IGG Inc.’s interim report for the first half of 2016 outlines the company’s financial performance and strategic trajectory as a global mobile gaming developer and operator. The primary objective of the report is to demonstrate the company’s successful transition to a mobile-first business model, highlighted by the rapid growth of its new title, Lords Mobile, and the sustained performance of its established portfolio. The company maintains a global operational footprint, with regional offices in 10 countries and a user base exceeding 340 million accounts across more than 200 countries.
Financial results for the first half of 2016 show strong growth, with revenue reaching $126 million, a 21.4% increase compared to the first half of 2015. Gross profit rose to $88.6 million, maintaining a healthy margin of 70%. While adjusted net income reached $27.2 million, the company noted that growth in this area was tempered by increased advertising and promotional expenditures associated with the launch of Lords Mobile. The company’s revenue is geographically diversified, with North America, Europe, and Asia serving as its primary markets, which helps mitigate risks associated with regional economic or currency fluctuations.
The company’s methodology relies on internal financial tracking, user engagement metrics, and industry data sourced from external market research firms like Newzoo. Key operational findings indicate that mobile games account for 97% of total revenue. Lords Mobile has emerged as a significant growth engine, contributing 14% of total revenue by mid-2016, while the legacy title Castle Clash remains a cornerstone, accounting for 56% of revenue. Looking forward, the company plans to expand its portfolio with approximately 10 new titles by the end of 2016, including strategy, tile-matching, and casino games, while navigating new regulatory requirements for mobile game publishing in China.
