Is there life for Glu Mobile after Kim Kardashian?

hello and welcome to biz daily I'm John Jordan so the big news working at today is glu mobile's financials so in the financial kind of a reporting period for public companies Glu Mobile has announced its financial figures 4 2015 so the function figs actually announced were for the October to December quarter which is its q4 so basically we get the entire years worth of financials for glue so I look at my cheat sheet good for getting it right so the entire year glue had revenues of 250 million dollars that's pretty much the same as or set up about 1% so nothing kind of staggering there which is kind of against the start the bad news for glue really 2014 there's a very good view for it particularly because the Kim Kardashian Hollywood game kind of came out of

nowhere or did come out exactly come out of nowhere and proved very successful and some other games it was working on did pretty well at Deer Hunter franchise did well so 2014 was a very good year for glue 2015 it's not being a worship but it's not been it's not kind of continued it needs growth current pattern so we're going to dig into kind of some of the games of work for it's on the games I haven't and looked at smooth with us reasons why so so Kim Kardashian Hollywood is still glues biggest game home so 4 2015 it was about thirty percent of revenue just on that one game it shows how big ears I mean that games in decline now like a lot of these kind of free-to-play games it's you know it peaks and then people come stop playing it everyone turns in the end they say but it's still very profitable when it's still kind of so the decline is manageable you know you can eat who can tell how that games can operate and gonna make still a lot of money for the glue and Kim Kardashian interesting the glue second biggest game is again called

racing rivals which it is ethic from the comedy sci games that glue required that's a pretty hardcore racing game kind of like a CSR racing game bit more hard I was just and that's a 17-percent I between those two games it's almost fifty percent of lose revenue is just those two just two games and then it has lots of other franchisees so has it frontline commando deer hunters still a pretty pretty big for blue and it has oh yes as it has a portfolio effect but I'm because 2015 the big two big games it didn't happen for glue it's kind of worth looking at what happened there so the first one was he had the James Bond licensor glue has been looking at obvious a lot of celebrity licenses has done in the past has a lot film licensing stuffs and stuff but they're terminator game and as a few other things kind of signed up but it had the James Bond I've judged one license so offices gentle on film Spectre came out in November and we didn't do a game

specifically based on that because it's hard to do a game just based on a fit but a single film because obviously that game there that film he finishes quite quickly enough that you know the dvds and stuff after you know six months no one's really interested in that film is up clogged huh so it kind of took a interesting approach that he called it a Jacob the game was called James Bond world a world of espionage it was a bit more of a I guess kind of a game of wharf type of pro so very menu-driven very young urban RPG or something was a lot strategy game but kind of an opera by your building us a kind of a squad of of spies and kind of go in them up and it was um a lot of people didn't like it because it wasn't not really any game played but very stack driven very kind of a mess again driven actually quite liked it um you know roughly it was wasn't the the most exciting game because there's many gay men even games come on but I'm kind of interesting but just didn't work at all what I mean absolutely glue didn't really I think they saw the figures weren't coming out even as they want it didn't we market it very much didn't rig any organic traffic

didn't really get pushed by the app stores and just basically didn't do anything until download wasn't doing anything it's only grossing my wife's didn't do anything at all so I think blue thought that game protect the potential at least it to be quite big although not a mass-market appeal so that was kind of the first kind of problem for glue second one which was a again came out of nowhere little bit we there was a big announcement they there were Katy Perry so blue on its social side now has dr. Kim Kardashian and a few other the Kardashian kind of cruise make games with announced it had katy perry also has britney spears announce public titles it now has a Taylor Swift also as a Gordon Ramsay this the chef and Jason Statham the kind of hard man has done kind of either has games announced with them or projects on going with them so lot of celebrities but the Katy Perry game they basically he's very pop it was called came up

quite suddenly in December not a lot of fanfare just kind of like pit on the App Store and it was obviously based on the Kim Kardashian game but had some odd kind of twists to it there may be more complex come nice ideas but just didn't quite gel healthy because katy perry is a musician so they're kind of the music side of it and that kind of was rather than a problem the fashion side you have this kind of quirky thing we could put on some glasses and look at and get kind of katy perry vision and you can see the game world and it's slightly more than a surreal simply kind of way and see like them you know the left shark and all this kind of her ways so it was kind of interesting but didn't I don't think quite jell well and that again it means it's almost surprising most wise and gentle ball game ft katy perry pop just didn't find any traction at all I'm said to two big games that I think blue thought we've added you know tens of millions of dollars to its to this kind of facial year maybe a very well because he released right at the end but to go into thoughts gonna be successful just

didn't and they weren't just not a little bit successful they were basically didn't do anything at all um and it's it's comes back to a kind of harder issue for glucose crew has been doing free play games for a long time it's run the first runs the first big fluid companies to basically stop doing paid games and move to free-to-play and did so kind of fairly successfully you know had a lot of experience in that area so you very free play games a lot of free to play again just released as well over the years you would think they would have to have the operational experience to know what's going on this games and actually you know earnings called the CEO kind of surprisingly said the basically they tell you messed up on those two games they knew in retrospect the numbers on them the metrics weren't good enough and they put them out there anyway bit of waste of time and kind of the effector that some people go signing like 16 dunces and they put points a new kind of sea level like a CTO in a creative director over all the studios it has lots of studios around the world like Russia and Brazil and China and so it's quite hard to coordinate I think some of those teams I

hope we should make maybe one of the issues is had with it with the quantity of these of these two games but I think it's still a little bit surprised when most people thought the glue was actually quite good operating free-to-play games and now it appears that certainly on the level of these two games has been absolutely not very good at all and not had any kind of much internal rigor and now this game to basically it's kind of suggested those two games it kind of dead can't do anything with them they still live on the App Store perm it's not really sure but for the for Katy Perry and James Bond where it does now with those licenses which is still operational and so difficult times again for glue it's gone four different times before I'm done yet come out of them it made a loss for the year as well which is never good for coming to make a loss has got some money in the bank it's got like hundred eighteen million dollars in the bank it's got a big investor in the shape of ten cents i'm going to go bust any time soon i guess the more long-term issue for glue is its share price has come down quite a bit at one point is was that over we're getting on for six dollars a share now it's down to about

kind of two dollars a share so it's market cap so the value of the company on that in terms of shares is about you know 270 million dollars an hour which is not far off what its annual home revenue is which is never a good sign and it put the cash in there as well that's suggesting that I'm investors are not very happy with the direction the booze taking so I think 2016 a big year for blue it's always I've always thought we'd be an acquisition target for someone that's kind of difficult now tenzin has a big chunk of it but it's not to say that the tenting can't buy what someone else could come in because I'm still have some good brands and I think there's a lot of kind of good value with blue we just kind of have to see now particularly he's got these celebrity brands I think you know could you do a good Britney Spears game absolutely if you could be quite lateral may use a license Taylor part Taylor pox Taylor Swift again obviously great license to have can you mess up a game with Taylor Swift Nick course um but I think hopefully blue will take the

learnings as they say from from its hard 2015 and come up with two thousand a bit of 2016 anyway that was the news for today don't forget to subscribe to our YouTube channel then you won't miss any of the news that's coming out of the mobile games industry there's lots of news coming out of the mobile games industry hope to see you soon