/customers/mobilegamesblog.com/mobilegamesblog.com/httpd.www/blog3/wp-content/plugins/wp-cache/wp-cache-phase1.php Financials: Glu Q1 2010 « MobileGamesBlog
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Financials: Glu Q1 2010

May 5th, 2010 by Arjan Olsder Posted in Analysis & Editorial | No Comments »

Glu (GLUU) has announced its financials. Though share prices suddenly started to rise on Monday, the numbers didn’t bring any of the fireworks many analysts expected and stock traders hoped for.

During the first quarter, Glu has seen its revenues fall 16.8% year-on-year. One of the reasons is that new titles are in production, but will not be launched until the fourth quarter of this year. CEO Niccolo de Masi also said that Glu will relay its focus to deliver less games which will have a much higher impact on the market. Glu will focus more at smartphone platforms as well as gaming communities to keep their consumers tied to the company.

Another reason why revenues went down is because of a strategy change at China Mobile. China Mobile is exchanging their mBlox platform which results in less downloads. At the same time, the operator is switching from a 15/85% rev-share to 50/50%.

In total, the company reported a net-loss of € 2.7 Million while it generated $17.3 million in revenues. This is $3.7 million less year-on-year. On the good side, it is the fourth quarter in a row where the company is generating cash. Glu also stated that the second quarter is traditionally a worse quarter compared to the first and the company seems to want to follow that tradition in 2010 as well. Niccolo is very positive about the future and so seem their investors as the share price was not in a big decline following the release.

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