Gameloft Record First-Quarter Sales of EUR 22.7 Millions

  
    
  
  
    
      Gameloft generated consolidated sales of €22.7 
      M ($30.9 M) in the first quarter of 2007, up by 54% from the previous 
      year. On a comparable consolidation and exchange rate basis, growth 
      would have reached 66%.
    
    
      
        
          In €M
        
        
          2007 
        
        
          2006 
        
        
          Variation
        
      
      
        
          1st quarter
        
        
          22.7 
        
        
          14.8 
        
        
          +54%
        
      
    
    
      In the first quarter of 2007, Europe accounted for 44% of sales, North 
      America 39% and the rest of the world 17%.
    
    
      The sharp increase in the company’s sales is a 
      result of:
    
    
      
        the continued success of Gameloft’s back 
        catalogue, thanks in particular to the large number of games released 
        in 2006 (45 new games were released in 2006 compared to just over 20 
        in 2005);
      
      
        and the immediate success of the games launched in the first quarter 
        of 2007, such as Desperate Housewives, Lost, Real Football 
        2007, Tennis Open 2007 feat. Lleyton 
        Hewitt, etc.
      
    
    
      The company’s strong performance in the first 
      quarter of 2007 shows that it is perfectly positioned to take advantage 
      of the rapid growth in the mobile games market. The worldwide installed 
      base of Java phones reached 1.2 billion units in 20071 
      and is expected to double in the coming years. With its catalogue of 130 
      mobile games distributed by more than 170 operators around the world, 
      Gameloft is now beginning to reap the benefits of the massive 
      investments made in previous years.
    
    
      The better-than-expected growth in its activity over the first three 
      months of the year is prompting the company to fine-tune its 2007 sales 
      target. Gameloft is now forecasting annual sales of €95 
      to 100 M (versus its previous estimate of €90 
      to 100 M), i.e. annual growth of 39 to 46%. The company is also 
      confirming its operating margin target (excluding employee stock-based 
      compensation) in excess of 10% for 2007.
    
    
      Second quarter sales will be published July 26, 2007.
    
    
      1 Source: Ovum