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Wednesday 01 September, 2010

Gameloft

GAMELOFT Results for the first half of 2010

PR Newswire/Les Echos/

Paris, August 31, 2010

                    Results for the first half of 2010
                             11% sales growth
                Current operating income of EUR5.8M, up 29% 
                      Net profit of EUR5.3M, up 140%
                           Net Cash of EUR25.9M

2010 Half-Year Results

Gameloft's financial statements for the first half-year ending June 30, 2010
breaks down as follows:

In EUR millions                             S1 2010         S1 2009
Revenue                                      66.6            60.1
Other income                                  0.1             0.1

Cost of sales                                (9.4)           (7.7)

R&D                                         (32.0)          (29.2)
Sales & Marketing                           (13.7)          (13.8)
Administration                               (5.3)           (4.3)
Other income and expenses                    (0.5)           (0.6)

Current operating income                      5.8             4.5

Stock-based compensation                     (0.9)           (1.3)
Other operational revenues and expenses      (0.2)            0.0

Operating income                              4.7             3.2

Net financial income                          1.3             0.3
Tax expense                                  (0.7)           (1.2)

Net profit/loss (group share)                 5.3             2.2

Gameloft achieved consolidated sales of EUR66.6 million for the first half of
2010, up by 11% from the first half of 2009. The company's growth accelerated
during the second quarter of 2010. The activity continues to be driven by
increased market share in traditional Java and Brew phones, as well as by the
massive success enjoyed by Smartphones around the world.

The solid growth in sales and efficient  cost control in the company's three
departments, R&D, Sales & Marketing, and Administration, have resulted in a
substantial increase in Gameloft's operating and net income in the first half 
of 2010. The current operating income for the first six months of fiscal 
year 2010 stands at EUR5.8 million, up 29% compared to the first half of 2009. 
Therefore, the operating margin stands at 8.8%, compared to 7.6% during 
the first half of 2009.

The half-year impact from expensing stock options is EUR0.9 million. This 
charge does not have an impact on the company's equity and cash level. 
Interest income amounted to EUR+1.3 million and is comprised of exchange 
gains and interest on the company's net cash.

The net half-year profit stands at EUR5.3 million, up 140% compared to the 
first half of 2009. The Group's net margin reached 7.9% which more than doubled
compared to the first half of 2009. Earnings per share and fully diluted
earnings per share both stand at 0.07EUR.

Healthy Financial Position

Gameloft's financial position was very solid on June 30, 2010. The company's
equity stood at EUR69.6 million and net cash and cash equivalents totaled
EUR25.9 million. Cash generation was particularly strong during the first half
of the year. The company's self-financing capacity reached EUR6.9 million and 
on June 30, 2010 Gameloft's net cash increased by EUR6.2 million. Therefore, 
the company has the financial resources necessary to continue its fast growth 
and take market share around the world.

Outlook for 2010-2011

 •  Gameloft should continue to win over market share in Java and Brew phones,
    as a result of the progressive withdrawal of a large number of competitors.

 •  The recent and future releases of new high-performance Smartphones from
    Apple, Samsung, Nokia and Google should continue sustaining Gameloft's 
    growth in the upcoming quarters. Gameloft has become one of the top game 
    publishers on Apple's iPhone and iPad, and its AppStore revenues grew 82% 
    during the first half of 2010.

 •  The release of new devices that are suited for video games such as Apple's
    iPad will allow Gameloft to continue its diversification with other 
    formats and provide the company with interesting relays for growth. 
    Gameloft is one of the very few players in the market that has the 
    resources and know-how allowing it to be present systematically at the 
    launch of all the new downloadable consoles and tablets (iPad, 
    PlayStation Network, Nintendo DSiWare, Nintendo WiiWare, etc.).

Gameloft is renewing its growth target for sales, profitability and net cash
over the full year of 2010. In the long term, Gameloft appears to be in an 
ideal position to benefit from the rapid emergence of the digital distribution 
of video games on mobile phones, tablets and consoles.

Sales for the third quarter will be published on November 3, 2010 after the
market closes.

About Gameloft
Gameloft is the worldwide leader in developing and publishing downloadable 
video games. Gameloft is now positioned, after 10 years, as one of the most 
innovative companies in its field. The company designs games for mobile phones,
smartphones, iPhone, iPod touch and iPad for which the number of units should
exceed four billion in 2012.  As a pioneer in the new downloadable game console
market, Gameloft publishes games for WiiWare, DSiWare, Microsoft  Xbox LIVE
Arcade and PlayStation Network. Partnership agreements with major licensors
allow  Gameloft to associate the strongest international brands with such games
as Uno, Ferrari,  Shrek, CSI, Iron Man, Spiderman and Sonic. The company also
has its own brand portfolio  with established franchises such as Real Football,
Asphalt and Cerebral Challenge. Gameloft has locations on all continents, 
distributes  its  games  in  100  countries  and  has  its  own  production 
studios  with  over  3,500 developers. Gameloft is listed on the Paris Stock
Exchange (ISIN:  FR0000079600, Bloomberg: GFT FP,
Reuters: GLFT.PA).

Contact:
Anne-Laure Desclèves
Investor Relations
Tel +331 5816 2082
Email:  [email protected]

For more information, consult  www.gameloft.com

P&L (EURK)                                         S1 2010               S1
2009
Revenue                                           66,563                60,102
Other revenue from the activity                      114                   137
Cost of sales                                     -9,420                -7,720
R&D                                              -31,958               -29,234
Sales and Marketing                              -13,669               -13,847
Administration                                    -5,312                -4,310
Other income and operating expenses                 -476                  -587
Current operating income                           5,842                 4,541
Stock-based compensation                            -941                -1,261
Other operating revenue and expenses                -174                   -44
Operating income                                   4,727                 3,237
Cost of net financial indebtedness                    34                    58
Interest income                                    5,772                 1,965
Interest expense                                  -4,491                -1,739
Net financial income                               1,315                   284
Employee profit-sharing                              -24                   -78
Tax expense                                         -748                -1,248
Net profit/loss (group share)                      5,270                 2,194
Earnings per share                                  0.07                  0.03
Fully diluted earnings per share                    0.07                  0.03

BALANCE SHEET (EURK)                           30/06/2010           31/12/2009
ASSETS
Net intangible fixed assets                      14,720                12,602
Net tangible fixed assets                         5,249                 4,579
Non-current financial assets                      2,364                 1,948
Assets from deferred assets                       3,384                 2,762
Total non-current assets                         25,718                21,892
Inventory                                            60                   457
Clients receivables                              34,324                32,626
Cash and cash equivalents                        25,985                19,804
Other current assets                              8,207                 8,674
Total current assets                             68,577                61,562
TOTAL                                            94,294                83,454

LIABILITIES
Capital                                           3,744                 3,740
Issue premium                                    66,803                66,593
Reserves                                         -6,264               -16,368
Result                                            5,270                 5,972
Shareholders? equity                             69,552               
59,936
Non-current liabilities                           1,551                 1,639
Current liabilities                              23,191                21,878
TOTAL                                            94,294                83,454


Cash flow statement (EURK)                        S1 2010               S1
2009
Operating transactions
Net profit/loss                                   5,270                 2,194
Depreciation of tangible and intangible assets    6,500                 5,492
Result from stocks options and assimilated          941                 1,261
Tax paid                                             60                  -190
Sales of assets                                      37                    79
Capitalized R&D expense                          -3,015                -1,784
License acquisition                              -2,888                -3,214
Self-financing capacity                           6,903                 3,838

Change in inventories                               397                 1,619
Change in trade receivables                         -26                 7,086
Change in operating liabilities                    -744                -5,154
Change in the working capital requirement          -373                 3,551

Operating cash flow                               6,531                 7,389

Investment-related cash flow
Acquisitions of intangible fixed assets            -313                  -300
Acquisitions of tangible fixed assets            -1,643                  -960
Acquisition of other fixed financial assets        -648                   -27
Acquisition of controlling interests                 65                     4
Repayment of loans and other financial assets        51                   189
Change in scope                                      39                    45
Total transactions linked to investments         -2,450                -1,049

Total flows from financing activities               174                    75

Change in cash                                    4,255                 6,414

Net cash at the beginning of the year            19,749                10,748
Impact of conversion differentials                1,921                  -262
Net cash at the end of the year                  25,925                16,900

    © 2010 Gameloft - All rights reserved - Gameloft and Gameloft logo are
       registered trademarks of Gameloft S.A. - All rights reserved.
                      
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