Financial

IGG Inc. Q1 2015 Quarterly Report

1 March 201538 pages21,859 words

Summary

IGG Inc. achieved a revenue of $53.6 million during the first quarter of 2015, marking a 21.5% increase over the same period in 2014. This growth was fueled by the continued global dominance of mobile titles, specifically Castle Clash and the Clash of Lords series, which together drove mobile gaming to represent 92.9% of total turnover. Despite this year-over-year progress, revenue declined 11.4% from the previous quarter due to external headwinds, including new European Union VAT regulations and the depreciation of the Russian ruble. Net profit for the period reached $14.0 million, with an adjusted net income of $14.8 million after accounting for share-based compensation. The company’s strategic focus remained on global expansion and product development. Research and development costs surged nearly 70% to $5.6 million as the Group expanded its technical teams and prepared a pipeline of approximately 30 new titles for release later in the year. To support this international trajectory, new regional offices were established in Japan and South Korea, and the Singapore headquarters was relocated. Furthermore, the Group initiated a proposed transfer of its listing from the Growth Enterprise Market to the Main Board of the Hong Kong Stock Exchange, reflecting its maturing corporate profile. Financial stability was evidenced by total equity rising to $202.1 million by March 31, 2015. While the Board of Directors opted not to declare a dividend for the quarter, it remained active in corporate governance and incentive management, overseeing significant activity in share option and award schemes. Ownership remains concentrated among key executives and major institutional investors like IDG-Accel and Temasek Holdings. Despite ongoing legal proceedings with uncertain outcomes, the Group maintained a robust balance sheet and a backend-loaded release schedule intended to sustain momentum throughout the fiscal year.

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IGG Inc. Q1 2015 Quarterly Report

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