Mobile games publisher Gameloft has reported its full financial results for the first half of 2012, revealing that its net profits fell 17% year-on-year to €4.6m ($5.8m) for the six-month period.

That’s based on revenues that were up 24% to €95.2m ($120m) in the first half of 2012, so why the fall in profits? Gameloft’s R&D costs rose 35% to €49.9m as it invested heavily in new games and technology.

Smartphone and tablet sales overtook Java game sales for Gameloft thanks to a 199% rise in sales for the former category in Q2 this year, while the company’s shift towards freemium games is shown by the fact that 60% of sales come from in-app purchases and ads.

Gameloft says it has 57m monthly active users of its games, and that it will release 20 more mobile games in the second half of 2012, targeting full-year revenues of €205m.