Growth of 16% at Constant-Exchange-Rate Basis
Full-Year Smartphone Sales Up 36%
Gameloft achieved record revenues of €62.3 million during the fourth quarter of 2013, up by 8% from the previous year. On a constant-exchange-rate basis, the fourth-quarter growth was 14%. EMEA represented 33% of fourth-quarter sales; North America, 27%; LATAM, 19%; and APAC, 20%.
Sales (EUR million) 2013 2012 Variation
1st Quarter 54.2 44.8 +21%
2nd Quarter 55.2 50.4 +10%
3rd Quarter 61.7 55.4 +11%
4th Quarter 62.3 57.7 +8%
12-Month Total 233.3 208.3 +12%
In 2013, Gameloft’s consolidated sales reached €233.3 million, up by 12% year on year. EMEA represented 32% of 2013 sales;North America, 28%; LATAM, 21%; and APAC, 19%. Full-year sales are slightly below the guidance of €235M – €240M due to the delayed releases of several games and to the ongoing weakness of emerging market and US currencies against the Euro. On a constant-exchange-rate basis, the full-year growth stood at 16% in 2013. On the other hand, the weakness of emerging market and US currencies benefits the company’s costs almost proportionally, and therefore the initial guidance to increase profitability and net cash in 2013 remains unchanged.
Sales continue to be driven by the worldwide success of Gameloft games on smartphones and tablets. Gameloft’s 2013 sales on smartphones and tablets grew by 36% year on year. They represented 66% of total sales in 2013 compared with 54% in 2012.
Gameloft’s growth is also driven by the success of the free-to-play business model: sales of virtual goods and advertising currently account for more than 80% of the company’s smartphone revenues. This free-to-play model enables Gameloft to reach very large audiences. In the last 30 days, no less than 160 million people have played a Gameloft game on their smartphone or tablet. This model also increases the longevity of the company’s products. Games launched prior to 2013 accounted for more than 75% of the company’s revenues in 2013.
The continuing strength of the smartphone and tablet market and the solid line-up of new high-quality games to be released in 2014 by Gameloft should sustain the company’s growth in the coming quarters. Therefore, the company anticipates another year of growth in sales, results and net cash in 2014.
The Group’s 2013 annual results will be published on March 19, 2014, after the market closes.