Financial

IGG Inc. 2025 Interim Report

20 August 2025101 pages35,409 words

Summary

IGG Inc. maintained a stable financial trajectory during the first half of 2025, reporting interim revenue of HK$2.72 billion and a profit of HK$320 million. While flagship title *Lords Mobile* remains the primary revenue driver at 42% of total turnover (HK$1.15 billion), the period was defined by a strategic shift toward the APP Business. This segment grew 30% year-on-year to HK$530 million, now contributing nearly 20% of total revenue and reaching 73 million monthly active users. Geographically, the Group’s core strength remains in Asia and Europe, which together account for 77% of total revenue. The Group’s balance sheet remains robust, characterized by a strong liquidity position with HK$2.50 billion in cash and a reduced gearing ratio of 25.6%. Gross margins improved to 83%, supported by a significant decrease in channel costs, which offset rising promotion and advertising expenses. Despite a HK$19.7 million net loss across financial assets and joint ventures, the Group demonstrated a commitment to shareholder returns by declaring dividends and share buy-backs totaling approximately 61% of the period’s profit. This includes a combined interim and special dividend of HK13.9 cents per share, a marked increase over the previous year. Corporate governance and capital management activities included the execution of share buy-backs totaling 9.3 million shares and the granting of 6.87 million new awarded shares to support personnel retention. To navigate regulatory restrictions on foreign ownership in China’s online gaming sector, the Group continues to utilize structured contracts with PRC-based entities. While these entities contribute only 3.27% of total revenue, they ensure compliance with local regulations while allowing for full financial consolidation. Looking forward, the Group is optimizing its portfolio through the potential disposal of non-core assets, such as a historical complex in Italy, to focus on its primary mobile internet and gaming interests.

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IGG Inc. 2025 Interim Report

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