Paris-based mobile games publisher Gameloft on Thursday reported a first-half earnings loss and a rosy 2008 outlook that cites distribution across Apple’s Apps store as a future earnings engine.
Gameloft on Thursday report a net loss of $1.2 million on sales of $74 million for its first half of 2008, compared with net income of $50,000 on sales of $66 million a year ago. The maker of mobile games said growth from distribution across iPhones, other high-end phones, and gaming consoles is expected to boost its second-half 2008 results.
“These strategic investments pave the way for the future growth of the company, especially in the ‘rich games’ segment that was launched in 2008 on high-end phones (iPhone, N-Gage, Instinct, etc.) and on downloading consoles (Wii, Xbox 360 and PS3), which is expected to fuel growth in the second half of 2008 and in following years,” Gameloft said in its earnings statement.
The mobile games publisher has also said previously that it is positioned to benefit from the launch of Google’s Android.
Gameloft ambitions for next-generation mobile gaming platforms, and expectations for future revenue, underscore a change taking place across smart phones and mobile commerce.
Earlier this month, Apple announced its Apps store had delivered 60 million downloads that did sales of $30 million in its first month.
"This thing's going to crest a half a billion soon," Apple CEO Steve Jobs told The Wall Street Journal after the announcement. "Who knows, maybe it will be a $1 billion marketplace at some point in time."
Gameloft has seven titles on Apple’s Apps store: Brain Challenge, Chess Classics, Platinum Solitaire, Bubble Bash, Platinum Sudoku, Diamond Twister, and Backgammon Classic. Game prices range from $1.99 to $9.99. The company expects to have a total of 15 games released for Apple's Apps store by year’s end.
Mobile games made up 94 percent of Gameloft’s first-half revenue; console games distribution across Nintendo DS, Xbox Live Arcade, and Nintendo WiiWare made up the other 6 percent.
Gameloft said in its earnings report that it has continued to hold down between one and four games in the top ten slots of Apple’s Apps store for games sold in the U.S., Canada, the UK, France, Germany, Spain, Italy, and Japan since the July 8 launch of the store.
The company's 3,300 game developers crank out about 80 games per year, offering over 250 games that can run across 1,200 mobile phone models.
Formed in 1999, Gameloft gained entry into France’s SBF 250 (Société des Bourses Françaises 250 Index) in 2003. In July 2007, Ubisoft sold its nearly 19 percent stake in Gameloft for $120 million to Calyon, Crédit Agricole Group's corporate and investment bank.