Financial · May 14, 2015

First Quarterly Report 2015

Published by IGG

Summary

IGG Inc. demonstrated resilient year-over-year growth during the first quarter of 2015, characterized by a 21.5% revenue increase to US$53.6 million and a 2.9% rise in profit to US$14.0 million. This performance was underpinned by a mobile-first strategy, with mobile titles accounting for 92.9% of total revenue, largely driven by the continued success of Castle Clash. Despite this annual progress, the company faced an 11.4% sequential decline in revenue compared to the final quarter of 2014, a downturn attributed to a sparse new-game release schedule, unfavorable currency fluctuations, and the implementation of new European Union value-added tax regulations. The company’s operational focus remained on global expansion and infrastructure development, with operations spanning nine countries and 94% of revenue originating from North America, Europe, and Asia. To sustain this momentum, the organization reached a total of 240 million player accounts and initiated investments in advertising platforms and external game developers like Nerd Kingdom. While gross profit reached US$36.9 million, the gross profit margin contracted to 68.8%, reflecting the rising channel costs inherent in mobile game distribution. Corporate governance and equity management remained central to the period’s activities. Eight controlling shareholders maintained a formal agreement to act in concert on material operational matters, while the company actively managed its share option and award schemes to incentivize directors and personnel. As of March 31, 2015, the firm continued to align with standard corporate governance codes, though it maintained a consolidated leadership structure with Mr. Zongjian Cai serving as both chairman and CEO. Looking ahead, the company aims to leverage a robust pipeline of approximately 30 new titles to drive future growth and offset the increased operational costs encountered during the quarter.

From the report

FIRST QUARTERLY REPORT COKER DESTING SFLORDS 0 BINGO LO ECASTLE CLASH IGG IGOT GAMES

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. H o o f h n o g t T h w h t i K s h s i p o s o e r u t n e e r h r n R e g v p e p o p e u o o E r t o l b r e s x t r a e m e s , c t r s , h i m t G i s o s f a i l o o f o n a e n f r v k g a g g e e d t w i e f v h r i r s n n n i h e o n i g o i a i n m c g r n h g o r k d i e o n n r t t p r h h f o C d r o i e e w e n e l r e s c m D L l a r e e e i e r i s n a d p r i l t n e i t t g t i a a i n c i g o e v n t t g e n i o c o L a , e r o i n n m w s a f u d n c i a i p S t t o d s b h e e o l e d l c t n t e r o l u h i e c e a t r e t g h i i f n i t t r , v a e s i d e e e r t d a w h s l a T y c e r h o h t c e a o e n o u i n n n l r d e S f t t a o o h h t c o i o r e e n y o m r c d t G C k o a h a i v n r o r t e E i o i y d m r c o x w o u c p n m p h m a t a a h c a l a r l p n o t y t n E t l y n o e g e a n .

a t r e t g h i i f n i t t r , v a e s i d e e e r t d a w h s l a T y c e r h o h t c e a o e n o u i n n n l r d e S f t t a o o h h t c o i o r e e n y o m r c d t G C k o a h a i v n r o r t e E i o i y d m r c o x w o u c p n m p h m a t a a h c a l a r l p n o t y t n E t l y n o e g e a n . t t f e r c t a e s T e c t i n o h h n e r t e p h f e e e p s r e d t H s c i D s o f o o e i a i u n r n n m n e l M t l g t d c e i h r s t a n e s K i o e s r s t i k x o r o s p s r p e n n o e , o t r g p n f e h o o o s s t a f L i s f h r b v i l t w m i y T i i s n l i h i h s i d t r g t e y e i e i a c s , p d m h c c S i o c l n t a a t w o u r c a i t d m c r l . o k u a e k e u d t e a a E l e d n n l x s l a o c y m n r p h e l d r a a i a e a a r n k s c s b t e p g i o o i c l o e n m i u a t n a y l n o a p s b y f r w l i l e b s e H s t h i g l t e i o e a a t i v y n t n t i n s e e g q o f m n o u a e K l r i e i v l r n o n e i t m e n h r t c s g e a o , f h o t m e c L e c r o r i o r p m e i a n n a l i i n n i f l a t t i e y e n r r o n m e d c l r s o t e s p f s t t o e s w h h r c i a i s t t t t s h h , r e e a t p n o o d r t m i s l e a d i n g .

GOT GAMES FIRST QUARTERLYREPORT 4. INCOME TAX 1 HIGHLIGHTS For the three months ended 31 March 2015 2014 operates. US’000 HK’000² US’000 HK’000² (Unaudited) (Unaudited) Revenue 53,585 415,578 44,055 341,669 Profit for the Period 13,990 108,499 13,647 105,839 Profit for the Period attributable to owners of the parent 13,949 108,181 13,647 105,839 Adjusted net income¹ 14,797 114,758 13,821 107,189 – The Group’s revenue for the Period was approximately US$53.6 million, representing an increase of approximately 21.5% over the revenue of approximately US$44.1 million for the corresponding period in 2014 and a decrease of approximately 11.4% over US$60.5 million for the three months ended 31 December 2014. – The Group’s profit for the Period was approximately US$14.0 million, representing an increase of approximately 2.9% over US$13.6 million for the corresponding period in 2014 and a decrease of approximately 7.3% over US$15.1 million for the three months ended 31 December 2014. – The Group’s profit attributable to owners of the parent for the Period was approximately US13.9 million, representing an increase of approximately 2.2% over US13.6 million for the corresponding period in 2014 and a decrease of approximately 9.2% over US$15.3 million for the three months ended 31 December 2014. – The Group’s adjusted net income for the Period was approximately US$14.8 million, representing an increase of 7.2% over US$13.8 million for the corresponding period in 2014 and a decrease of approximately 6.9% over US$15.9 million for the three months ended 31 December 2014.

d 31 December 2014. – The Group’s adjusted net income for the Period was approximately US$14.8 million, representing an increase of 7.2% over US$13.8 million for the corresponding period in 2014 and a decrease of approximately 6.9% over US$15.9 million for the three months ended 31 December 2014. – The Directors of the Company resolved not to declare any dividend for the three months ended 31 March 2015 (three months ended 31 March 2014: nil). 1 2 A c d o j u n A s s m p t o e u c l o i d r o d u p n a n n o t v t e e s e s e d t r d t i e o s e n t d n n a c l t o o i y n e . m m m t o S i e n e u H n a c r t o h t e e n p o d c g r f o e i p n K n s r e v o o U e n n f . r i t g S t s e . i o o d d d r n o o p s l l o l l a r l a s s o r h s r s f s a i i a t n l h l t d a e n s i v x c u o e c a c t l t h u b i b n e d r e g e a i n n t t c e g h o c s e n o s o s h n G r t v a r r a e u o r n e r e u t y - d e p b o d ’ a s a t s i s h p n e e r r t d o r o e f p e c i H t x r o a e c o m b s h n e i a l g p n i n t e t y K g a n o a e t s i n n o a r d g a n t i t s o o d e n p s o t h e . l o l a a r n I a t t r s t s i a i o u s a m n c t c h a o a o l u n d n p n a s e e t t i x r d e f i c n e o h o r r a r U e m n a d . a g S n n . e a y c d r o e u a o t s t f h l e e l o a e f r r r o u s t f d l h w a H e s t u K e e f p r i $ . n e p 7 a l . o n e 7 r c m 5 i c a 5 e o l 5 n u p = t l e d U r t i S o o h $ d a t 1 s v h . e 0 p e 0 r b e c , e s o f e e o n n n r d t i e e o l l d n r u .

r r a r U e m n a d . a g S n n . e a y c d r o e u a o t s t f h l e e l o a e f r r r o u s t f d l h w a H e s t u K e e f p r i $ . n e p 7 a l . o n e 7 r c m 5 i c a 5 e o l 5 n u p = t l e d U r t i S o o h $ d a t 1 s v h . e 0 p e 0 r b e c , e s o f e e o n n n r d t i e e o l l d n r u . s s c e t o r d a u t l i d o n b e

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Words: 24,414
Type: Financial

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