Financial · November 13, 2014

Third Quarterly Report 2014

Published by IGG

Summary

IGG Inc. experienced a period of robust financial expansion during the first nine months of 2014, characterized by a 180.9% year-over-year revenue increase to $144.1 million. This performance represents a significant fiscal turnaround, shifting from a $2.7 million loss in the previous year to a profit of $51.3 million. The primary catalyst for this growth is the company’s successful transition toward mobile gaming, with titles such as Castle Clash and Clash of Lords now accounting for 87% of total revenue. While gross profit margins experienced a marginal contraction to 71.8% due to rising channel costs, the company remains focused on global market penetration, portfolio diversification, and the monetization of its proprietary social platform, Link. Corporate governance and internal restructuring remained central to operations throughout this period. The company maintained strict compliance with securities transaction codes and formalized an act-in-concert agreement among its primary controlling shareholders. Strategic human capital management was evidenced by the appointment of a new Chief Financial Officer and the continued consolidation of the Chairman and CEO roles under Mr. Zongjian Cai. Furthermore, the company actively utilized share-based incentive programs, granting over 10 million options and more than 2.4 million awarded shares to align the interests of management and employees with long-term corporate performance. The company’s operational scope remains international, supported by a diversified tax profile across its global subsidiaries. By successfully converting preferred shares and executing open-market share purchases to support its award schemes, the organization has strengthened its capital structure. Moving forward, the strategic emphasis remains on sustaining mobile-first growth while navigating the competitive landscape of the global digital entertainment industry through continued investment in both product development and platform infrastructure.

From the report

THIRD QUARTERLY REPORT CLASH TEXAS HOLD ' EM OFLORDS1I POKER ICG WINGS CASTLE ! GOTGAMES DESTINY CLASE HEROES SLOT DNSTER Machines GODOWAR IGG INC TOOTi Incorporated in the Cayman Islands with limited liability

CHARACTERISTICS OF THE GEM OF THE STOCK EXCHANGE GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM. H o o f h n o g t T h w h t i K s h s i p o s o e r u t n e e r h r n R e g v p e p o p e u o o E r t o l b r e s x t r a e m e s , c t r s , h i m t G i s o s f a i l o o f o n a e n f r v k g a g g e e d t w i e f v h r i r s n n n i h e o n i g o i a i n m c g r n h g o r k d i e o n n r t t p r h h f o C d r o i e e w e n e l r e s c m D L l a r e e e i e r i s n a d p r i l t n e i t t g t i a a i n c i g o e v n t t g e n i o c o L a , e r o i n n m w s a f u d n c i a i p S t t o d s b h e e o l e d l c t n t e r o l u h i e c e a t r e t g h i i f n i t t r , v a e s i d e e e r t d a w h s l a T y c e r h o h t c e a o e n o u i n n n l r d e S f t t a o o h h t c o i o r e e n y o m r c d t G C k o a h a i v n r o r t e E i o i y d m r c o x w o u c p n m p h m a t a a h c a l a r l p n o t y t n E t l y n o e g e a n .

a t r e t g h i i f n i t t r , v a e s i d e e e r t d a w h s l a T y c e r h o h t c e a o e n o u i n n n l r d e S f t t a o o h h t c o i o r e e n y o m r c d t G C k o a h a i v n r o r t e E i o i y d m r c o x w o u c p n m p h m a t a a h c a l a r l p n o t y t n E t l y n o e g e a n . t t f e r c t a e s T e c t i n o h h n e r t e p h f e e e p s r e d t H s c i D s o f o o e i a i u n r n n m n e l M t l g t d c e i h r s t a n e s K i o e s r s t i k x o r o s p s r p e n n o e , o t r g p n f e h o o o s s t a f L i s f h r b v i l t w m i y T i i s n l i h i h s i d t r g t e y e i e i a c s , p d m h c c S i o c l n t a a t w o u r c a i t d m c r l . o k u a e k e u d t e a a E l e d n n l x s l a o c y m n r p h e l d r a a i a e a a r n k s c s b t e p g i o o i c l o e n m i u a t n a y l n o a p s b y f r w l i l e b s e H s t h i g l t e i o e a a t i v y n t n t i n s e e g q o f m n o u a e K l r i e i v l r n o n e i t m e n h r t c s g e a o , f h o t m e c L e c r o r i o r p m e i a n n a l i i n n i f l a t t i e y e n r r o n m e d c l r s o t e s p f s t t o e s w h h r c i a i s t t t t s h h , r e e a t p n o o d r t m i s l e a d i n g .

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY HIGHLIGHTS Available- Shares for-sale For the nine months ended 30 September Share Share held equity 2014 Exchange 2013 Nonfor share investment Issued premium option award revaluation US’000 HK’000² US’000 HK’000² capital account reserve schemes reserve (Unaudited) reserve profits dividend (Unaudited) equity US'000 US'000 US'000 US'000 US'000 US'000 US'000 US'000 US'000 US'000 US'000 US$'000 US'000 Revenue 184,600 1,553 144,076 1,117,180 51,294 397,739 3 51,278 8 397, (53,265) 2,879 Profit (loss) for the period 615 (2,650) (20,548) Profit (loss) for the period attributable 51,072 51,072 206 51,278 Other comprehensive 51,072 396,017 to owners of the parent (2,650) (20,548) Adjusted net income¹ 52,703 408,664 12,366 95,887 of available-for-sale 1 Adjusted net income represented profit excluding share-based compensation, and the fair value loss of the redeemable convertible Preferred Shares, which were converted to ordinary Shares on 31 May 2013 in accordance with the then applicable net of tax articles of association of the Company and have been transferred to equity. It is considered a useful supplement to the condensed consolidated statement of profit or loss indicating the Group’s profitability and operational performance for the financial periods presented. consolidated statement 2 Amounts denominated in U.S. dollars have been converted into Hong Kong dollars at an exchange rate of HK7.7541=US1.00, for illustration purpose only. Such conversions shall not be construed as representations that amount in U.S.

formance for the financial periods presented. consolidated statement 2 Amounts denominated in U.S. dollars have been converted into Hong Kong dollars at an exchange rate of HK7.7541=US1.00, for illustration purpose only. Such conversions shall not be construed as representations that amount in U.S. dollars were or could have been or could be converted into H (3,046) ong Kong dollars at such rates or any other exchange rates on such date or any other date. – The Group’s revenue for the Period was approximately US$144.1 million, 70 70 70 representing an increase of approximately 180.9% over the revenue of approximately US$51.3 million for the corresponding period in 2013. Compared to the three months ended 30 June 2014, revenue increased by approximately 9.2% from US47.8 million to US52.2 million for the three months ended 30 September 2014. controlling interests ’ 480 480 – The Group s profit for the Period was approximately US51.3 million, compared with the loss of US2.7 million for the corresponding period in 2013. 1,425 1,425 1,425 Shares purchased for ’ – The Group s profit attributable to owners of the parent for the Period was approximately US$51.1 million, compared with the share award schemes (4,300) (4,300) loss attributable to the owners of the parent of US$2.7 million for the corresponding period in 2013.

1,425 1,425 Shares purchased for ’ – The Group s profit attributable to owners of the parent for the Period was approximately US$51.1 million, compared with the share award schemes (4,300) (4,300) loss attributable to the owners of the parent of US$2.7 million for the corresponding period in 2013. 374 374 Final 2013 dividend paic ’ – The Group s adjusted net income for the Period was approximately US$52.7 million, representing an increase of 325.0% over 2014 interim US$12.4 million for the corresponding period in 2013. dividend paid (9,885) (9,885) (9,885) – The Directors of the Company do not recommend the payment of any dividend for the three months ended 30 September At 30 September 2014 2014 (three months ended 30 September 2013: nil). (23) (unaudited) 3 185,141 (4,300) 88 8 (12,078) 171,603 686 172,289

Pages: 42
Words: 20,166
Type: Financial

Topics

View this document on Game Industry Library.

Related Documents

Financial

Interim Report 2022

During the first half of 2022, IGG faced a challenging financial period characterized by a 23% year-on-year revenue decline to HK$2.49 billion. This downturn was primarily driven by the natural maturity of the company’s flagship title, *Lords Mobile*, and compounded by significant investment losses totaling HK$114 million. Consequently, the company recorded a net loss of HK$172 million, a sharp reversal from the profit of HK$577 million reported in the same period of 2021. In response to these pressures, the Board opted not to declare an interim dividend, prioritizing resource optimization and long-term strategic investments. Operational adjustments included an 11% reduction in total headcount and a strategic pivot toward increased research and development, which saw a 48% rise in spending to HK$738 million. While core game operations returned to profitability by the second quarter, the company continues to navigate a transition phase, marked by significant capital commitments such as the construction of a new office facility in Fuzhou. The company maintains a diversified investment portfolio, holding material stakes in private equity funds like MFund and Griffin Gaming Partners to support its long-term focus on the global mobile gaming sector. Corporate governance remains centered on a leadership structure where the chairman and CEO roles are unified, a deviation from standard codes that the company justifies through existing internal checks and balances. Furthermore, IGG continues to utilize structured contracts to operate within the People’s Republic of China, ensuring compliance with foreign investment restrictions. Although these entities represent a small portion of total revenue, the company acknowledges the inherent regulatory uncertainty of this model. Moving forward, the organization intends to leverage its R&D investments to launch innovative titles, aiming to stabilize performance despite expectations of continued net losses through the remainder of 2022.

market-analysis mobile strategy+2

IGGSept 2022

Financial

First Quarterly Report 2014

IGG Inc. achieved substantial financial expansion during the first quarter of 2014, signaling a successful transition from a net loss of US$3.9 million in the prior year to a profit of US$13.6 million. Total revenue reached US$44.1 million, representing a 206.3% year-over-year increase. This growth was primarily fueled by the mobile gaming segment, which accounted for 79.3% of total revenue, largely due to the widespread success of the title Castle Clash. Despite rising operational, marketing, and research expenditures, adjusted net income climbed to US$13.8 million, a 193.6% increase compared to the first quarter of 2013. The company maintained a robust international footprint as of March 31, 2014, serving 14.5 million monthly active users across 180 countries. Strategic initiatives during this period included a partnership with Tencent for distribution within the People’s Republic of China and the expansion of research and development capabilities through new subsidiaries in Canada. These efforts underscore a commitment to scaling global operations while diversifying the company’s technical infrastructure. Corporate governance and internal management remained central to the company’s operations, characterized by a structured shareholding arrangement and the implementation of long-term incentive programs. Specifically, the company utilized Pre-IPO and post-listing share option schemes, granting 3.7 million options and 1.56 million awarded shares to employees and directors with four-year vesting schedules. While the company adheres to standard governance protocols, it maintains a combined Chairman and CEO role, which the board justifies as a necessary measure for effective strategic management. No dividends were declared for the period, as the company prioritized reinvestment and the allocation of capital toward share purchase schemes to support its ongoing growth trajectory.

investment market-analysis mobile+3

IGGMay 2014

Report

Q4 2025 Investor Presentation

The Q4 2025 investor presentation details a period of record financial performance for the company, characterized by significant revenue growth and successful strategic integration. The primary thesis centers on the company’s transformative year, highlighted by the successful consolidation of Plarium and a shift toward a midcore gaming focus. For the fourth quarter of 2025, the company achieved net sales of SEK 3,123 million, representing an 8% organic growth rate and a 108% increase in constant currency year-over-year. Adjusted EBITDA reached SEK 717 million, maintaining a 23% margin, while unlevered free cash flow totaled SEK 878 million with a 66% conversion rate. The scope of the report covers the global gaming operations of the company throughout the 2025 fiscal year, with specific emphasis on the fourth quarter. Key operational findings indicate that user acquisition (UA) spending rose to 38% of revenue in Q4, a 98% year-over-year increase in constant currency, largely driven by the integration of Plarium and the scaling of casual and racing franchises. Revenue streams showed a notable shift, with direct-to-consumer contributions rising 600 basis points to 32% of the total. Franchise performance was bolstered by strong results in the racing and word game segments, which saw year-over-year growth of 43% and 28%, respectively. Methodologically, the financial data is presented on a reported basis, with constant currency adjustments applied to isolate organic growth trends. The report incorporates full-year 2025 figures and highlights the impact of the Plarium acquisition, which was integrated into the group starting in February 2025. Looking ahead, the company concludes the period with a stable leverage ratio and a new organizational structure, positioning itself for continued midcore expansion and the potential public offering of its PlaySimple division.

market-analysis monetization user-acquisition+5

Modern Times Group

Financial

Q4 2025 Interim Report

The interim filing presents the fourth‑quarter 2025 financial results for a midcore‑casual gaming group, emphasizing a record‑setting revenue run and the successful execution of a transformation agenda that includes the integration of the Plarium acquisition and the rollout of a new district structure in early 2026. Revenue reached SEK 3,123 million, reflecting 108 % organic growth year‑on‑year and a 25 % increase on a constant‑currency basis, while adjusted EBITDA rose to SEK 717 million, delivering a 23 % margin that matches the full‑year figure. Unlevered free cash flow amounted to SEK 878 million, with a cash‑conversion rate of 66 % and a leverage ratio of five times EBITDA, underscoring robust liquidity and disciplined capital management. User‑acquisition spending accelerated, representing 38 % of quarterly revenue—up from 37 % in the prior quarter—and grew 76 % on a reported basis, driven by heightened investment in original studios, new casual titles, and the racing franchise. The direct‑to‑consumer channel expanded by 600 basis points to 32 % of total revenue, reflecting a strategic shift toward higher‑margin in‑app purchases. Across the fiscal year, the company posted a 9 % organic revenue increase, with word‑games, racing, and RAID franchises delivering the strongest quarter‑end performance. Operating cash flow for the quarter stood at SEK 840 million, while adjusted net income was SEK 1,390 million, translating to an adjusted EPS of SEK 11.33. The financial outcomes exceed guidance and position the firm to meet its medium‑term outlook, with a pre‑IPO study for PlaySimple concluded and the midcore transformation progressing as planned.

market-analysis monetization user-acquisition+5

Modern Times GroupFeb 2026