in Mobile Gaming

#Glu Mobile: CEO bullish amid iPhone 5 release

Mobile gaming company Glu Mobile expects a big boost to its sales from the success of Apple Inc’s iPhone 5, which analysts forecast will sell up to 10 million units this quarter.

The maker of mobile games such as “Big Time Gangsta” expects about two-thirds of its revenue this year from Apple’s iOS mobile platform, said Chief Executive Niccolo de Masi.  Glu, the only real listed peer to our top-pick G5 Entertainment, forecast revenue of between $94.4 million and $96.4 million for 2012 last mont.

The popularity of the company’s games on the Apple platform fuelled rapid growth for Glu last year, bringing in nearly a third of its total revenue of $66.2 million.  “In the fourth quarter of 2011, we came in 10 to 15 percent ahead of guidance because of the iPhone 4S release,” said Masi, who took the top job in Glu in 2010 and steered its focus from feature phones to smartphones that use Apple and Google Inc’s platforms.  He expects the iPhone 5 to be have at least the same impact in the fourth quarter of this year and the first quarter of the next.

The new iPhone, launched on Wednesday, has a bigger screen and supports 4G wireless technology.  San Francisco-based Glu, whose games can also be played on tablets, plans to add 8 to 10 games in the rest of 2012 to the 12 it launched in the first half of the year. All of those are optimized for iPhone 5, Masi said.  “The main advantage Apple has right now is that they are doing great business in China,” the CEO said. China will overtake the United States as the world’s biggest smartphone market this year, according to research firm IDC.

“We’re a mobile-only company. We don’t make games for Facebook. We only cater to Apple, Google, Amazon and Microsoft platforms, and sell through their stores,” Masi said.  Glu expects revenue from Google’s Android platform to match those from iOS as more handsets start operating on Android, Masi said.  The company, which also licenses games from video game publishers such as Activision Blizzard Inc, got about 11 percent of its 2011 revenue from Android users.

Good times to be in mobile gaming – good times to be invested in those that are in mobile gaming!

Nordic Investor

PS: If you want exposure to the mobile gaming market, check out our top-pick G5 Entertainment

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