Financial

IGG Inc. 2024 Interim Report

20 August 202495 pages50,846 words

Summary

IGG reported a significant financial turnaround in the first half of 2024, transitioning from a net loss in the previous year to a net profit of HK$330 million. Total revenue grew 9% year-on-year to HK$2.74 billion, driven by the continued performance of the flagship title Lords Mobile and the rapid expansion of newer strategy games, Doomsday: Last Survivors and Viking Rise. Additionally, a restructured mobile application business contributed a record HK$400 million. Geographically, Asia remains the primary market at 41% of revenue, while Europe emerged as the fastest-growing region, increasing its revenue share to 34%. Profitability was bolstered by aggressive cost-optimization strategies, including a 21% reduction in research and development costs through team restructuring and the integration of AI. Selling and distribution expenses also fell by 20%, contributing to an improved gross profit margin of 79%. The company maintained a robust liquidity position with HK$1.94 billion in cash and cash equivalents, enabling the Board to declare an interim dividend of HK8.5 cents per share and execute share buybacks totaling approximately 40% of the period’s net profit. The corporate structure continues to utilize Variable Interest Entities (VIEs) to operate within the Chinese regulatory landscape, though these entities account for less than 4% of total revenue. While the company’s private equity investment portfolio faced a fair value loss of HK$47 million, its core gaming and application operations remain the primary drivers of value. Management remains focused on long-term growth through a diversified product portfolio and a renewed share incentive framework designed to retain key talent following the termination of legacy option schemes.

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IGG Inc. 2024 Interim Report

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