IGG Annual Results 2017

Key insights

6 takeaways

01
IGG Inc. achieved record financial results in 2017, with annual revenue rising 89% to US$607.3 million and net profit increasing 117% to US$155.1 million.See it on page 8
02
The flagship title Lords Mobile was the primary growth driver, generating US$437.8 million in revenue—a 252% year-over-year increase—and becoming the world's top-ranked war strategy game.See it on page 10
03
Legacy title Castle Clash remained a significant revenue pillar, contributing 20% of the company's total annual income.See it on page 10
04
The company maintained strong liquidity with US$221.9 million in cash and cash equivalents, enabling a shareholder return policy that distributed 79% of net profit via dividends and buybacks.See it on page 16
05
Operational efficiency improved as the company reduced its R&D-to-revenue ratio while simultaneously expanding its decentralized development footprint across more than 10 countries.See it on page 5
06
Future growth strategy focuses on further localization in North America, Europe, and the Middle East, alongside the development of new titles and the refinement of existing intellectual properties.See it on page 19

Summary

The 2017 annual results for IGG Inc. demonstrate a period of significant financial growth and global expansion for the mobile game developer and publisher. The primary thesis of the report highlights the company’s successful transition into a major global player, driven largely by the exceptional performance of its flagship title, Lords Mobile. By leveraging a decentralized operational model with research and development teams across more than 10 countries, the company has effectively scaled its reach to users in over 200 countries.

Financial performance in 2017 reached record highs, with annual revenue climbing to US$607.3 million, an 89% increase year-over-year. Net profit saw even more substantial growth, rising 117% to US$155.1 million. This surge was primarily attributed to Lords Mobile, which generated US$437.8 million in revenue—a 252% increase from the previous year—and maintained its position as the number one war strategy game globally since the third quarter of 2017. While Castle Clash remained a steady contributor, accounting for 20% of total revenue, the company’s overall profitability was bolstered by a disciplined approach to operational costs, including a reduction in the R&D-to-revenue ratio despite increased investment in talent.

The company maintains a strong liquidity position, ending 2017 with US$221.9 million in cash and cash equivalents. This financial stability supported a robust shareholder return policy, with total dividends and share buybacks amounting to 79% of the year's net profit. Looking forward, the company intends to sustain this momentum by refining its existing intellectual properties, launching new titles, and further localizing operations in key markets such as North America, Europe, and the Middle East to capitalize on the projected growth of the global mobile gaming sector.