Gameloft posts record sales

R&D expenditures result in lower profits
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Gameloft has posted its financial results for the first half of fiscal year 2012, showing an increase in sales of 24 percent.

The mobile gaming company behind games like Ice Age, NOVA, and Asphalt has had a good year, but increased costs are begining to tell.

Despite record sales, profits were down to $5.8 million compared with last year's $6.6 million.

Gameloft blames this on R&D spending, which was up to $62.5 million compared with last year's $46 million.

This takes out a significant chunk from the company's $119.6 million in revenues for the first part of the year.

In terms of how revenue is earned, things are looking good for Gameloft's mobile strategy.

Game sales on smartphone and tablet devices rose to over fifty percent of total for the first time, and in-app purchases and ads account for sixty percent of total revenue.

With 20 new titles planned for the year, Gameloft has decided to raise expectations fo full year sales to $257.6 million.