The 2018 annual report for IGG Inc. details a period of robust financial expansion and operational consolidation for the global mobile game developer. The company achieved significant growth, with annual revenue rising 23% to US$748.8 million and net profit increasing 22% to US$189.3 million. This performance was anchored by the sustained success of the flagship title Lords Mobile, which accounted for over 80% of total revenue. Throughout the year, the company maintained a strong liquidity position, characterized by US$287.5 million in cash reserves and a complete absence of interest-bearing bank debt.
Strategic priorities during this period included portfolio diversification into sandbox and casual gaming genres, alongside a commitment to global talent acquisition and infrastructure development. The company expanded its workforce by 35% and invested heavily in customer support and data privacy compliance, including adherence to GDPR. Corporate governance remained a focal point, with the board maintaining rigorous oversight through specialized committees and the formalization of an Environmental, Social, and Governance framework to align operations with stakeholder expectations.
Financial reporting for 2018 reflected the initial adoption of IFRS 9 and IFRS 15, which necessitated adjustments to financial instrument classification and revenue recognition methodologies. Despite the complexities of the "free-to-play" business model, the company’s financial statements received an unqualified audit opinion from KPMG. To enhance shareholder value, IGG Inc. executed significant share repurchases totaling approximately HK$594.1 million and continued its policy of dividend distribution. While the company maintains structured contracts to operate within the PRC, these arrangements represent a minor portion of total assets and revenue, with the board actively monitoring regulatory developments to ensure ongoing compliance.
