IGG Annual Results 2015

Key insights

7 takeaways

01
IGG generated US$202.5 million in revenue in 2015, a 1% year-over-year decline that would have been a 4% increase if not for new VAT legislation in the EU, Japan, and South Korea.See it on page 11
02
The company successfully completed its pivot to mobile gaming, with 94% of total revenue now derived from mobile titles.See it on page 12
03
Adjusted net income reached US$44.2 million, impacted by increased R&D investment and administrative costs associated with listing transfers.See it on page 15
04
IGG maintains a global user base of approximately 300 million accounts, with 18 million monthly active users.See it on page 4
05
The company holds a strong liquidity position with US$186 million in cash and cash equivalents, supporting both interim and special dividend payments.See it on page 17
06
Core revenue performance was driven by the title Castle Clash, with a development pipeline of 15 to 20 new titles planned for 2016.See it on page 13
07
Future growth strategy centers on localized R&D to target emerging markets, specifically Russia and the Middle East.See it on page 29

Summary

The 2015 annual results for IGG INC reflect a period of strategic transition and consolidation as the company solidified its position as a global mobile gaming developer and operator. With 94% of total revenue derived from mobile titles, the company successfully pivoted away from browser and client-based games. The organization maintained a robust global footprint, supporting approximately 300 million user accounts across more than 200 countries, with a monthly active user base of roughly 18 million.

Financial performance in 2015 saw revenue reach US$202.5 million, a slight decline of 1% compared to the previous year, largely attributed to new value-added tax (VAT) legislation in the European Union, Japan, and South Korea. Excluding these regulatory impacts, year-on-year revenue growth would have exceeded 4%. Profitability metrics were impacted by increased investment in global research and development, administrative expenses related to listing transfers, and strategic due diligence, resulting in an adjusted net income of US$44.2 million. Despite these pressures, the company maintained a strong liquidity position with US$186 million in cash and cash equivalents, facilitating the declaration of both interim and special dividends.

Operational success was driven by the performance of core titles, particularly Castle Clash, which remained a primary revenue contributor. The company continued to emphasize mid-core strategy games, supported by a global R&D network spanning multiple regional offices. Looking forward, the company’s strategy focuses on localized R&D to penetrate high-growth emerging markets, such as Russia and the Middle East, while maintaining a pipeline of 15 to 20 new titles for 2016. The company remains committed to a globalized operational model, leveraging its Singapore-based headquarters to optimize tax efficiency and support its ongoing expansion in the competitive mobile gaming landscape.