IGG Interim Results Announcement: Six Months Ended 30 June 2017

Key insights

6 takeaways

01
IGG reported a 117% year-over-year revenue increase to US$273.5 million and a 205% net profit surge to US$76.2 million for the first half of 2017.See it on page 1
02
The mobile title Lords Mobile served as the primary growth driver, accounting for 69% of total revenue and reaching monthly gross billings of over US$41.1 million by June 2017.See it on page 29
03
Mobile gaming now constitutes 99% of the company's total revenue, supported by the continued performance of the established title Castle Clash.See it on page 29
04
The company maintains a strong financial position with US$237.3 million in cash, zero bank borrowings, and a dividend payout of HK35.0 cents per share.See it on page 18
05
Gross profit rose 110% to US$186.1 million, despite higher operating costs driven by increased marketing investments and channel fees.See it on page 32
06
Revenue risk is mitigated by a diversified global customer base where no single client accounts for more than 10% of total earnings.See it on page 12

Summary

IGG achieved exceptional financial performance during the first half of 2017, characterized by triple-digit growth across key metrics. Revenue surged 117% year-over-year to reach US$273.5 million, while net profit climbed 205% to US$76.2 million, effectively surpassing the company’s total profit for the entire 2016 fiscal year. This rapid expansion was underpinned by a robust operational cash flow, allowing the company to maintain a strong liquidity position with US$237.3 million in cash and zero bank borrowings. Reflecting this financial health, the board declared total interim and special dividends of HK35.0 cents per share.

The primary catalyst for this growth was the blockbuster mobile title Lords Mobile, which accounted for 69% of total revenue and reached monthly gross billings exceeding US$41.1 million by June 2017. Alongside the sustained stability of the long-running title Castle Clash, these games solidified the company’s dominance in the mobile gaming sector, which now contributes 99% of total revenue. The company’s success is further supported by a highly diversified global customer base, with no single client accounting for more than 10% of total earnings, mitigating concentration risk.

Operating on a global scale, the company continues to prioritize market share expansion through aggressive marketing investments and the ongoing development of new intellectual property. Despite rising operating costs associated with increased channel fees and promotional activities, gross profit rose 110% to US$186.1 million. With a stable governance structure led by a diverse board of directors, the company remains positioned to leverage its current momentum to sustain long-term growth within the competitive international mobile gaming landscape.