloft and GungHo, one of the largest mobile gaming companies in Japan, announced a strategic partnership, the first step of which is distribution in Japan of the game Disney Magic Kingdoms by GungHo teams.

  • Gameloft Advertising Solutions has recently concluded 10 partnership agreements with programmatic platforms enabling the company to multiply its access to advertising trading desks used by main global advertisers.

  • Gameloft Advertising Solutions successfully released over 1,000 advertising campaigns since its creation.

    Financial and Business Outlook

    Gameloft will be hosting a dedicated Investor Session at its London offices on March 22 at 2:30 PM GMT during which the senior management team will detail its strategic plan for the company. The details of this strategic plan will be made public in a press release that will be distributed on March 22 before the market opens. A presentation of this strategic plan will be made available online on the company’s website.        

    The Group’s first-quarter sales for 2016 will be published on April 28, 2016, after the market closes.

About Gameloft

A leading publisher of digital and social games, Gameloft® has established itself as one of the top innovators in its field since 2000. Gameloft creates games for all digital platforms, and with a monthly audience of 166 million unique players offers advertisers a unique level of visibility and engagement through Gameloft Advertising Solutions. Gameloft operates its own established franchises such as Asphalt®, Order & Chaos, Modern Combat and Dungeon Hunter and also partners with major rights holders including Universal, Illumination Entertainment, Disney®, Marvel®, Hasbro®, Fox Digital Entertainment, Mattel® and Ferrari®. Gameloft is present on all continents, distributes its games in over 100 countries and employs 6,000 developers.

Gameloft is listed on NYSE Euronext Paris (NYSE Euronext: GFT.PA, Bloomberg: GFT FP, Reuters: GLFT.PA). Gameloft’s sponsored Level 1 ADR (ticker: GLOFY) is traded OTC in the US.

For further information:

Laure d’Hauteville

Deputy CFO

E-mail: Laure.dHauteville@gameloft.com

For more information, consult www.gameloft.com

                                      

Auditing procedures on the consolidated accounts have been performed. Audit certification will be released after the annual financial report has been verified.

 

PROFIT & LOSS STATEMENT (K€)

2015

2014*

Revenue

256,175

227,279

Cost of sales

-38,626

-40,105

Gross margin

217,549

187,175

R&D *

-152,932

-141,647

Sales and Marketing *

-44,046

-29,888

Administration *

-17,388

-16,032

Other operating income and expenses

-1,108

-703

Current operating income

2,075

-1,095

Stock-based compensation

-3,273

-3,100

Other income and expenses

-10,279

-682

Operating income

-11,477

-4,877

Cost of net financial indebtedness

1,885

2,783

Exchange rate gains

23,235

20,316

Exchange rate losses

-29,247

-16,441

Net financial income/loss

-4,126

6,658

Net income/loss before tax

-15,603

1,782

Tax expense

-8,574

-8,136

Net profit/loss (group share)

-24,177

-6,355

Earnings per share

-0.28

-0.07

Fully diluted earnings per share

-0.28

-0.07

* To facilitate the interpretation of the Group’s performance, some consolidated financial data from fiscal year 2015 are compared to restated data (pro forma) effective as of January 1, 2014, of the effects of the reorganization that occurred during 2015.

BALANCE SHEET (K€)

31/12/2015

31/12/2014

ASSETS

Net intangible fixed assets

8,773

8,460

Net tangible fixed assets

17,933

22,868

Other non-current assets

5,640

5,883

Deferred tax assets

17,387

16,456

Total non-current assets

49,733

53,667

Client receivables

67,363

63,914

Other receivables

24,330

27,258

Cash and cash equivalents

36,968

56,264

Total current assets

128,661

147,436

TOTAL

178,394

201,104

LIABILITIES

Capital

4,273

4,281

Issue premium

90,575

91,165

Reserves

43,401

48,741

Net income

-24,177

-6,355

Shareholder equity

114,073

137,833

Non-current liabilities

7,194

8,562

Current liabilities

57,127

54,709

TOTAL

178,394

201,104

CASH FLOW STATEMENT (K€)

2015

2014

Net income

-24,177

-6,355

Amortization and provisions

18,971

18,598

Income related to stock options and other

3,273

3,100

Other non-disbursed expenses

13

108

Gains on disposal of assets

1,451

122

Tax paid

-3,036

-3,486

Self-financing capacity

-3,506

12,086

Change in trade receivables

-1,465

-2,582

Change in operating liabilities

6,459

-831

Change in working capital

4,994

-3,413

Operating cash flow

1,488

8,674

Acquisitions of licenses

-5,148

-3,810

Acquisitions of intangible fixed assets

-2,247

-2,341

Acquisitions of tangible fixed assets

-7,156

-15,019

Acquisitions of other fixed financial assets

-838

-1,381

Repayment of other financial assets

456

1,122

Other cash flow

-47

109

Net cash flows linked to investments

-14,980

-21,320

Free cash flow

-13,492

-12,646

 

Capital increase

2,284

4,598

Share buyback

-3,544

-1,935

Other

49

1,444

Net cash flows from financing activities

-1,210

4,107

Effect of exchange rate fluctuations

-1,101

916

 

Change in cash and cash equivalents

-15,804

-7,623

 

Net cash at the beginning of the year

52,706

60,329

Net cash at the end of the year

36,903

52,706