Mobile Game Industry Revenue Nears $540 Million In 2009

[prweb] According to a new study from SNL Kagan, “Economics of Mobile Games,” mobile game publishers grossed nearly $540 million in top-line revenue in the U.S. in 2009, up at a 12% CAGR from $382 million in 2006.
In “Economics of Mobile Games,” SNL Kagan ranks the leading 21 mobile game publishers by U.S. revenue from third-quarter 2005 to fourth-quarter 2009. At the top of the list is EA Mobile, which SNL Kagan estimates will bring in record revenues exceeding $115 million in 2009. Gameloft, Glu and Namco Bandai round out the top four.

While profitability varies widely by publisher, the overall margin for the industry is on the rise. SNL Kagan estimates that the U.S. mobile game industry’s EBITDA margin has grown from negative 19% in third-quarter 2005 to an estimated 17% in fourth-quarter 2009. The study found that publishers with libraries of classic game hits or those that develop popular games using their own intellectual property have the most financial success.

The report also examines how the iPhone and Android are quickly altering the marketplace. As SNL Kagan analyst John Fletcher notes: “The mobile game landscape has changed dramatically in the past two years with App Stores and smartphones representing a new and fast-growing frontier. We expect to see strong sales from publishers who have evolved with the changing business model, while those focusing on carrier deals will likely have more subdued growth.”

Mobile Game Industry Revenue Nears $540 Million In 2009; Up More Than 9 Percent From 2008, According To SNL Kagan