Gameloft Reports Increased First Quarter Revenues

French-headquartered mobile game developer/publisher Gameloft, makers of mobile titles including Tom Clancy's Rainbow Six, War Of The Worlds, and New York Nights: Success In The City has released its first quarter 2006 results, and has reported significant revenue increases over the prior year. The company posted total sales of 14.8 million euros ($18.7 million), of which the company indicated mobile gaming accounted for 96 percent, a 49 percent increase over the same period in 2005. The remaining 4 percent of total sales were generated by internet revenues, which were up by a similar margin of 45 percent. However, the company did not specify its profit or loss for the quarter overall, as it is not required to do so. Downloadable games continued to play an important part in the company's financial security. Game downloads generated 93 percent of first quarter sales, up 116 percent over the same period in 2005. 75 percent of 2005 revenues resulted from game downloads, up 120 percent from 2004. The company stated that the European market accounted for the bulk of first quarter sales, amounting to 46 percent of total sales. North America represented 38 percent of the company's revenue, while the rest of the world figured into 16 percent of Gameloft's first quarter earnings. By comparison, in 2005, Europe, North America and the rest of the world accounted for 57 percent, 29 percent, and 13 percent respectively for Gameloft's annual sales. Going forward, the company announced that a sharp increase over the first quarter has put the company ahead of its annual growth objective of 40 percent, thanks in part to a series of investments in its production and marketing capacity, positioning Gameloft to take advantage of rapid growth in the mobile games market driven by the popularity of Java and Brew phones.