Gameloft's net profits flat despite revenues growth

Mobile games publisher says strong Euro was partly to blame.

Mobile games publisher Gameloft has reported a net profit of €5.3 million (around $7.6m) for the first half of 2011, the same as it reported for the first half of 2010.

The company's revenues rose from €66.6 million to €76.8 million in the same period, so why were net profits flat? Gameloft points to exchange losses due to the strong Euro as one factor. The company's operating income rose from €5.8 million in the first half of 2010 to €8.9 million in the first half of 2011.

However, Gameloft also spent more on R&D (€37 million in 1H11), sales and marketing (€14.4m) and administrative costs (€7.1 million) in the first half of this year than in the equivalent period a year ago, as it sought to cement its position on smartphone app stores with a succession of new games.

Gameloft ended June with €26.1 million of cash and cash equivalents, while the company's equity rose 10% over the six months to €85.7 million.