Glu Mobile sees fewer successful games in Q3 2012

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I have a pretty vocal opinion regarding my feelings about Glu Mobile. Basically, I feel the company makes some of the finest mobile games available, but ruins them by forcing high-priced in-game purchases on players. Since Glu Mobile typically skips $0.99 transactions and goes for higher dollar amounts, I was curious as to how well the company is doing financially. Let’s take a look at Glu’s third quarter financials.

In the third quarter of 2012, Glu Mobile released 11 games. Of those 11 games, only two of them were considered to be successful. Those games were Blood & Glory Legend and Eternity Warriors 2. Eternity Warriors 2 managed to make Glu Mobile $2 million in the quarter. Blood & Glory Legend brought in $800,000.

Glu’s other new releases such as Death Dome, didn’t do as well. As such, Glu has decided to delay five games that were going to be released before the end of 2012. There will only be two more new releases this year in the form of a sequel to Contract Killer Zombies and Dragon Slayer.

Glu made $1.9 million through in-game purchases in the third quarter, which was 25% lower than the previous quarter. The average customer spent $5.07 within Glu’s games.

In addition to Glu’s newest games not generating as much ARPDAU (average revenue per daily active user), the company also took a hit on the advertising side. Apple no longer allows app monetization services such as TapJoy to send users to HTML5 sites. This ended up hurting Glu Mobile to the point where it expects revenues for its fourth quarter to be “substantially lowered” in this regard to the tune of $1.75 million.

All in all, it wasn’t the best quarter for Glu, but the company still appears to be in decent shape. Glu does not expect to take on any debt in 2013. It believes the money it has right now ($24.1 million) will be enough to move the company along.

Source [Glu Mobile]

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