Mobile games firm Gameloft has reported an increase in Q1 sales, and expects growth to continue on the back of a burgeoning mobile market.
The Paris, France-based company posted consolidated sales of €25.3 million in the first quarter, up 11 percent year-on-year.
The results were in line with company expectations. The firm expects sales to accelerate in the back half of 2008 with the release of games on the N-gage, iPhone, Wii and DS.
Apple recently unveiled the iPhone SDK, along with impressive 3D-enabled titles that showed off the device’s capabilities. Nokia also recently relaunched the N-gage as a platform usable across a line of Nokia handhelds.
The large majority of Gameloft’s sales (94 percent) come from mobile game sales, while the remaining 6 percent comes from the company’s console business, which releases games on Nintendo DS and Xbox Live Arcade.
For 2008, Gameloft expects to grow sales between 25 and 35 percent, with operating margin between 10 and 15 percent.
"This sharp improvement in the operating margin should be made possible by the stabilization of its mobile gaming employee headcount, in addition to the return on investment from the strategic expenses made in 2007 for new platforms such as Nokia’s N-Gage, Apple’s iPhone, Microsoft’s Xbox Live Arcade, etc.," the company said in a statement.