IGG Inc. achieved record H1 2018 revenue of US$388.5 million, a 42% year-over-year increase, with net profit rising 29% to US$98.4 million.
See it on page 40The company’s flagship title, Lords Mobile, remains the primary driver of growth within a global user base of 550 million registered users across more than 200 countries.
See it on page 7Asia and North America are the company's dominant markets, generating US$182.2 million and US$106.2 million in revenue respectively.
See it on page 54The company maintains a debt-free balance sheet with US$282.5 million in cash reserves, supporting an interim dividend of HK17.7 cents per share and the repurchase of over 25 million shares.
See it on page 12Structured contracts used to operate the PRC entity Fuzhou Tianmeng account for only 4.7% of total revenue, with management asserting that potential regulatory changes to these arrangements would not have a material financial impact.
See it on page 37The adoption of IFRS 9 resulted in a US$4.9 million downward adjustment to opening net assets, while the implementation of IFRS 15 had no material impact on the timing of revenue recognition.
See it on page 47IGG Inc. demonstrated robust financial growth and global expansion during the first half of 2018, driven primarily by the continued success of its flagship title, *Lords Mobile*. Revenue reached a record US$388.5 million, a 42% year-over-year increase, while net profit rose 29% to US$98.4 million. This performance was supported by a massive global user base of 550 million registered users across more than 200 countries. Asia and North America remain the dominant geographic markets, contributing US$182.2 million and US$106.2 million respectively. The company maintained a strong balance sheet with US$282.5 million in cash reserves and no bank borrowings, allowing for an interim dividend of HK17.7 cents per share and the repurchase of over 25 million shares.
Strategically, the Group focused on localized marketing and the exploration of emerging technologies like AR and LBS to diversify its portfolio. Operational management saw the continued combination of the Chairman and CEO roles to streamline strategic planning. The reporting period also marked the adoption of new accounting standards, specifically IFRS 9 and IFRS 15. While IFRS 9 led to a US$4.9 million downward adjustment to opening net assets due to new credit loss models and asset reclassifications, IFRS 15 did not materially alter the timing of revenue recognition for online gaming operations.
A significant portion of the Group’s regulatory focus involved monitoring the draft Chinese Foreign Investment Law. While the Group utilizes "Structured Contracts" to manage Fuzhou Tianmeng—a domestic PRC entity holding essential gaming licenses—these arrangements account for only 4.7% of total revenue. Management maintains that potential regulatory changes requiring the unwinding of these contracts would not have a material financial impact. Furthermore, the Group emphasized its commitment to international standards, including GDPR compliance and the implementation of rigorous internal controls to ensure long-term operational stability.
