IGG Inc. Interim Results Announcement: Six Months Ended 30 June 2015

Key insights

6 takeaways

01
IGG Inc. reported US$103.8 million in revenue for the first half of 2015, a 12.9% increase year-over-year, with mobile games contributing 93.4% of total earnings.See it on page 1
02
Profit attributable to equity holders fell by 24.6% to US$24.8 million, impacted by higher royalty costs, new EU VAT requirements, and an 87% surge in R&D spending to US$12.9 million.See it on page 3
03
The company maintains a strong liquidity position with US$173.1 million in cash and deposits and zero outstanding bank borrowings.See it on page 46
04
IGG Inc. successfully transitioned its listing from the GEM to the Main Board of the Hong Kong Stock Exchange in July 2015.See it on page 11
05
The company is pursuing a global expansion strategy, evidenced by the relocation of its headquarters to Singapore and the establishment of creative hubs in North America, Korea, and China.See it on page 37
06
Operational risk is mitigated by a diversified revenue stream, as no single entity accounts for more than 10% of the company's total revenue.See it on page 46

Summary

IGG Inc. experienced a period of strategic transition and financial expansion during the first half of 2015, characterized by robust revenue growth alongside tightening profit margins. Total revenue reached US$103.8 million, representing a 12.9% increase over the same period in 2014, primarily fueled by the company’s mobile game portfolio, which accounted for 93.4% of total earnings. Despite this top-line success, profit attributable to equity holders declined by 24.6% to US$24.8 million. This contraction was largely driven by increased channel and royalty costs, new EU VAT requirements, and a significant 87% surge in research and development expenditure, which reached US$12.9 million as the company scaled its global development efforts.

The company maintained a resilient financial foundation throughout this period, ending the first half of 2015 with US$173.1 million in cash and deposits and no outstanding bank borrowings. This liquidity supported the company’s ongoing global expansion, which included the relocation of its headquarters to Singapore and the establishment of a diversified creative presence across North America, Korea, and China. Operational stability was further reinforced by a broad customer base, with no single entity accounting for more than 10% of total revenue.

Strategic initiatives during this timeframe focused on long-term sustainability and market positioning. The company successfully transitioned its listing from the GEM to the Main Board of the Hong Kong Stock Exchange in July 2015 and actively managed its equity structure through share option and award schemes. Looking ahead, the organization intends to leverage its proprietary advertising platform and pursue strategic acquisitions to bolster its upcoming pipeline of titles. By balancing aggressive R&D investment with a focus on mobile-first growth, the company aims to navigate rising operational costs while maintaining its competitive standing in the global free-to-play gaming market.