Superscape becoming Supercharged?

HOT, my earlier post on Gameloft may be useful

The Bounty Hunter - 22 Nov'06 - 14:16 - 11167 of 11524 edit


Gameloft review.

The Gameloft website provides quarterly reports of revenues by region. As sps is now largely focused on the Americas, this may provide a useful benchmark to the performance of sps and also what we may expect going forward.

1. Total revenues - Gameloft

20 jan 2005 guidance for 2005 was for growth of 50%+
4 march 2005 guidance for 2005 was for growth of 70%+

Actual revenue growth for 2005 was over 100%

Early guidance in 2006 was for 2006 revenue growth of 40%+
Current forecast is for over 45% growth.

This would indicate that mobile gaming revenues are still growing strongly, but growth rates are moderating in 2006.

2. Regional analysis - Gameloft

Gameloft's European revenues have shown marginal growth in 2006 over 2005 (4% on a YTD basis), whereas the revenues from North America have shown substantial growth and I estimate overall growth of over 100%. This vindicates the sps decision to concentrate on Americas, as there appears to be specific issues with the development of the mobile gaming business in Europe.

3. 2006 Quarterly North Americas revenues

Gameloft revenue growth rates were 17%, 18% and 7% in the first three quarters.
Total Q4 revenues are expecetd to increase by 32%. North America revenues are estimated to grow at 36% in H2, compared to H1. If sps performs at the same rate, then sps revenues for the current year should be close to £9m.
Based on the Gameloft Q3 performance, the current growth for sps is likely to be in the 7-15% range.

4. If US growth rate for 2006 for Gameloft is over 100%, then 2007 growth in excess of 40% would appear to be reasonable.

5. Non-Europe & North America revenues of Gameloft have doubled on a year to date basis. Hopefully when sps reach profitablity it will address its marketing worldwide to not miss out on the opportunities available elsewhere.

There is obviously massive scope for further penetration of this market. The right games on the right handsets will sell. It should be an interesting future. I think that sps has to perform or it will be taken out. One could easily imagine a fit with Gameloft - say an extra £12m of revenue, eliminate the corpoarte cost of sps and there will be a good deal.