Lords Mobile

IGG Inc Interim Results Announcement: Six Months Ended 30 June 2023

IGG Inc. navigated a transitional period during the first half of 2023, characterized by a strategic pivot toward new gaming titles and aggressive operational optimization.

• IGG Inc. reported H1 2023 revenue of HK$2.5 billion, a 1% year-over-year increase, as new titles like 'Doomsday: Last Survivors' and 'Viking Rise' offset the decline of 'Lords Mobile'.
• The company recorded a net loss of HK$360 million for the first half of 2023, primarily due to heavy marketing investments, though it returned to profitability by June 2023.
• Operational expenses for research, development, and administration were reduced by 30% through the integration of AIGC technology, maintaining a 72% gross profit margin.

IGG Inc. 2023 Interim Results

IGG Inc.’s 2023 interim results highlight a strategic transition toward product diversification and the rapid expansion of its non-gaming application business.

• IGG Inc. reported H1 2023 revenue of HK$2.499 billion, representing a 1% year-over-year increase and a 19% increase compared to the second half of 2022.
• The company recorded a net loss of HK$360 million in the first half of 2023, primarily driven by aggressive marketing expenditures to scale new titles and the application business.
• Gross profit margins improved to 72%, a 4 percentage point increase over the previous year, due to optimized channel costs and the growth of the application segment.

IGG Inc. 2023 Interim Report

IGG Inc. reported a revenue of HK$2.5 billion for the first half of 2023, representing a 1% year-over-year increase.

• IGG Inc. reported H1 2023 revenue of HK$2.5 billion, a 1% year-over-year increase, with flagship title Lords Mobile contributing HK$1.6 billion.
• The company recorded a net loss of HK$360 million, more than doubling the prior year's HK$171.8 million loss due to an 85% surge in marketing expenses totaling HK$1.48 billion.
• Aggressive integration of AIGC technology reduced R&D expenses by 32% and administrative costs by 19%, enabling the Group to return to monthly profitability by June 2023.

IGG Inc Annual Results Announcement: 2022

IGG Inc. faced a difficult fiscal year in 2022, recording its first annual net loss since its initial public offering.

IGG 2022 Annual Results

The 2022 annual results for IGG INC reflect a period of significant financial contraction and strategic transition for the global mobile game developer.

• IGG reported a 2022 revenue of HK$4.59 billion, a 24% year-over-year decline that resulted in a net loss of HK$504 million compared to a HK$370 million profit in 2021.
• The company's primary revenue driver, Lords Mobile, experienced a 27% decline in performance, contributing to a 25% drop in total gross profit to HK$3.15 billion.
• Despite financial losses, IGG maintained a 69% gross profit margin and increased R&D spending by 4%, with R&D personnel now comprising 60% of the 2,500-person workforce.

Call of Duty: Mobile and 11 More Mobile Games to Join $2 Billion Club in 2023

The global mobile gaming market is experiencing a period of contraction, with consumer spending projected to decline by 5% in 2022 to $110 billion, followed by an additional 3% decrease in 2023.

• The global mobile gaming market is contracting, with consumer spending projected to fall by 5% in 2022 and an additional 3% in 2023.
• Economic instability and privacy-related user acquisition challenges, including IDFA restrictions and Google privacy updates, are the primary drivers of the market downturn.
• Eleven mobile games, including Call of Duty: Mobile, State of Survival, and Brawl Stars, are projected to reach the $2 billion lifetime revenue milestone in 2023.

IGG Interim Results Announcement: Six Months Ended 30 June 2022

During the first half of 2022, IGG faced a period of significant financial contraction, reporting a net loss of HK$171.8 million compared to a profit of HK$577.3 million in the same period of 2021.

• IGG reported a net loss of HK$171.8 million for the first half of 2022, a sharp reversal from the HK$577.3 million profit recorded during the same period in 2021.
• Revenue fell 23% year-on-year to HK$2.49 billion, driven primarily by the natural maturity of the flagship title Lords Mobile and broader economic headwinds.
• The company's bottom line was significantly impacted by impairment losses on associates and joint ventures, alongside a net loss within its investment portfolio.

IGG 2022 Interim Results

The 2022 interim results for IGG Inc. outline the financial and operational performance of the global mobile game developer and publisher for the first half of the year.

• IGG reported H1 2022 revenue of HK$2.48 billion, a 23% year-over-year decline driven by the maturation of legacy titles like Lords Mobile.
• The company recorded a net loss of HK$171.8 million for the first half of 2022, though it returned to profitability in the second quarter following cost-control and resource optimization measures.
• Research and development is the company's primary strategic focus, with nearly two-thirds of the 2,700-person workforce dedicated to developing new titles in the strategy, idle RPG, and match-3 puzzle genres.

IGG Inc. 2022 Interim Report

IGG Inc. reported a challenging financial performance for the first half of 2022, characterized by a 23% year-on-year revenue decline to HK$2.49 billion and a shift from a HK$577 million profit in 2021 to a net loss of HK$172 million.

• IGG Inc. reported a net loss of HK$172 million for the first half of 2022, a significant reversal from the HK$577 million profit recorded during the same period in 2021.
• Total revenue declined 23% year-on-year to HK$2.49 billion, primarily due to global economic pressures and the natural maturation of the flagship title Lords Mobile.
• Lords Mobile remains the company's core asset, accounting for approximately 80% of total turnover despite the broader financial downturn.

IGG Annual Report 2021

The 2021 annual report for IGG details a period of significant operational expansion contrasted by a sharp contraction in net profitability.

• IGG achieved record revenue of HK$6.05 billion in 2021, an 11% increase driven by the flagship title Lords Mobile and portfolio diversification.
• Net profit fell sharply to HK$370 million from HK$2.1 billion in 2020, primarily due to increased R&D spending, a 53% growth in headcount, and losses from financial investments.
• The company maintains a strong liquidity position with HK$1.95 billion in cash and cash equivalents and no interest-bearing debt beyond lease liabilities.

IGG 2021 Annual Results

The 2021 annual results for IGG, a global mobile game developer and publisher, detail a year of strategic transition characterized by increased investment in research and development alongside a significant decline in net profit.

• IGG reported a 11% increase in annual revenue to HK$6.05 billion, driven by the performance of flagship title Lords Mobile and newer games like Time Princess.
• Net profit plummeted 82% to HK$369.6 million, primarily due to an 82% surge in R&D spending and a 36% increase in selling and distribution expenses.
• The company is aggressively expanding its development capabilities, with over two-thirds of its 3,000-person workforce now dedicated to R&D in Shanghai and Chengdu.

The State of Mobile Gaming: Market Trends and Top Titles in the U.S., Europe, and Asia 2022

The analysis demonstrates that the global mobile-gaming market entered a contraction phase in early 2022, with revenue falling 6% year-over-year and the first decline since 2019.

• The global mobile gaming market experienced its first revenue decline since 2019, contracting 6% year-over-year in early 2022.
• Consumer spending in the U.S. and Japan saw double-digit drops, including a 22% decline on Google Play in the U.S., while emerging markets like Brazil and Vietnam gained significant share.
• Europe bucked the global trend with an 18% revenue increase to $8.6 billion, fueled by growth in Turkey and Poland and the popularity of hyper-casual titles.